A Living Trust Can Eliminate a Guardianship Proceeding.
If you become disabled or are unable to manage your estate, your living trust, combined with Durable Powers of Attorney for Healthcare and Finances can avoid the need for a court mandated guardianship. The persons you’ve appointed will step in and manage your affairs without government interference and expense.
The assets in your Living Trust avoid the delay and cost associated with the death probate process. There will be no probate attorney’s fees or court costs for assets in the trust.
Because a Living Trust avoids probate it provides privacy. Probate is a public process. Anyone can find out how much you had, to whom you left your assets, and other information about you. They do not even need a good reason. They could be nosy neighbors or relatives, or worse yet, they could be scam artists.
Reduce or Eliminate Federal Estate Taxes
With a living trust, a married couple can pass twice the exempt amount absolutely federal estate tax-free to their heirs. That means, in 2011, with proper tax planning a married couple can make a tax-free transfer of $2,000,000 ($1 million per person). However, without proper planning a married couple can lose 1⁄2 or more of their potential exemption amounts.
Decide How Your Estate is Managed and Spent Even After Your Death.
It 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.
Protect Children From Their Creditors and Ex-Spouses.
A living trust can leave your assets to your children in a manner that will reduce the ability of their creditors or ex-spouses to take your children’s inheritance from them.
A Living Trust Gives You 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.
Moshe Y. Toron, Attorney at Law practices in the areas of Estate Planning and Medicaid Planning. The intent of this article is to provide information of a general nature and should not be construed as legal advice. For more information and a free one-hour consultation, please call the Toron Law Firm at (513) 563-3007.