How a living trust saves you money
A living trust holds the assets of the person who creates it – the “grantor”– for their benefit during their lifetime. The grantor retains control of the assets in the trust while they’re alive.
After the grantor dies, those assets are transferred to the beneficiaries named in the trust by a “successor trustee” chosen by the grantor during the creation of the trust. If the trust is revocable, its terms can be changed at any time, or the trust can be revoked during the grantor’s lifetime.
A living trust has pros as well as cons associated with it, but one reason people shy away from creating a living trust as a part of their estate plan is the cost of a living trust. However, there’s an exceptionally good chance that setting up a living trust will save you money in the long run.
Before deciding to establish a living trust as part of your estate plan, let’s review how a living trust saves you money.
Three of the ways a living trust saves you money involve:
- Probate fees
Depending on the size of the estate and the assets and individuals involved, the probate process can be lengthy and costly, resulting in delayed distribution of its assets to the beneficiaries. Placing your assets in a living trust allows you to avoid probate and ensure that your assets are distributed quickly. This is especially helpful if you own property in another state.
A living trust offers significant tax savings for capital gains vs. a joint tenancy. Additionally, having a well-crafted living trust can save you money by preventing litigation in the future. Litigation issues involving trusts usually start with a poorly drafted trust and/or estate plan, or when a grantor has tried to update trust documents without the help of a qualified estate planning attorney.
Your planning starts today
If you are concerned about the cost of a living trust, consider the benefits. You’ll save money on the probate process, avoid any confusion regarding asset distribution, and your living trust will not be made part of public record. It’s also difficult for someone to challenge a living trust compared to a will. Furthermore, a living trust may reduce the overall taxes associated with your estate.
Creating a living trust can be complicated, but an estate planning attorney can draw up your trust, then explain all of the details so you can choose your successor trustee. They can assist you in determining which assets you should transfer into the trust and what you should not put in a living trust.
At the Law Office of David W. Foley, California Living Trust, our fees are low because we have streamlined the time process to be more efficient for all involved. We provide high quality and affordable living trusts to have your affairs in order.