Benefits of living trusts

On Behalf of | Jul 27, 2016 | Trusts

Nevada residents who are planning to retire should be aware of the benefits of establishing a living trust. A revocable living trust makes it possible to designate assets that will be directly passed on to beneficiaries and avoid the cumbersome probate process. Assets such as government bonds, bank accounts and pensions also go directly to the beneficiary without getting locked up in probate, so a living trust may not be necessary unless other assets are at stake.

People who own vacation homes, out-of-state property and other properties that are subject to probate may benefit from a living trust. These trusts are also helpful in situations where one plans to disinherit an heir or leave controversial inheritances, such as giving one child more property than another. A living trust prevents the asset division from being contested in court.

Trustees keep the authority over all property managed in a trust. All living trusts must have a successor in the event that the trustee passes away. It is important to note that a living trust is not a replacement for a will. Living trusts without attached wills are subject to intestacy laws, which can affect the distribution process.

An estate planning lawyer may be able to provide guidance to someone considering setting up a living trust. In many cases, the property owned by a trustee is not subject to probate and there is no need to pay for a trust. An attorney can help the individual decide if a living trust would be worth while. Establishing a family trust could potentially prevent a lengthy court battle.