Many people think they need a Living Trust so their assets will pass to their heirs easily and without tax. Here are a few facts to ponder when deciding if you need a Living Trust.

There will be no delay or expense of probate with a Living Trust.
True enough but if your titling of assets is done properly, everything may pass without going through probate. Any account with a beneficiary attached avoids probate, as do accounts that are joint or have the addition of “in trust for”, or “Payable on Death” after the joint designation.

You will save on all of the administration costs associated with probate.
A Living Trust does avoid the filing and court fees; however, the Trust may still be subject to an Executor’s fee and Lawyer’s fees. Many Executors are family members and will waive the Executor fee if there is not too much work to be done in settling the Estate. If an Attorney’s advice is needed, you will not be able to avoid those fees.

Your heirs can receive their distributions faster with a Living Trust.
Perhaps, assuming that your assets are not very complicated or your Trust does not establish a Postdeath Trust that dictates the distribution.

You will save taxes with a Living Trust.
If you have a Revocable Living Trust, you will not save anything in taxes. You still technically own and have the rights to the assets in the trust. These assets will still be subject to any federal and/or state death tax that may apply. Tax saving provision may be written into your trust to offset the tax.

A Living Trust can be a wonderful tool. Make sure it is written as you wish it to be and that you and your heirs understand the trust.

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