Do You Need A Living Trust?

Many people like to have both a living trust and a will to address the issue of probate proceedings. Probate court can stretch on for a very long time, which can make things difficult for your family if they need access to your assets right away. However, not everyone needs a living trust to help manage these assets. Here are some indicators that you can use just a will to manage your property upon your death.

You are still in middle age.
If you are healthy and in middle age, having a basic will is usually completely fine for managing your assets. Things can always be changed later on if need be, but since it is unlikely that you will pass on soon, it doesn’t make sense to spend the time or money putting together a complicated living trust when a traditional will is sufficient.

Many of your assets are jointly held.
If most of your assets are held in both you and your spouse’s name, it doesn’t make sense to put together a living trust. Your property will legally transfer to your spouse right away upon your death, which means that you won’t have to worry about probate. You can address any other pieces of property through a traditional will once you pass on.

Your assets are small.
Once you put things into a living trust, there are certain restrictions put into place, which means that you may not be able to access them or make changes to them in the same way. If you don’t have a huge amount of money saved up or any high-value assets, then it doesn’t make sense to put them into a trust just yet. However, if your portfolio has a high value, then you should consider using a trust to ensure that your family avoids probate and gets the money quickly after your passing.

You don’t want to spend too much time putting together legal documents.
If you are very busy and don’t have the time or resources to devote to putting together a living trust, then it’s better to just put together a basic will, which can be written quickly and with very minimal assistance. Living trusts are much more complicated than wills, which means that you’ll need more time to devote to putting it together, and you’ll likely need counsel from a lawyer who specializes in these kinds of documents.

You don’t want to worry about having to modify the trust.
Generally, living trusts require much more upkeep than a will. Since putting assets into a living trust places legal restrictions on what you can do with them, many people who have these trusts find themselves going back and modifying them several times throughout their lives to make necessary changes. This can be very time-consuming, and it can also cost quite a bit if you are seeking legal counsel every time you make a change to the document. Wills are much easier to create and can generally stand for much longer without needed to be changed.

If you aren’t sure whether you need a living trust just yet, the best strategy is to start off by creating a will, and then create a trust later on in life if the need arises. With this strategy, you’ll ensure that your property goes to your preferred beneficiaries if you do happen to pass on, but you won’t have to spend the time and money putting together a complicated living trust if you aren’t ready for it. If your situation is complicated and you aren’t sure what to do, consider consulting a lawyer for more advice.