What Could Happen If I Do Not Have a Living Trust?

You might not consider yourself to be wealthy. However, you possess an estate if you have property, assets, cash accounts, or anything else of monetary value. Moreover, you should be the one who determines what happens to that estate after you die. On the contrary, if you do not want a court making final decisions about who gets what from your estate after you are gone, you need a living trust.

Many people set up a Will but neglect to create a living trust. Both documents help you handle your estate planning but do so differently. Unlike a Will, a living trust does not require your death for it to function. While you are still alive, you can list your assets and beneficiaries in your living trust. You can also delegate someone to serve as your “successor trustee,” who distributes your possessions according to your precise instructions upon your passing.

A successor trustee can also manage your estate even before your death. This person can prove beneficial if you become incapacitated or too ill to manage your assets.

Setting up a living trust can be challenging without trusted legal advice. An experienced lawyer can help ensure that your living trust works the way you intend. Unfortunately, here is what can happen if you leave this life without a living trust:

1. Your Estate Could Go to Probate

With no living trust in place, your estate could go through probate. Many people do what they can to avoid probate court because it can be expensive. It can also take several months or longer for your beneficiaries to become the rightful owners of what you bequeath them. Also, the loved ones you leave behind may receive less inheritance because the estate is responsible for the legal costs.

2. Your Estate Distributions Will Become Public Record

Upon your death, a Will goes public, but asset distributions outlined in a living trust stay private. If you do not like the idea of greater Cincinnati knowing what is in your estate and who will inherit it, you will likely appreciate the idea of a living trust.

3. A Family Dispute Could Ensue

In the wake of your death, family cohesion could turn sour if state probate laws interfere with your loved ones’ inheritance. A probate court might not distribute your estate in ways your beneficiaries will have anticipated. As a result, disagreements and bitter feelings can emerge, leaving harmful effects on the family for years or the rest of their lives.

Regardless of your net worth, if you have cash, valuables, property, or anything of value to leave behind after you die, you need a living trust in addition to a Will. Contact Donnellon, Donnellon & Miller if you need assistance with a living trust or any other aspect of estate planning.