Why a Living Trust Might Be Smarter Than a Will (Explained Simply)

Talk to an estate planning attorney to create a living trust that meets your needs.

What's inside?

Block illustration contrasting a will and a living trust, highlighting the advantages of a trust.

Ever wonder what happens to your things when you’re gone? Maybe you’ve heard of a will, but have you heard of a living trust? In a recent podcast, Mark Kohler and Mat Sorensen, experts in estate planning, talked about why living trusts are so important. This article will break down their conversation in a way that’s easy to understand, so you can learn how a living trust works and why it might be a good choice for you.

What is a Living Trust?

Imagine a special box where you put all your important stuff – your house, your car, your money. This box has instructions on who gets what when you’re gone. That’s kind of like a living trust! It’s a legal document that lets you control what happens to your things after you die.

Why a Living Trust Can Be Better Than a Will

Benefits of a Living Trust:

  • Avoids Probate: Probate is like a court process for your stuff after you die. It can be slow, expensive, and public. A living trust helps you avoid probate, keeping things private and less costly for your loved ones.
  • You’re the Boss, Even After You’re Gone: With a living trust, you get to decide exactly how your things are divided. You can even set conditions, like having your kids finish college before they get their inheritance. It’s like “control from the grave,” as Kohler says!
  • Protection from Creditors: A living trust can help protect your assets from creditors, ensuring your loved ones are taken care of.
  • Planning for the Unexpected: What if you get sick and can’t manage your finances? A living trust lets you choose someone you trust to take over for you.

What You Can Do

Steps to Consider:

  • Talk to an Expert: Estate planning can be tricky. It’s best to talk to an estate planning attorney who can help you create a living trust that fits your needs.
  • Think About Your Loved Ones: Who do you want to inherit your things? What are their needs? A living trust lets you provide for your family and friends in a way that’s fair and reflects your wishes.
  • Don’t Forget the Little Things: Remember to include everything in your estate plan, even your pets!
  • Keep it Updated: Life changes, so it’s important to review and update your living trust as needed.

Conclusion

Creating a living trust is like giving a gift to your future self and your loved ones. It gives you peace of mind knowing that your things are protected and will be distributed according to your wishes. Don’t wait – take control of your legacy today!

Take Action 

Ready to take the next step? Learn more about estate planning and living trusts by visiting XOA TAX or contacting us directly at +1 (714) 594-6986 or [email protected]. Our team of experts can help you create a plan that meets your unique needs and ensures your legacy is protected. You can also reach us through our contact page.

 

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