Business Law

A Few Reasons to Have a Trust Fund Set Up for Your Loved Ones

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No one lives forever, but at the same time, no one wants to think about their death. However, it is the right thing to do. In fact, it is the responsible thing to do. Estate planning is something everyone should engage in, and perhaps the most important part of estate planning is to create a living trust. The following are a few reasons to consider a living trust rather than a will.

It avoids the expense of probate

When you die, even with a detailed will, your estate will need to go through probate court. It is here that a judge will look at your finances at the time of your death to determine what liabilities you still had and make sure creditors and others who have a claim on your assets get their money. After this, the assets will be dispersed to the beneficiaries in your will. The problem with this is that it costs money to go through this process. At the very least, the executor of your will needs to hire an attorney, at least for the purpose of consultation, but the process of probate can hit snags with people making claims on your assets. This means even more legal expenses.

It means your heirs get your assets faster

Probate court is not only expensive, but it takes time. Often your assets are needed by your loved ones today. They cannot wait. By having a living trust, they will have their inheritance quickly. A revocable trust is a living trust that allows a trustee to pay any claims against your estate. This is done in a short time frame, and your heirs won’t have to wait until everything is paid off. The trustee knows which liabilities need to be paid and takes care of it. This bypasses the need for a judge.

If you’re interested in creating a living trust for your loved ones, you need to consult with an estate planning attorney. An attorney at law beaverton or can give you information that applies to your specific finances.

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