HomeUncategorizedNavigating the Discussion of Living Trusts with Your Parents

Navigating the Discussion of Living Trusts with Your Parents

Initiating a conversation with your parents about estate planning and the establishment of a living trust can be a delicate endeavor. It’s a talk that intertwines the practical with the emotional, involving the management of assets post-life. Here’s a guide to approach this significant topic with sensitivity and awareness.

Understanding the Need for a Living Trust

A living trust is a legal document that allows individuals to place their assets in a trust for their benefit during their lifetime, and then transfers those assets to designated beneficiaries at their death. Unlike a will, a living trust is not usually subject to probate, the legal process through which a will is validated, which can be costly and time-consuming. Moreover, it ensures privacy as it does not become a public record like a will. The trustee also has control over how their chosen beneficiaries use the assets, if they choose to specify.

Opening the Dialogue

Choose the Right Moment: Find a calm, private setting free of distractions to discuss the importance of future planning. Ensure all siblings or relevant family members are on the same page to avoid conflicting messages.

Express Your Intentions: Be clear that your concern stems from care and responsibility, not from curiosity or self-interest. Frame the conversation around their wishes and how a living trust could safeguard their intentions.

Educate and Inform: Present the benefits of a living trust, such as avoiding probate, maintaining privacy, and potentially reducing estate taxes or managing assets in the event of incapacity.

Listen Actively: Encourage your parents to express their desires and any concerns they may have. Acknowledge their feelings and provide reassurance that their control over their assets remains intact.

Professional Guidance: Suggest consulting with an estate professional who can answer their questions and tailor a living trust to their specific needs.

Fostering Understanding

At GetDynasty, we offer a simple way for you to get started on your trust for free.  We walk you and your parents through the process by explaining all terminology and the reason behind each step. Remember, a living trust is ultimately a tool of empowerment, allowing them to make clear decisions about their estate that respects their wishes and provides for their loved ones. Discussing a living trust with your parents is about protecting family legacy and ensuring their wishes are honored. Click here to get started.

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What is a Trust?

A Living Trust is a financial tool that lets you plan, organize, and protect your life. It’s a personal entity that allows you to add assets and plan out your inheritance. Eliminating legal battles, cost, and time spent by your loved ones. 

Think of it like a personal LLC that you put everything you own in. Except it doesn’t protect you from liability like an LLC does, it protects you from probate and conservatorship. 

Probate is the complicated court process (12-18 months) where a judge decides what happens to your assets after you die, become incapacitated, or are “deemed” incapable. Creating a living trust allows your assets to completely circumvent probate and immediately transfer to your loved ones. 

In addition to being able to name heirs (your beneficiaries), a Trust also allows you to assign someone to manage it (your successor trustee). Instead of going through probate, your Successor Trustee takes control of the Trust, handles your affairs, and distributes your assets according to your instructions. The person you select as Successor Trustee should be your most trusted person. Like a best friend or closest family member.

At Dynasty, we believe everyone should have a Living Trust. If you have children, assets, or plan to acquire assets in the future, you should create a Trust. That way when you buy your next home, open a bank or brokerage account, get startup shares, etc. – you can immediately title them in your trust.