People often consider trusts to be asset transfer tools of the super wealthy. However, the truth is that trusts can prove to be a smart choice for people of average income too.
The true benefit of establishing a revocable living trust is that it allows your heirs to avoid a headache-inducing process known as probate. Probate is the court-administered procedure that is legally required in order to pass assets down to your children, grandchildren, or other designated heirs. The process often takes over half a year and legal challenges are quite common during this period. One can expect to receive a hefty bill too. For example, North Carolinians may pay close to $6,000 in court costs, even before lawyers’ fees. Probate also reduces your privacy, as it allows others to see the content of your estate.
If you set up a trust before passing away, you can avoid all the disadvantages mentioned above. Of course, should Congress change tax laws in the future, the trust may protect you then too. Please contact the Maitland & English Law Firm, PLLC if you would like to learn more about the benefits of trusts. We would love to help you and your family with your estate planning and trust-related needs.