There are a number of reasons why having a living trust in addition to a will can be a good idea.
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In a posting on Time Magazine’s money.com, someone wrote in and asked if he should keep his living trust since most of his family’s investments are in IRAs.
The columnist said that a living trust has advantages that a will cannot offer, and suggested the person who wrote in keep both the living trust and a will.
He said a revocable living trust is similar to a will in that it indicates how you want your assets to be distributed after your death and can be amended at any time.
The columnist said that while one should always have a will, a living trust is valuable in that it can help you settle your estate more quickly since your heirs will not have to go through the time-consuming and costly probate process.
A trust also provides backup investment advice since you must name a trustee to manage it. That person is in place in case something happens to you.
Thirdly, trusts can be set up for children, particularly those with special needs. You can have the money to go them as you want it to, not all at once as would be the case with a will.
The columnist said it would be foolish to get rid of the already-established trust since it has already been paid for. And he warned against putting IRAs in the trust since that would be counted as a withdrawal and subject to penalty.
If you have questions about estate planning, feel free to call us for a consultation at (626) 696-3145.
