For many people who realize it's time to put together some estate planning documents to protect their assets, a living trust provides both protection and flexibility. While there are many kinds of trusts, most offer protection at the expense of flexibility, or vice versa.
Living trusts are not as ironclad in their protections as some other types of trusts, but many estate planning professionals and individuals choose living trusts because they often offer an even distribution of protection and flexibility. They can also provide security for assets without removing them completely from the control of the trust creator.
The advantages of living trusts are numerous. They include:
- More user-friendly structure and operation for those unfamiliar with east planning
- Less confusion around your wishes
- Protection against several different kinds of taxation
- Strong protections that deter legal challenges
One of the most commonly touted advantages of a living trust is that you can maintain the ability to alter the terms of the trust if you decide that your initial terms do not truly suit your needs any longer. Other trusts may require that you establish your trust's terms when you create it and leave them unaltered indefinitely. If you believe that your financial priorities may change in the future, a living trust may be a good fit for your needs.
Consider your estate planning very carefully. The choices that you make now may bear fruit or complicate your life for years to come. You must also take great care to make sure that you have all the guidance and legal resources to properly build the trust and operate it. Some careful, diligent attention can save you years of difficulty and bring peace of mind like few other things can.