What Are Some Common Misconceptions About Living Trusts?

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Living trusts are a valuable estate planning tool, but not everyone realizes that they benefit from setting one up. A Woodland Hills trust attorney from our firm can take a look at your estate and your assets to help you determine whether or not a living trust is a good fit for you.

Don’t People Need a Lot of Money for Living Trusts?

One common misconception is that living trusts are only for the wealthy. Not only is it not worthwhile to set up if you do not have a significant amount of assets, but it’s also expensive to set up and maintain. So what’s the point if you do not have a lot of money?

This is not really the case though. Many people can benefit from the use of living trusts, even if they are not among the extremely wealthy. A trust allows you to protect your assets and manage them. You can even help your family avoid the probate process if you set up your trust correctly and assign all of your assets to be passed down to specific beneficiaries.

It can cost money to set up living trusts, but they really are not all that expensive in the grand scheme of things. If you are already paying to have a will drafted or handling any other aspects of an estate plan, the extra cost to set up a living trust could be far outweighed by the benefits it offers you.

Don’t Living Trusts Complicate My Tax Returns?

Setting up a trust will not necessarily lead to extra headaches when tax time rolls around. With living trusts, you just need to file taxes as you normally would and use your own social security number. If your trust will continue to exist after you pass away, then it will need a separate tax identification number of its own. Otherwise, the complications are minimal and the benefits of using a living trust far outweigh any drawbacks.

Do I Need a Trust if I Have a Will?

If you plan to use living trusts and similar tools, you should be sure that you have a will drawn up as well. You do not necessarily need to use a trust if your will says who you want to pass down your assets to, but you may still be able to benefit from the use of a trust. This does not have to be an either/or situation. Writing a will and setting up a living trust could be the most effective way to safeguard your assets.

Contact Our Legal Team

So if you are ready to set up living trusts or take on any other part of the estate planning process, contact the Law Offices of Yacoba Ann Feldman. We can schedule a consultation and take the time to figure out which estate planning tools you could benefit from.

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