Are you worried about your estate and other assets after your death? Do you want the beneficiaries to manage their inheritance in a proper way? Retirement is not a piece of cake! From health insurance to asset management, senior citizens have to look after many things. If you don’t register for the government schemes like Medicare and Living Trusts, you might not be able to live a stress-free life. While Medicare offers medical assistance, Living Trust offers better management of an individual’s assets. You can protect your assets and have full control over them even after your death.
Let’s see how–.
As already mentioned, a living trust is a legal entity which offers complete ownership of the assets of an individual. It is known as Revocable Living Trust. The person who creates the trust is known as the grantor. A grantor can also serve as a trustee. Many elderly perceive it as a ‘Rich People Stuff’. However, it can be an effective tool to manage your estate. You can avoid extra costs on probate and gain full privacy over your trust. Furthermore, you can easily prepare your asset for an easy transition after you die.
However, it is not the ‘right’ plan for everyone. There are certain advantages and disadvantages of Revocable Living Trust. Before we begin, if you want to get a Revocable Living Trust in South Jersey area, visit Scott Counsel official website.
Now let’s dig in–.
Advantage # 1– Probate can be avoided.
One of the greatest advantages of a Revocable Living Trust is avoiding probate. By funding the trust, you can shun from lengthy probate proceedings. This is particularly beneficial for people who own estates in multiple states. After the death of the grantor, the beneficiary will have to attend different probate proceedings. This can be a hectic procedure.
Advantage # 2– Privacy is maintained.
Probate proceeding do not offer privacy. It is public and anyone – anytime can look at your documents. Many times, criminals visit the courthouse to check the will of an elderly. Some jurisdictions upload documents online. This can be a huge threat to the beneficiary and grantor as well. Many crimes have occurred due to the lack of privacy in probate proceedings.
Disadvantage # 1– Upfront costs aren’t pocket-friendly.
There are many costs involves in setting up a Revocable Living Trust. Even after forming a trust, you are liable to create new deeds in order to transfer the assets. Although it has initial costs, Revocable living trust South Jersey can help avoid expensive court-supervised guardianship to the beneficiary when you become disabled.
Disadvantage # 2– Funding can be a problem.
Funding a trust is a long procedure. You will have to contact banks, investment, and insurance companies, and transfer agents to change the account ownership and update beneficiaries. It can be exhausting as you may have to update beneficiaries, issue new stock certificates, and retitle cars and boats. Make sure not to skip funding a trust. Failure to which can result in loss of time and money.
If you are tackling something as big as asset management, seek a professional for a better idea. You can call a professional from Scott Counsel for Revocable Living Trust in South Jersey.
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