If you’ve never considered a lifetime trust, it’s likely because you maybe dislike the idea of having to go through probate. In the past, lifetime trusts were heavily pushed on that thing alone, and, it’s true that lifetime trusts do avert probate. However, there’s a lot more to lifetime trusts than just that alone.
Let’s have a look:
- Property Protection for Particular Beneficiaries
This isn’t normally mentioned as a good reason for lifetime trusts, even though it’s one of the most important benefits. When many folk think about estate planning, they commonly think about passing property on to their loved ones after their departure. But, occasionally their beneficiaries aren’t capable enough to managing such an inheritance.
- Sidestepping a Will Contest
It is also true that someone might try contesting a will than a revocable lifetime trust by far. That’s because a will only goes into effect after somebody has died, whereby a revocable lifetime trust goes into effect when the trust has been signed and lasts for some time after the owner’s departure.
- Lowering or Eradication of Estate Taxes
Many people are of the opinion that a revocable lifetime trust cannot save on estate taxes. But, lifetime trusts are commonly utilised by persons and families to get the benefits of specific deductions and credits allowed under tax laws.
- Probate Avoidance
It is a fact that any property in lifetime trusts will not pass through probate after a person’s death and that’s due to the trust spelling out who will obtain the property. It’s very much the same as life insurance, where properties don’t go through probate due because they already have a stated beneficiary.
Not Much Privacy
More than a few people have a dislike for probate because of it being a public process. In theory, anybody can go to a probate court when a person passes away and check out the estate file.
- You can even see the will and find out who the relatives and beneficiaries are.
- You can even get to look at the claims of creditors and the list of assets.
It has been known for unscrupulous salespeople to go through estate files to look for grieving heirs to prey on. Even unhappy heirs, and friends and neighbours, have been known in the past, to peek into an estate file to look what the contents are!
When you attain a lifetime trust, all of that will never happen. Lifetime trusts are not only confidential, but they will never be filed with a probate court, and no outsider will ever get to see without the grantor or the trustee letting them.
The above are the major reasons why it’s more than a good idea to obtain a lifetime trust. If only one (or more) of the above applies to you, then consider consulting with a legal a professional and check out what a lifetime trust can do for you.
Contact and consult with legal professionals and move ahead in life.