When it comes to estate planning in Connecticut, there are a few different options to choose from. Some of the most common ones are living trusts and simple wills.
Living trusts
Usually, a living trust is set up by people who have a large estate. This type of trust can be revocable or irrevocable. A revocable living trust can get changed at any time while an irrevocable living trust cannot be changed once you create it.
One of the benefits of a living trust is that it can avoid probate, which is the legal process of distributing a person’s assets after they die. This can be a lengthy and expensive process, so avoiding it can be a big plus. Another benefit of living trusts is that they can help to protect your assets from creditors. If you set up an irrevocable trust, your assets may be protected from creditors even if you become bankrupt.
To set up a living trust, you will need to transfer ownership of your assets to the trust. You can do this by changing the title of your property to the trust’s name. You will also need to appoint a trustee who will manage the trust after your death.
Simple wills
A simple will is a document that states how you want your assets to be distributed after you die. You can use a simple will to leave your property to your family, friends or charities. You can also use it to appoint a guardian for your children.
One of the benefits of a simple will is that it is relatively easy to create. You don’t need to transfer ownership of your assets to the will, so there’s no need to change the title of your property. You also don’t need to appoint a trustee.
Another benefit of a simple will is that you can change it at any time. If you want to change who you leave your assets to, you can simply update your will.
One of the disadvantages of a simple will is that it may not protect your assets from creditors. If you owe money to creditors, they may be able to claim your assets after you die. Another disadvantage of a simple will is that it can go through probate, which means that everything in it will be a matter of public record.
So which one is right for you depends on your situation. If you have a large estate, you may want to consider a living trust. On the other hand, if you have a small estate or you want to be able to change your will easily, a simple will may be a better option.