A living trust can be beneficial in many ways. Many people believe that trusts are only meant for billionaires, but they can be advantageous to anyone with an income. They can help you manage your property, manage things after you pass away, and save time and money.
If you are not sure whether setting up a living trust would be the right decision for you or not, maybe learning more about them can help you. The best way to clarify your doubts is by consulting with a San Antonio trusts planning attorney.
Reasons to consider a living trust
- Avoid probate.
Perhaps one of the most common reasons why people opt for a living trust is because they want to avoid probate. Probate is a lengthy, time-consuming, and expensive process that nobody likes to go through. If there is a way you can avoid that, you should not leave the chance. Basically, anything that has not been put into a trust has to go through probate before they eventually reach its heirs. This process takes a long time, sometimes several years.
- Resistant to contesting.
Compared to a traditional will, a living trust is more challenging to contest. This protects you from jealous relatives who file unnecessary claims in order to receive a part of the estate. However, just because it is difficult to contest a trust does not mean it is completely impossible. One can still contest by proving one of the following things:
- The grantor was mentally incapacitated at the time when the trust was established.
- The grantor was under duress or “under the influence” when the trust was established.
- Privacy protection.
One of the many reasons people hate probate and try to avoid it is because when a will goes through probate, all your family’s financial information becomes public. This means that anyone who runs a background check can retrieve the information in your will. They can look up which assets were included in the will and who were the respective beneficiaries.
Setting up a trust in San Antonio does not only avoid probate but also protects the privacy of your family. This is especially important because there may be people who may try to take advantage of the beneficiaries.
- Asset protection for children.
If you want to protect your children’s assets, you can set up special trusts for them. You can make them “beneficiary-controlled” at a stated age. This will become your children’s gift and protect their assets in cases of divorce, predators, creditors, or a lawsuit.