Reasons to Consider Setting Up a Living Trust
Most people believe that living trusts are only beneficial to those who have amassed significant assets during their lifetimes. While it’s true that people of modest means may be better off drafting traditional wills in certain circumstances, there are certain circumstances where a living will may provide significant advantages. Those who are unsure about how to plan should make an appointment with an attorney for estate planning in San Diego in order to thoroughly explore their options.
One of the major advantages of creating a living will is that it takes care of the immediate needs of the heirs after the person passes away. For instance, if the heir or heirs are financially dependent on the person, it may be drastically affect their lives if they have to wait several months for funds as the will goes through probate. Those who are providing caregiving services for senior parents are particularly vulnerable to this situation. Often, they’ve given up their own career because caregiving is more than a full-time job. A living trust allows them to have immediate access to funds so that they don’t undergo undue hardship after their parent has become deceased. Instead of going through probate, an executor distributes the assets and pays off any unpaid debts.
Another major advantage of living trusts is that they offer all parties involved substantially more privacy than they would get with a traditional will. Because a traditional will is a matter of public record, virtually anyone can view the contents. Not only are traditional wills themselves a matter of public record, but all transactions relating to the will are as well. Scam artists exist who make a regular practice of looking through wills for those who may have inherited even small amounts of cash. They then target those they feel might be easy marks for a variety of scams. Although less potentially damaging but annoying nonetheless, nosy neighbors also often peruse wills simply out of curiosity. They may gossip about the personal finances of their neighbors, which can create emotional distress.
Living trusts are also far more difficult to contest than traditional wills. Those who have reason to believe that someone may contest their will should seriously consider safeguarding their final wishes by having a living trust drawn up.
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