This article is intended for educational purposes only and is not legal advice. For guidance on your personal situation, please contact a lawyer.
Estate planning is one of the hardest things you might ever have to do. For one thing, it can be complex. And if you're not super familiar with the legality of it, you might find yourself spinning.
Also, let's face it. There's something inherently uncomfortable about the idea of not being around.
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Leaving a financial legacy behind for your loved ones, though, might you bring some comfort in the face of an otherwise uncomfortable situation. So to that end, it's important to think about what assets you want your loved ones to inherit.
It's also important to use the right tool to pass along an inheritance. And in that regard, you have some options.
Many people opt to write a will and call it a day. And you could go that route if your estate isn't particularly complex. But you may want to consider a living trust instead for these reasons.
1. You own assets in different states
When you own assets like real estate in different states, using a will to pass them along can open the door to complications. Wills are subject to probate, which is the process of proving their validity in court. But depending on where you own assets, your loved ones may have to go through the probate process in multiple states, creating not only a hassle, but a delay in getting their hands on the inheritance you want them to have.
The nice thing about a living trust is that it isn't subject to probate. So it's worth considering one if you happen to own properties in different parts of the country.
2. You don't want your loved ones' inheritance to be delayed
The more complex your estate, the longer the process of probate is likely to take. This especially holds true if you have to go through probate in more than one state.
Since a living trust doesn't have to go through probate, using one could mean that your loved ones get their inheritance sooner. And even if they're not banking on that money per se, they might appreciate getting their hands on it in less time.
Keep in mind, too, that if you're excluding certain family members from your will, they might seek revenge by contesting it. A living trust could buy you some protection against that sort of situation.
3. You value your family's privacy
Some people are shocked to learn that wills are entered into public record as part of the probate process. This means that any old stranger can do their research and see exactly what assets your loved ones are inheriting.
If you don't like the sound of that, it pays to consider a living trust over a will. Since there's no probate with a living trust, you don't have to worry about random people knowing the details of your estate.
All told, there are lots of benefits to using a living trust in the course of your estate planning. It pays to sit down with an attorney who can help you decide whether this tool is right for you.
But also, talk to your loved ones about your options, and don't be afraid to have those open conversations. A 2024 Edward Jones survey found that 35% of Americans don't plan on discussing the transfer of wealth with their families. But talking through your estate planning choices could be a helpful thing for everybody involved.
