FAQ: What Are the Benefits of a Lifetime Trust?
A lifetime trust is a powerful estate planning tool that takes effect while you are still alive. It provides flexibility, control, and important protections that a simple will cannot offer. Key benefits include:
1. Avoiding Probate
Assets in a lifetime trust transfer directly to your beneficiaries without the delays, costs, or public process of probate. This helps your family settle your affairs faster and with less stress.
2. Maintaining Privacy
Unlike probate, which is a public court process, a lifetime trust keeps your financial information and your beneficiaries private.
3. Continued Control Over Your Assets
You decide how and when your beneficiaries receive their inheritance. This is helpful for young adults, blended families, spendthrift protection, or long term financial planning.
4. Protection During Incapacity
If you experience a medical event or cannot manage your affairs, your successor trustee can step in immediately. This reduces the need for court involvement and ensures your bills and financial matters are handled smoothly.
5. Keeping Assets in the Family
A properly drafted trust can help protect your assets from divorce, creditors, and misuse, preserving wealth for future generations.
6. Flexibility to Update as Life Changes
Your trust can be updated as your family grows, your finances change, or your goals evolve, ensuring your plan stays aligned with your needs.
