Home › FAQ's › Why should I have a Living Trust?

Why should I have a Living Trust?

There are several reasons why someone might choose to have a living trust. Some of the most common reasons include avoiding probate, reducing estate taxes, and protecting assets from creditors.

A living trust is a legal document that allows you to transfer ownership of your assets to a trust during your lifetime. This means that when you die, your assets can be distributed according to the terms of the trust, without the need for probate. Probate is the legal process of transferring ownership of your assets after you die, and it can be time-consuming and expensive. By using a living trust, you can avoid this process and ensure that your assets are distributed quickly and efficiently.

Another advantage of a living trust is that it can help to reduce estate taxes. Depending on the size of your estate, a significant portion of it may be subject to estate taxes when you die. A living trust can help to reduce the value of your taxable estate, which can save your loved ones money.

Finally, an irrevocable living trust can also protect your assets from creditors. If you have significant assets and are concerned about the possibility of being sued, a living trust can help to protect those assets from being seized by creditors. This can provide peace of mind and ensure that your assets are passed on to your loved ones as you intended.

Don't have a Living Trust yet? Get started today.

It only takes a few minutes to create and can be updated easily any time with our Digital Workflow.

Create your free Trust

Related Articles

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.