Many people think trusts are only useful to wealthy families. However, every Michigan family can benefit from having a trust as a part of their estate plan. Out of the many different types of trusts, living trusts can help families or individuals plan for unexpected situations while they are still living. Here are some great benefits that living trusts have to offer.
What is a living trust?
A living trust is a legal document that allows the person creating the trust to decide how the assets are managed and distributed during that person’s lifetime and, also, after death. The property that is placed in the living trust is technically owned by the trust, but the trust creator can still control the trust assets. When the trust creator dies, the assets in the trust can be passed straight to beneficiaries.
Benefits of a living trust
One of the great benefits of a living trust, and a big reason why many people prefer them, is the ability to avoid probate. Unlike a will, assets in a trust don’t have to go through the lengthy probate process, since the assets specified in the trust were “owned” by the trust. And since a trust can avoid probate, everything contained therein remains private. Another advantage of living trusts is the ability for the trust creator to include instructions on how they want the estate handled in the event that the individual becomes incapacitated. For example, these can be instructions for distributing assets, paying bills or filing taxes.
Trusts are often great options for those with complex estates. Those in Michigan who have questions about trusts, wills or any aspect of estate planning can get help by contacting a legal professional. An experienced attorney can help families secure their future by helping them create a plan to fit their specific needs.