NOW IS THE TIME TO CREATE A LIVING TRUST FOR YOU AND YOUR FAMILY!
Most people understand it is important to plan their estate, but they haven’t made it a priority and never seem to get around to it. Revocable living trusts can be expensive, but I wanted to let you know that I am offering estate planning at very affordable prices, so you can get around to it. Establishing a plan for how your estate will be distributed when you pass will save your family time and money and is one of the best gifts you can give your loved ones.
Why you need a living trust.
Creating a revocable living trust prevents your family from going through the headaches of probate court. Probate court is costly, time-consuming, but completely unnecessary if you have a living trust. Also important to think about, without a trust, up to fifty percent of a person’s wealth may be lost to inheritance and estate taxes.
What is the difference between a will and a living trust?
- All wills go through the probate court. A living trust does not go through the probate court and so relatives do not have to go through the court process.
- Unlike a will, which becomes part of the public record, a trust remains private.
- The average person makes four changes to their will in their lifetime, which can be costly. Making changes in a living trust is much simpler and cheaper than a will.
Here is what is included in the Revocable Living Trust:
- Living Trust
- Durable Power of Attorney
- Utah Health Care Directives
- Pour Over Will
Living Trust: A legal entity you can use to determine who will get your property when you die. Most living trusts are “revocable,” meaning that you can change them as your circumstances or wishes change. Keep in mind that with a trust, you still maintain control in what you sell, buy, transfer, and borrow with your assets.
Durable power of attorney: Establishes who can make financial decisions for you if you become incapable of doing so for yourself.
Utah Advanced Healthcare Directive (living will): Establishes who will make medical decisions for you if you become incapable of doing so for yourself.
Pour over will: Establishes guardianship of minor children and makes sure items not initially put into your trust will get put into your trust when you die.
BENEFITS OF AVOIDING PROBATE
Essentially there are four main benefits to avoiding probate.
1. Probate is expensive. Some of the payments in probate include commissions paid to the executor or administrator, fees paid to the attorney representing the executor or administrator, and court-related costs such as filing fees. In addition, appraisal fees, tax return preparation costs, tax planning fees, and sales expenses are frequently incurred in connection with a probate.
2. Delay. Probate is a very time consuming process that takes a significant amount of time as opposed to alternative estate planning methods.
3. Psychological aspects. As mentioned above, probate takes a very long time and during the probate process, family and friends are continuing reminded of their lost love one for a longer period of time… potentially increasing the period of grieving.
4. Publicity of estate. Because probate is a court proceeding, all of the assets in the estate become part of the public record and are accessible to the general public.