Common Misconceptions About Living Trusts
Living Trust Lawyer
A living trust is an important estate planning document that states what you want to happen to your property if you become incapacitated or when you die. This legal document can help you avoid probate. However, there are several untruths about living trusts that prevent some people from using them. Here are some common misconceptions about living trusts that you should not believe.
A Living Trust Forces You To Give Up Control of Your Assets
This could not be further from the truth. One of the main benefits of a living trust is that it allows you to maintain control of your assets. You can decide how to distribute assets to beneficiaries, when to distribute the assets and who will control your property if you should become incapacitated during your lifetime.
A Living Trust Is Too Expensive
It is true that a living trust initially costs more to create than a will. It is a much more complicated legal document than a will. However, a living trust may actually help your beneficiaries save more money in the long run because it can skip probate expenses. Additionally, a trust can help your beneficiaries receive their assets faster, saving a lot of headaches and stress.
A Living Trust Is Only Intended for the Wealthy
When people hear a word like “trust,” they imagine something for the very wealthy. However, trusts are not just for the children of multi-millionaires. People who come from modest means can also benefit from living trusts. These legal documents can help them protect their loved ones in the event of their incapacity or death.
A Living Trust Just Benefits Beneficiaries
Although living trusts certainly provide benefits for beneficiaries, the creators of the trusts can also benefit from these documents. For one thing, you will be able to control how your affairs will be handled should you become incapacitated during your lifetime. You can also maintain your privacy with a trust.
A Living Trust Can’t Be Changed
A revocable living trust can absolutely be updated and even revoked. If major changes occur in your life, such as a divorce or birth of a child, you can have your estate planning lawyer make the necessary changes to your trust.