In Indiana, people who are preparing their estate plans might want to consider creating a living trust. This type of trust account contains the grantor’s assets to benefit them during their life. When the grantor dies, the assets are distributed to the trust beneficiaries by the successor trustee. Grantors can change their living trusts’ terms or cancel them, meaning they are revocable. Living trusts offer several benefits that are described below.
Avoiding probate
When people die with or without a will, their families will normally have to go through the probate process. This is a court-supervised method of distributing a decedent’s estate after death, and it can be expensive and lengthy. Since probate matters are handled in court, they are also public. The expenses involved in probate can also eat into the value of the estate. When you create a living trust and transfer your assets to it, you can avoid the probate process. Assets held by living trusts are distributed outside of the probate process, making the distributions faster while maintaining your family’s privacy. Creating a living trust also allows your family to avoid the expenses related to probate after your death.
Helps during incapacity
If you sustain serious injuries or an illness that leaves you incapacitated, your living trust can protect you and your estate. The person you have named as your successor trustee can step in on your behalf and manage your affairs without the need for court intervention through a court-appointed guardianship or conservatorship. You can also dispute the finding of incapacitation to retain control.
When you draw up a living trust correctly, you will have a clear plan in place for how all of the assets of your estate should be handled. Creating a living trust can allow you to benefit from it during your life. When you pass away, it will automatically become an irrevocable trust, meaning its terms cannot be changed. Instead, your successor trustee will be required to follow the terms of your trust and distribute your assets to the beneficiaries you have designated.