Trusts and wills are important legal instruments in estate planning because they help individuals secure their assets and guarantee their ultimate wishes are carried out. While wills have long been the standard method of estate distribution, trusts are becoming more popular due to the various benefits they provide. Whether you live in Nevada or have assets there, here are five benefits of a trust over a will for your estate planning requirements.
Probate Avoidance
Probate is a court-supervised process that can be time-consuming, public and costly. It involves the distribution of a deceased person’s estate according to the terms of their will. A living trust, however, allows assets to be distributed directly to beneficiaries without the need for probate. By placing your property in a trust, Nevada Trust Company as Trustee, can follow your instructions and distribute assets efficiently, saving time and potential expenses for your estate.
Cost Savings and Efficiency
While creating a trust may initially involve higher costs than drafting a will, it can lead to significant savings in the long run. By avoiding probate expenses, your beneficiaries can receive their inheritances much faster, reducing the time frame from months or years to just weeks. Additionally, living trusts are less likely to be contested compared to wills, further protecting your estate from unnecessary legal expenses.
Enhanced Privacy
A trust offers a higher level of privacy and confidentiality compared to a will. The details of a trust remain private between the involved parties and do not become part of the public record. In contrast, a will is subject to public scrutiny, meaning anyone can access the information about the distribution of your estate. By having a living trust in place, you can keep your financial matters and beneficiaries’ details private.
Protection in the Event of Incapacity
One of the benefits of a trust over a will is its ability to provide protection in the event of incapacity. Should you become unable to manage your affairs due to illness or other circumstances, the person you have designated as the successor trustee can take over without the intervention of a court. This avoids the need for a court-appointed conservatorship, allowing for a smoother transition of control and protection of your assets.
Certainty and Peace of Mind
By creating a trust, you establish a clear plan for the distribution of your assets, ensuring that your final wishes are carried out exactly as you desire. This helps prevent unintended consequences, such as unintentionally disinheriting someone or failing to provide care for a loved one with special needs. Knowing that your estate will be handled according to your instructions can bring you peace of mind today. Additionally, the existence of the trust provides comfort to your loved ones during an already stressful time, as everything has been laid out clearly for them.
Benefits of a Trust Over a Will: Is it Worth it?
The choice between a will and a trust depends on various estate planning goals and factors. These include your budget, the size of your estate, the need for accessing assets during your lifetime, and the complexity of distribution wishes with multiple beneficiaries and different types of assets. For many individuals, creating a will is the simplest, quickest, and most cost-effective option. However, for others, a trust might be more suitable. A will is preferable if you wish to retain ownership of assets until your death, require a rapid estate plan set up, or seek a straightforward and affordable solution. On the other hand, a (please update the verbiage in this link to say Trust instead of Living Trust) living trust is a better choice if you desire privacy over your assets, own multiple real estate properties, have substantial assets, want protection from creditors, or prefer greater control over posthumous asset distribution.
