If you’re creating an estate plan in Michigan, you may want to utilize a living trust. This action is an excellent way to keep your assets out of probate, which can be a costly and time-consuming process. Choosing this option means you can have your estate managed by a designated trustee, avoiding having the state make all the decisions regarding your belongings and children.
Helps streamline the distribution of your assets to chosen beneficiaries
When you utilize a living trust in an estate plan, it keeps your assets in a trust during your lifetime. Once you die, these assets are transferred to your designated beneficiaries by a trustee you name. The terms of a revocable trust can be changed at any time when you’re alive or completely canceled. After you pass away and you have a trust, your assets are distributed by avoiding probate. This action can be helpful if you own property in another state. It will be passed to your beneficiaries and not be held up in another state’s probate process.
Your largest assets are included in a trust
Placing your home in a trust should help decrease the time required to transfer it to your beneficiaries. This action can also be helpful when you own stocks, bonds and mutual funds. However, it’s important to know that retirement accounts, such as an IRA or 401(k), cannot be placed in your trust. CDs, savings accounts and money market accounts can be placed in your trust.
Assists if you become incapacitated
While you may be mentally and physically healthy now, things can change in the future when you least expect them. Having a living trust can be helpful if you become incapacitated and can’t make your own decisions. You can have a person named in your trust to handle your affairs if you cannot independently.
Utilizing a living trust can provide peace of mind and certainty. It lets you decide how your estate is managed in various situations.