Top Three Benefits of a Living Trust

Protecting one’s assets from potential legal threats, and making the process of passing wealth to beneficiaries seamless, are two of the biggest benefits of living trusts. Also, this legal entity makes it simple to access funds while one is still living. These advantages are ideal for all types of people, over the long run.

Asset Protection

There are lots of potential risks out in the world that can make it hard to preserve wealth, in the event of a lawsuit and subsequent trial. Living trusts provide some layer of protection, helping to shield one’s personal assets in the event that someone else is entitled to monetary damages. While total asset protection is almost unavoidable, a living trust does help preserve wealth.

Wealth Distribution

The distribution of wealth to beneficiaries is often a complicated process after one dies. There are also various fees that the estate has to pay in order settle with the government. Probate becomes easier and the process of wealth distribution becomes more streamlined, when a living trust is utilized. There is no reason to spend more money to settle an estate than one has to. Also, one’s beneficiaries will be less burdened with the estate, once it’s time to be settled.

Access to Wealth

Being able to access one’s wealth is a benefit that can be used both in times of relative financial stability, but also in times of calamity. It’s hard to know when one will need their money and how much of it they’ll need, so protecting one’s wealth while keeping a life line open to it is imperative. Unlike a 401K or a traditional IRA, there are no early withdrawal fees. While a trust is not a tax-deferred investment entity, it does protect one’s finances.

Living trusts are dynamic legal entities that allow owners to protect their assets from a myriad of threats, while providing access to funds, as needed. Living trusts are a smart option for many people, but it’s important to get the advice of a qualified attorney or financial adviser, before making a final decision on estate planning services in San Diego.

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