Many people are recommended to start living trusts when they begin planning their estate. Living trusts can be beneficial for many people who are looking to avoid losing high portions of their estate in the probate process and create a legacy for their loved ones. There are many benefits that come with starting a living trust, but before starting one, it is important to understand more about the wide variety of estate planning tools and strategies that are available to you.
Before starting a living trust, it is vital that you conduct adequate research and consider whether doing so is a lucrative and appropriate decision based on your specific financial and personal circumstances. The following blog will address what factors might indicate that setting up a living trust is not ideal for you.
You do not have a large estate
One of the most obvious benefits of setting up a living trust is the fact that it helps people to avoid the probate process. Going through probate can take a long time and it becomes very costly when a large estate is being processed. If you have a very large estate, it is worth investing time and money up front so that some of your largest assets can avoid the probate process by being put into a living trust. If you do not have a very large estate, spending this time and money may simply not be necessary.
You are married
Single people may find it beneficial to set up a living trust for a person that would not necessarily be a natural beneficiary. However, if you are married and want your spouse to inherit all assets, this will happen automatically and no action needs to be taken.
You are under the age of 55
Living trusts take effort and money to maintain. If you are under the age of 55 and you consider yourself to be healthy, it may be unnecessary to create a living trust so early on, and it might be something to consider in the years to come.
While living trusts may not be the best solution for everyone, there is an estate planning solution for every need. Therefore, it is wise to take action in planning your estate in the state of New York.