A trust could help you transfer your property and assets to your heirs quicker than through a will. As noted by Kiplinger’s Personal Finance, a will requires probate court involvement that oversees the transfer of assets to heirs.
If you own complex properties, for example, probate may last several years until your heirs take ownership. By creating a trust, however, you may transfer your property to it during your lifetime.
Assets that you may transfer to a living trust
A living or revocable trust offers property owners the ability to protect their assets both while alive and after death. Once executed, you may transfer certain types of assets to your trust. Real estate that you own may transfer to a trust and could include your current residence.
Trusts may hold deeds to oil, gas or mineral rights. A living trust could also contain financial assets such as bank or money market accounts. If you own stocks or bonds, you may transfer them to your trust. To add funds after death, some individuals name their trust as a beneficiary to their life insurance policies. A trust could include specific instructions outlining how a trustee could spend or use the funds.
Trusts could bring property owners more advantages than wills
If you become ill or incapacitated, your trust’s documents may name a trustee and outline instructions for that individual to take over your affairs. After your death, the beneficiaries named in your trust documents may benefit from your trust’s assets without going through probate.
Wills become public records when submitted to probate. Because trusts remain private, your assets may stay private after you die.