By Kelly Howe
Millions of people work hard all their lives. They support their families and have a very comfortable life. If the unfortunate happens, and you become ill or unable to make financial decisions for yourself, a living trust may be an option worth investigating.
There is a lot of confusion of what a living trust is. Despite what some people believe, a living trust and a living will are two separate but legal documents that are binding in any court. A living trust can protect your assets should you be unable to make decisions for yourself. It is important to understand that you cannot use a living trust for illegal purposes.
A living trust is created when a person has possessions and assets that they want to will to their loved ones before or after their death. It is a legal document that should be prepared by an attorney that specializes in this area.
There are many people who believe that a living trust is a farce and it benefits no one. The truth is, it depends on what the possessions and assets actually are. As with anything, there are advantages and disadvantages to a living trust. Those who have had a living trust drawn up have found that it is very beneficial to them.
Some of the advantages to a living trust are that you can avoid the probate process and bypass estate taxes. A living trust and also provide the benefits of privacy, flexibility, and in instances, if you become incapacitated, you can avoid someone else becoming your guardian.
Perhaps the biggest advantage of a living trust is that it can be initiated while you are still alive. You will be able to judge if the plan is right for your situation and adjust it if needed. If you have a midsize to large estate, a living trust would most likely benefit you more than if you have a small estate.
It is important that you understand all of your options and when deciding if a living trust is right for you. You can consult an attorney who specializes in this area. You can also use the resources of the Internet to gather information and have a general idea of what to ask when you meet with the attorney. Being informed is very important when it comes to your finances.
A living trust offers peace of mind at a time when you may be preoccupied with other matters. It offers you the security of knowing that you will be taken care of when you need it most.
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