What Are Some Pros and Cons of Having a Living Trust

A living trust can be a simple way to provide for your family upon passing. It is a commonly used solution that can help families escape avoidable financial problems. Colorado Estate Planning Law Center is here to answer any questions concerning the pros and cons of having a living trust.

Belo, we will discuss some advantages and disadvantages of implementing a living trust. Please reach out if you need more in-depth advice or are ready to begin estate planning.

Pros of a Living Trust

You may choose a living trust when making plans for your estate for numerous reasons. Listed below are some of the advantages:

Avoiding Probate Court

Probate court can be time-consuming and very expensive. If your estate consists of property across multiple states, your family might face probate court in each place. This can drain your estate before it makes it to your beneficiaries.

Aside from the time it takes and the expense it creates, another reason you may opt for a living trust is due to the privacy it provides you and your family. Probate is on the public record, meaning anyone can access that information. This means all of your debts and assets are public knowledge, as are the heirs to your estate and what they inherited.

By utilizing a living trust, the transfer of assets can be completed quickly, usually in weeks, with the details remaining private.

Retaining a Way to Protect Your Loved Ones

One of the most difficult things to consider when we face our own mortality is leaving our family members unprotected. When passing, you obviously will not be able to provide them with your protection and guidance physically. You will be able to protect them through a living trust financially.

Here are a few ways that a living trust can provide protection for your loved ones:

  • You have the power to delay when assets are distributed to your children or younger heirs. This can keep the money from falling into the wrong hands, such as creditors or a former spouse. You can wait for assets to be distributed until the child graduates, completes school or college, or until they reach a reasonable age.
  • You can make sure that your special needs child is not disqualified from the benefits they need. By using a living trust, you can avoid having their assets held against them, meaning they do not qualify for the help that would otherwise be available to them.
  • If any of your heirs are facing financial woes, you can use a living trust to avoid having the money taken by creditors.
  • Avoiding a conservatorship is another advantage of having a living trust. This can protect your family if you are rendered incapacitated since your estate can avoid going under a conservatorship.

Cons of a Living Trust

When determining whether a living trust is the best option for your estate plan, you should consider the advantages and disadvantages. Some of these cons are listed below:

  • More paperwork is required to create a living trust. Ownership of all of your assets that will be entering the trust must be transferred to you as the trustee. Titles must be moved into the trust, and new deeds must be prepared.
  • Diligence is necessary when maintaining accurate records of what is entered into or taken out of the trust. This is not a complicated process but a necessary one.

Contact Us to Begin Your Living Trust Today

Depending on your family and your estate, a living trust could save your family time and money and protect them as well as their privacy. Speak to one of our talented attorneys at Colorado Estate Planning Law Center about the best route to take to protect your family and the assets you have worked so hard to accrue. Contact us today to set up a consultation.