Why a Living Trust is Needed For Investment Protection

A living trust is something that should brook no argument if you are a sensible investor, have a family, are single, or any of these things. In other words, this trust will be needed to protect your investment after your eventual demise. The event happens to all of us and the only thing we can do is to prepare meeting the said eventuality. A trust can be used to do many things and can certainly solve a lot of problems, however, the living trust trumps them all for the following reasons, especially in terms of protecting your hard-earned investments.

Avoiding probate

Probate can be costly and damaging to the parties involved. The process can be long and drawn out, not to mention embarrassing and psychologically tiring for the bereaved family. The process is relatively simple, especially when done early on and with proper hindsight. Transferring all your assets to a trustee with capable financial advisors will ensure that the transition of your properties will not drag your family issues out in the open and prevent any squabbles, if there are any.

Another benefit of having a living trust with regards to probate is that you ensure your family privacy is safeguarded. Probate is not only drawn out but it is a matter of public record. An inventory or a listing of your assets in public view may not be a good thing, especially if you have other lawful obligations that need to be fulfilled. A living trust is a private document and cannot be opened to the public just by anyone.

Manage distribution even when you are gone

It is a sad fact that when you are successful with money matters, your child or children may not be. There are a lot of precedents to this and probably why trusts are quite popular in the first place. Although not all the time, there are instances where your adult kids might need saving from themselves. They may have issues or are just plain bad with money, but whatever the case may be, a living trust can help facilitate the distribution of money through your child’s foreseeable lifetime as needed. 

Keep it within the family circle

In this scenario, a living trust will ensure that your hard-earned assets will stay within the immediate family. Your spouse may find another love and marry again, your children may do the same as well, and this will open a path for a perfect stranger to have a piece of your property. While this may seem selfish, you are just watching out for the welfare of your family after you are gone. A well-executed trust will make it impossible for people who ingratiate themselves into your family circle at a later time — when you are no longer there to take care of things — to take advantage. Putting your assets in the care of a professional trustee will prevent some of your assets from being given away through marriage or other means after your demise.

Self-preservation and protection

You might have the wrong idea that only people with a family can benefit from a living trust, but this is not the case. If anything, those people that have no family or live by themselves but acquire properties will benefit more from a living trust. A successor trustee’s services can be retained to take over your care in the event of health problems that may cause you to be incapacitated. This would be ideal for those who are single, or those who do not have children or life companions. For these situations, you will need someone you can trust to provide for you in the event that you can no longer do so for yourself.

Making money is an ongoing process, and whether you convert it into properties or whatever asset you may have procured, holding on to it is impossible because we have a finite time on this planet. It can only be given away and a living trust is one of the most effective ways to ensure that your wealth reaches the intended recipients.

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