This article is intended for educational purposes only and is not legal advice. For guidance on your personal situation, please contact a lawyer.
Two out of three Americans have no estate planning document in place, according to a survey of 2,400 people conducted by YouGov for Caring.com's 2023 Wills and Estate Planning Study.
If you're one of them, your assets could end up hung up in court and eventually distributed in ways that would never have been your desire.
And if you're a mid-career professional with a spouse and children, estate planning may not be top of mind in your busy life, but it's never too early to put a plan in place.
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The terms "living trust" and "revocable trust" are typically used interchangeably. Here are three reasons why, under either name, using such a trust could be the way to move ahead now with your estate planning.
1. Control now and later
A living trust names a trustee to distribute the assets you place in the trust now and after you're gone. You can be that trustee while you're alive and name a successor trustee to handle the final distribution. And until then, you can easily revoke what you originally said to modify the trust for changing conditions and situations. That's why it's called "revocable."
2. Avoiding probate
Unlike a final will and testament, a trust generally does not have to go through probate, which even if uncontested, is a public process that can take time and money. Many people use trusts to avoid the probate process. Trusts are also, unlike a will, private documents.
3. Cover all your wishes
Along with your material assets, you can include your wishes about your physical self in a living trust, including such matters as whether to allow resuscitation, a feeding tube, or a respirator.
It's generally better, though, to address your wishes for medical care in specialized documents such as power-of-attorney and medical directives. This is an area where speaking with an attorney can be quite helpful.
A document to trust for that most trying time
While end-of-life planning can be emotional and seem overwhelming, a living trust can simplify matters for those you leave behind and for you along the way with its inherent control, flexibility, and privacy.
They're typically more expensive upfront than a simple will, but a simple living trust might be surprisingly affordable while limiting the surprises your loved ones may encounter as they navigate this difficult time.
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There are do-it-yourself documents out there, but it's best to consult with an experienced estate attorney on all this. That's because a thoughtfully crafted living trust ensures your estate passes securely to heirs and avoids legal issues.
Despite the initial time and expense, having this plan in place can be a priceless gift to your family's future, limiting conflict and uncertainty while providing loved ones with stability and financial security during an intensely emotional time.
