The following discussion will summarize the extraordinary benefits available under a Living Trust:
* A Living Trust avoids a Living Probate
If you become disabled or are unable to manage your financial affairs, your Living Trust will eliminate the need for a Living Probate. A set of detailed instructions will guide your successor trustee as to how you wish your property to be handled during this time.
* A Living Trust avoids a Death Probate
With a Living Trust your assets will go directly to your beneficiaries after your death. There will be no court interference. There will be no attorneys' fees or court costs. There will be no delay in distributing your assets, and all of your estate planning goals will be completely private.
* A Living Trust can reduce or eliminate Federal Estate Taxes
With a Living Trust a married couple can transfer $10,980,000 absolutely free of federal estate tax. A single person can pass $5,490,000 federal estate tax free.
* A Living Trust allows you to distribute assets in the way you want.
After your death, all property in your Living Trust will be distributed by your named trustee according to your precise written instructions. Assets can be left to your beneficiaries outright on your death or they can remain in trust and be distributed over time. Each beneficiary can be treated individually by including any number of separate trusts with different provisions to spell out the terms of each beneficiary's share.
* A Living Trust is easy to create and maintain
A trained Living Trust professional can easily create your trust document to fit your needs. If you want to change a particular provision, it can be accomplished with a simple amendment.
* A Living Trust creates no adverse lifetime income tax consequences
There are no adverse income tax consequences associated with the use of your Living Trust during your lifetime. Because your Living Trust is revocable, the income generated by the assets in your trust is taxed to you as an individual and is reported on your personal income tax returns. This means that your personal income tax situation is exactly the same after the creation of your Living Trust as it was before. You have the same exemptions, deductions, credits and liabilities. You will even continue to file your income tax returns using the same Social Security number you have always used.
* A Living Trust is valid in every state
Every state's laws recognize the validity of a Living Trust. A truly beneficial feature is that your Living Trust can freely cross state lines without any need to redraft its terms to comply with local law.
* A Living Trust is difficult for disgruntled heirs to attack
You have probably heard the stories about bitter contests over the validity of a will after it is submitted for probate. A Living Trust is much more difficult to attack than a will. Unlike a will, a Living Trust is not part of the public probate process which invites and encourages disputes. It is also not governed by the archaic and complex rules surrounding a valid will, and this makes a Living Trust less prone to attack.
* A Living Trust gives you and your family peace of mind
When your Living Trust is completed, you and your family will relax knowing you have taken every step to protect them in the event of disability or death.