When Connecticut residents are contemplating the future, how best to protect loved ones while preserve as much of their assets as possible, there are many factors that should be considered. The individual circumstances will dictate how to proceed. For many, a simple will is sufficient. However, more complex cases might make a vehicle like a trust necessary. In some instances, a living trust will suit the person’s needs. When thinking about a living trust (also referred to as a revocable trust), it is wise to be fully aware of what it can do and who will benefit from it.
Why a living trust could be useful
In general, there are two basic reasons why a living trust could be preferable to other alternatives. First, it can address concerns about probate. Second, it accounts for the possibility of the person becoming incapacitated. Probate is when a testator’s will is proven and the property is distributed. This is not as simple as it sounds as the person’s debts must be paid, taxes must be filed, creditors must be notified, assets must be accrued and assessed and more. It can also take a significant amount of time to complete and disputes among heirs and prospective heirs are common. If assets are in a trust, they will not be subject to probate. The trust will detail how the property is passed to those named.
Incapacity is a frequent concern for people – especially those who have substantial assets or are business owners. If a person becomes incapacitated and cannot oversee his or her own finances, there can be a successor trustee named. That person will manage the assets in the trust and a guardianship will not be needed. Provided the person can handled the trust, that person will be allowed to do so. It is also legal for the trust to be revoked with the assets returning to the person.
Having legal assistance can be essential with a living trust or other options
There are many benefits to living trusts, but any estate planning strategy a person uses is contingent on their circumstances and goals. The living trust provides a substantial amount of control. This could be useful to many people. When thinking about how to craft an estate plan, having experienced legal advice may be critical. Calling for a consultation can provide guidance, advice and help in how to proceed.