you estate to avoid playing estate tax.
1. A will is basically a document that distributes your estate assets, but it needs an official probate process, which can take as long as two years. That's why nowadays people are advised to do a living trust over a simple will.
2. Another advantage of a living trust is that it allows the testator to control how his estate assets are used even after his death. This is especially useful when you have small children.
3. Living trust is also a good asset protection tool for your beneficiaries. Consider the following scenario: You have $1,000,000 and you pass away. Unfortunately, your surviving spouse is invovled in a terrible car accident, where she is at fault and is liable for $1,000,000. If you leave everything to your wife by will, she will have to pay it to the victim and there will be nothing left for her. However, if you put it in a living trust, the living trust becomes irrevocable after your death. The victim is only entitled to any distribution that your wife is getting from the trust.
Hope it helps
1. A will is basically a document that distributes your estate assets, but it needs an official probate process, which can take as long as two years. That's why nowadays people are advised to do a living trust over a simple will.
2. Another advantage of a living trust is that it allows the testator to control how his estate assets are used even after his death. This is especially useful when you have small children.
3. Living trust is also a good asset protection tool for your beneficiaries. Consider the following scenario: You have $1,000,000 and you pass away. Unfortunately, your surviving spouse is invovled in a terrible car accident, where she is at fault and is liable for $1,000,000. If you leave everything to your wife by will, she will have to pay it to the victim and there will be nothing left for her. However, if you put it in a living trust, the living trust becomes irrevocable after your death. The victim is only entitled to any distribution that your wife is getting from the trust.
Hope it helps