A living trust is a valuable estate planning tool. It lets you place selected assets in trust ownership, manage them as trustee during your lifetime and direct that whatever is remaining upon your death be transferred to designated beneficiaries. While this may sound somewhat similar to what a will does, there are distinct differences. A living trust does not necessarily replace a will, but the two can work in sync to make sure your property is efficiently managed and conveyed

The following are the major benefits of revocable living trust as a part of your estate plan:

• Avoiding probate — Probate is the legal process through which a deceased person's will is validated and their estate is settled. This court process can be lengthy and costly. But the assets within the trust bypass the probate process entirely. This allows for direct transfer of property to your beneficiaries, sparing them the potential complications of court proceedings. Note that probate is avoided only as to assets specifically made a part of the trust.

• Maintaining privacy — Unlike wills, which become public documents once they enter the probate process, living trusts are not filed in court. The details of your estate, including what you own and whom you choose to leave it to, remain private. This aspect of living trusts is appealing to those who wish to keep their financial matters and beneficiary designations confidential.

• Flexibility and control — A living trust is revocable, meaning you can alter or dissolve it during your lifetime. You can appoint yourself the trustee, so you can add or remove assets and use them as you desire. This flexibility allows you to respond to changes in circumstances or in your wishes for how your assets are handled. For instance, you can specify conditions under which beneficiaries receive assets, such as reaching a certain age or meeting certain conditions. 

• Protection in case of incapacity — Unlike a will, which only takes effect upon death, a living trust can provide protection if you should become incapacitated. You can name a successor trustee, who can be directed to manage your affairs without the need for a court-appointed guardianship or conservatorship. This can provide peace of mind that your affairs will be handled as you see fit, even if you are unable to manage them yourself.

An experienced estate planning attorney can provide valuable guidance in helping you understanding the benefits and logistics of a living trust. An attorney can draft the trust document ensure that it accurately reflects your wishes and meets all legal requirements. Additionally, an attorney can advise on the best strategies for funding the trust and managing it going forward.

Rubino, Ruman, Crosmer & Polen in Dyer assists clients with estate planning throughout Lake, Porter and Tippecanoe counties in Northwest Indiana. Call us at 219-227-4631 or contact us online to schedule a free consultation.