1. Avoid Probate
A living trust allows your estate to avoid the lengthy (typically 18-24 months), expensive (attorneys & other probate fees will often run 5-10% of the value of your estate), and often frustrating probate process.
2. Maintain Privacy
A will becomes a matter of public record during the probate process, and a copy can be obtained upon request by anyone who is interested. A Living Trust is a private document that is not subject to public scrutiny.
3. Reduce Estate Taxes
The Estate Tax Credit, as mandated by Congress, currently shelters up to $2 million from estate taxes. With only a will in place, a married couple will receive a single $2 million exemption. Structured properly, a Living Trust can double this exemption to $4 million. With the tremendous appreciation in real-estate values in California this will become important for an ever-increasing number of families as they watch their estate values grow over the years.
4. Ensure Your Wishes are Followed
A Living Trust provides instruction not only for the distribution of your financial assets, but also for personal effects or family heirlooms you would want someone specific to have. Additionally, a living will (contained within our Mulitpurpose Estate Plan) provides specific instruction in the event you become incapacitated, saving your loved ones from being forced to make impossible decisions in a time of difficulty. Other provisions allow you to spell out who should assume guardianship of any children under the age of 18, what detailed funeral or memorial arrangements you would like, and who should take over your family business, for example.
5. Maximum Control with Total Flexibility
Only a Living Trust combined with a Multipurpose Estate Plan provides the security and control described above with the ability to change your mind at any time. You can cancel your trust completely, change your disbursements, add or remove assets, control the investment of your assets or alter other provisions whenever you wish. |
