Benefits of a Living Trust
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By Law Offices of Maribeth Blessing
Published: August 11, 2005 |
A Living Trust eliminates a Living Probate.
If you become disabled or are unable to manage your estate, your Living Trust avoids the need for a court-mandated conservatorship. The successor trustee you have named in the trust will manage your affairs without government interference and expense.
A Living Trust avoids Death Probate.
With a Living Trust, your assets will go directly to your beneficiaries after your death. There will be no probate attorney=s fees or court costs. There will be no delay in distributing your assets, and all of your estate planning goals will remain private.
A Living Trust can reduce or eliminate federal estate taxes.
With a Living Trust, a married couple can pass twice the exempt amount estate-tax-free to their heirs. That means, in 2001, with proper tax planning, a married couple can make a tax-free transfer of $1,350,000. That same couple can transfer $2,000,000 estate tax-free in 2006. A single person can pass $675,000 estate-tax-free in 2001, gradually climbing up to $1,000,000 in 2006.
A Living Trust allows you to restrict how your estate is managed and even spent after your death.
A Living Trust can provide for the care, support and education of your children by turning over assets to them at an age chosen by you. Even insurance proceeds can be paid to the trust so your successor trustee can manage them for the benefit of your family.
A Living Trust can protect children from earlier marriages.
Both the surviving spouse and the children from a previous marriage can receive fair treatment protection under the terms of your Living Trust.
A Living Trust can insure that a person's wishes are carried out and are not subject to attack.
Most Living Trusts contain a No Contest Clause which prevents greedy beneficiaries and their lawyers from successfully attacking your estate plan.
A Living Trust provides peace of mind.
When your Living Trust is completed, you and your family will relax knowing that your estate will be managed and distributed by someone you have selected and trust.

