3 reasons you should seriously consider a living trust to pass your inheritance to your family

This article is for educational purposes only and does not constitute legal advice. Please contact an attorney for guidance regarding your individual situation.

Two in three Americans do not have an estate planning document, according to a YouGov survey of 2,400 people for Caring.com’s 2023 Wills and Estate Planning Study.

If you are one of them, your assets may end up in court and eventually distributed in a way you did not want.

And if you’re a mid-career professional with a spouse and children, estate planning may not be top of mind in your busy life, but it’s never too early to make a plan.

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The terms “living trust” and “revocable trust” are generally used interchangeably. Here are three reasons why using such a trust in both names could be a way to advance your estate planning now.

1. Control now and later

A living trust appoints a trustee to distribute the assets you place in the trust now and after you pass away. You can become its trustee while you are alive and can nominate a successor trustee to handle final distributions. And until then, you can easily undo what you originally said in order to modify your trust in response to changing conditions and circumstances. That’s why it’s called “cancelable.”

2. Probate avoidance

Unlike last wills and testaments, trusts generally do not need to go through probate. Probate is a public process that can take time and money, even if it is uncontested. Many people use trusts to avoid the probate process. Unlike a will, a trust is also a personal document.

3. Pack everything you want

Along with your material assets, you can include your wishes regarding your physical self in a living trust, including issues such as whether to allow resuscitation, a feeding tube, or a ventilator.

However, it is generally better to state your wishes regarding health care in a professional document, such as a power of attorney or health care directive. Consulting with an attorney can be very helpful in this area.

Documents you can trust in your most difficult moments

End-of-life planning can seem emotional and burdensome, but a living trust’s unique control, flexibility, and privacy can simplify matters for those left behind and for you along the way.

Although they typically cost more upfront than a simple will, a simple living trust can be surprisingly affordable while limiting the surprises your loved ones may experience as they navigate this difficult time.

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There are documents you can do yourself, but it’s best to consult with an experienced real estate attorney about all of this. That’s because a carefully crafted living trust ensures that your assets pass safely to your heirs and avoids legal problems.

Despite the initial time and cost, having this plan in place can be a valuable gift to your family’s future, limiting conflict and uncertainty while providing your loved ones with stability and financial security during an emotionally charged time.