February 5, 2014 by generationsprobate
If you want to secure your properties and finances for your chosen beneficiaries, it is advisable that you file a living trust. While this is often considered a powerful tool for transferring finances, not everyone can stand to benefit from setting one up, so to find out if a living trust is for you, consider the following first:
Is the size of your estate large enough?
One can only benefit from a living trust if the property is considerably large enough to subject to the trust’s management. Setting up the trust can cost you a lot of money, so it is not safe to gamble knowing that you don’t have much.
Do you trust your potential trustee?
Having a living trust means that you are entrusting the management of your properties to your trustee. To ensure that your trustee won’t misuse or mismanage your property, you may decide to name co-trustees so that each can watch out for the other. Otherwise, you might have to hire the services of a professional fiduciary to manage the trust, and this, of course, will cost you.
Are you over 55 years old?
Living trusts do not make much sense for people who are under the age of 55, as it sets up an unnecessary complication that they won’t be able to benefit from for many years. Beyond that age, however, a living trust can be very useful, as it delegates management of your property even if you become incapacitated.