A trust is a legal arrangement where one party, known as the settlor, confers assets to a second party, the trustee (often themselves), to manage these assets for the benefit of a third party, the beneficiary. A living trust is created and managed while the settlor is still alive. Establishing a living trust as part of your estate plan has various advantages, and our team at The Law Office of Paul A. Rossi, LLC, is here to help you understand why this option may be beneficial for you. Contact our firm for an appointment where you can receive case-specific guidance.
Probate is a legal process that takes place after someone’s death. It involves settling debts, paying taxes, re-titling assets, and distributing them to beneficiaries. This process can be expensive, time-consuming, and emotionally draining for the grieving family. With a living trust, your loved ones won’t have to go through probate. The trustee of your living trust has the authority to distribute your assets and settle your estate without involving the court.
Creating a living trust minimizes the risk of disputes over your estate. It’s not uncommon for loved ones to challenge the validity of a will, particularly if they suspect the deceased was mentally incompetent at the time of creating it. However, living trusts are seldom challenged. Since you stay actively involved with the trust until your death, it’s difficult for anyone to provide substantial evidence of incompetence.
The costs associated with probate and potential legal disputes over an estate can accumulate into thousands of dollars. By establishing a living trust, you help your family avoid these unnecessary expenses. The money saved can then be used for more important matters, such as fulfilling your last wishes or supporting your beneficiaries in their time of need.
If you become incapacitated, the person named as the successor trustee in your living trust can immediately step in to manage your assets. This action can take place without the need for court approval, saving your family from the stress of legal proceedings during an already challenging time.
Living trusts ensure your assets are distributed according to your wishes. By clearly stating who your beneficiaries are and what they are to receive, you can prevent potential misunderstandings or disputes among your loved ones after your death.
Living trusts offer numerous advantages, making them an essential tool in estate planning. They provide a clear roadmap for the distribution of your assets, protect your family from the burden of probate, minimize the risk of disputes, provide financial savings, and ensure protection during incapacitation.
If you’re considering setting up a living trust or would like to learn more about how it could benefit your estate planning, don’t hesitate to contact us at The Law Office of Paul A. Rossi, LLC. We’re committed to helping our clients navigate through their legal matters with compassion, discipline, and a strong work ethic. Contact us today for a consultation at our office in Lowell.