When Indiana residents are considering an estate plan, they can easily become confused. While many will want a simple will, others might need something more sophisticated like a revocable living trust. There are positives and negatives with this type of trust and it is wise to consider them beforehand.
A revocable living trust has pros and cons
Many can benefit from revocable living trusts, but it is critical to know the pluses and minuses. With a will, probate is necessary. It can be time-consuming and costly. Trusts eliminate the need for probate. The trust is in place while the grantor is alive and continues after he or she has died. The property will be transferred to whoever is named in the document. It also allows those left behind to have access to money immediately. In addition to avoiding probate, it renders guardianships or conservatorships unnecessary if the grantor becomes disabled. The trust names a successor trustee to oversee the grantor’s affairs. For many, privacy is of paramount importance and the trust documents are not a matter of public record.
There are potential problems with a revocable living trust. It can be costly financially and may take effort to organize. The probate costs will not be an issue, but transferring ownership as part of the trust involves new documents and dealing with various entities like banks, insurance companies and investment managers. There are certain assets that cannot be owned by a trust, so this must be considered. Finally, if there are disputes among heirs, there is more time for them to contest it than there is a will.
Professional assistance can provide estate planning guidance
Estate planning is essential, but people are frequently unsure of what is right for them. A will is easiest, but it is not always ideal. If the circumstances and individual needs are such that a revocable living trust is preferable, it should be fully understood beforehand. When thinking about how to pass property along to heirs, knowing the pros and cons of revocable living trusts might help with making an informed decision.