When to Make a Living Trust in Virginia
A living trust is an estate planning instrument that ensures that your money and assets go to your chosen beneficiaries when you die. No one likes to think about dying, but you must do so in order to be sufficiently prepared for the unavoidable. Putting a solid estate plan in place can ensure that your family is well provided for after you are no longer here.
Living Trust vs. Will
Most people use a living trust or a Will as their foundational estate planning document. Both are useful estate planning tools, enabling you to dictate what happens to your estate after you pass away. But with a living trust, you can do much more.
A Will may be enough if you own few assets or plan to leave everything you own to your spouse. But, if you are looking for additional protection for your assets, setting up a living trust may give you the financial peace of mind you desire.
Is Now the Right Time to Make a Living Trust?
There is no right or wrong time to make a living trust. It all depends on your specific circumstances. Now may be the right time, or it may be best to consider other estate planning options and leave the trust for later.
To determine the right time for you to make a living trust, we advise you to consult with an experienced Virginia estate planning lawyer. The right lawyer will be able to evaluate your unique circumstances to determine if a living trust is the best estate planning option for you and your family, and when you should set it up.
Many people mistakenly believe that a living trust is only for older people. But younger people can benefit from a living trust in much the same way as older people.
Two notable situations when you might want to set up a living trust as soon as possible are as follows:
1. You Have Minor Children
If you have minor children, it may be a good idea to make a living trust to hold and manage money and assets for them. This way, your minor children will have access to the funds that they need should you become incapacitated or pass away.
2. You Are the Parent or Guardian of a Special Needs Individual
If you wish to provide for an individual with special needs, a living trust will allow you to do so without jeopardizing their eligibility for needs-based government benefits such as Supplemental Security Income (SSI) and Medicaid.
Other Reasons to Make a Living Trust
Along with enabling you to provide for minor children and special needs individuals, a living trust can be used to achieve a variety of other estate planning goals. You may also want to consider setting up a living trust if you want to achieve any of the following:
Protect and manage assets for a spendthrift beneficiary
You may have an adult child or other beneficiary who is incapable of managing their inheritance due to a drug or alcohol issue, or because they are simply not good with money. In this case, you can leave funds for them in a trust and have money distributed to them in small portions when needed or only under certain conditions.
Keep money and assets in your family
For example, if one of your children is getting married, and you disapprove of her fiancé, you should have a living trust in place so that in the event of a divorce, your hard-earned property does not end up with your ex-son-in-law.
Plan for periods of incapacity during your lifetime
If at some point during your lifetime, you become incapacitated due to injury or illness or otherwise incapable of managing your affairs, the designated successor trustee of your living trust can step in and manage the trust assets while you are unable. This prevents your loved ones from having to spend the time and money to petition a court for the authority to manage your affairs for you.
Keep your family’s affairs private
A Will must be probated after you die. Once that happens, the Will becomes a matter of public record, along with other details, such as the content and value of your estate. On the other hand, a living trust is a private document, and no one except the trustee and the beneficiaries has to know what assets it holds or the terms that dictate the management and distribution of those assets.
Avoid probate
By putting your assets in a living trust during your lifetime, you enable them to avoid probate. This is important because the cost of probate can significantly diminish the size of the estate you leave behind for your loved ones. Also, probate can delay your loved one’s receipt of the funds and assets they may need after you are no longer there to support them.
Consult With a Virginia Estate Planning Lawyer
If and when you need a living trust depends on several factors, most importantly the estate planning goals you wish to achieve. An experienced estate planning lawyer can help assess your needs and advise you on the best course of action.
For help deciding if a living trust is right for your estate planning needs, or with setting up a living trust in Virginia, call our law firm at (703) 553-2577 or use the contact form to arrange a consultation with a knowledgeable Virginia estate planning lawyer.
The information on this site is for general informational purposes only. The information presented in this site is not legal advice or a legal opinion. You should seek the advice of legal counsel of your choice before acting upon any of the information in this site.