The Benefits of a Living Trust Over a Will

When planning your estate, it’s important to understand the range of tools available to you. Two common options are living trusts and wills. A will is a legal document that details how your property should be distributed after you die. In contrast, a living trust handles your assets while you’re alive and specifies how they will be distributed after your death. While both serve to pass on your assets, they do so in different ways.

At John H. Ruby & Associates, we focus on helping people like you meet their estate planning goals. Call us at 502-895-2626 to get started.

Avoiding Probate

Probate is the legal process where a will is reviewed and validated by the court. This process can be long and expensive, involving court fees and legal expenses. One major benefit of a living trust is that it can help you avoid probate entirely. When you set up a living trust, you transfer your assets into the trust, so they don’t go through probate when you pass away. This means that your beneficiaries can receive their inheritance faster and with fewer complications. By bypassing probate, a living trust can save your loved ones both time and money.

Privacy and Confidentiality

Unlike wills, which become part of the public record once filed in probate court, a living trust keeps your estate details private. This means that information about your assets and beneficiaries remains confidential. Privacy can be particularly important if you prefer to keep your financial matters out of public view. With a living trust, your loved ones can avoid unwanted attention and potential disputes over your estate. This added layer of confidentiality ensures that sensitive information stays within your family and trusted individuals.

Time and Cost Efficiency

Settling an estate through a will can be a slow and costly process due to probate. The duration can vary greatly, sometimes taking several months to years, depending on the estate’s complexity and the court’s schedule. In contrast, a living trust allows for a quicker and more efficient distribution of assets. Because the assets are not subject to probate, beneficiaries can receive their inheritance much sooner.

Flexibility in Estate Planning

A living trust offers significant flexibility in managing your estate. One of the key advantages is the ability to update the trust as your circumstances or wishes change. For example, if you acquire new assets, have changes in your family, or decide to adjust how your assets are distributed, you can easily amend the trust. This is especially true for revocable trusts, which allow you to make modifications or even revoke the trust entirely during your lifetime. This adaptability ensures that your estate plan can evolve alongside your life, providing a sense of security that your wishes will be honored no matter what changes occur. This flexibility can be crucial in ensuring your estate plan remains current and reflective of your intentions.

Managing Assets During Incapacity

If you become unable to manage your own affairs due to illness or injury, a living trust can play a vital role. Unlike a will, which only takes effect after your death, a living trust can provide for the management of your assets during your lifetime. In the event of your incapacity, a successor trustee—someone you have chosen in advance—can step in to handle your financial matters. This avoids the need for a court-appointed guardian, which can be a lengthy and stressful process.

The successor trustee can manage your investments, pay your bills, and take care of other financial responsibilities according to your wishes outlined in the trust. This ensures that your affairs are managed smoothly and in line with your preferences, whether or not you are able to communicate them yourself. This kind of proactive planning can help prevent financial mismanagement and protect your assets from being mishandled during a difficult time.

Choose John H. Ruby & Associates for Your Estate Planning

When you’re ready to start protecting your assets and planning for the future, our team is here to help you. It all starts with an in-depth consultation. Contact our firm online or call us at 502-895-2626 to schedule a consultation and find out how we can help you.