Do we really need a living trust? Isn’t a will enough? -- These are some of the most common questions a living trust attorney Encinitas receives from clients.
It is pretty surprising that despite the tons of resources about living trust that can be found online, still there are quite a number of people who are not so sure about whether or not they need it as part of their estate plan.
While a living trust may not be necessary for everybody, there are a number of reasons that having one will work to your advantage. And a living trust attorney Encinitas can help you maximize the benefits of a living trust, including the following:
Can help reduce estate taxes. If you are married, the trust can provide for estate tax savings. For instance, if your property is worth more than $5 million, a living trust (e.g. AB trust) can help reduce (or avoid) the federal estate tax by keeping the deceased spouse’s property out of the surviving spouse’s estate.
Can help protect minor children. You can put money intended for your minor children to a trust until they are responsible enough to manage the money themselves. Many clients opt to give their children access to the monies staggered over a specified period of time. e.g. ages 25, 30, and 35. Again, a trust is designed to realize this particular goal.
Can offer protection for yourself while you are still alive. If you put money to your trust during your lifetime and later become incapacitated, the successor trustee will be able to handle the money for your benefit. This is particularly more beneficial to those individuals who are single or those who do not have children to take care of them.
Can help avoid probate. This is probably one of the most popular reasons why go for a living trust. If you put your assets in the trust during your lifetime, they will not be subject to a probate process when you die. Again, seeking guidance from a proven reputable living trust attorney Encinitas can be a great help to be able to establish a living trust that works.