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Key milestones in life when creating a Living Trust makes sense

Life is a journey filled with important milestones, and as we navigate through various stages, it’s crucial to plan for the future and protect our assets. One effective tool for estate planning is a Living Trust. While the creation of a Living Trust can be beneficial at any point in life, there are specific milestones when it becomes particularly important to establish one. In this article, we will explore those significant life events where creating a Living Trust can provide valuable advantages and peace of mind.

Marriage and Building a Life Together:

Entering into marriage is an ideal time to consider creating a Living Trust. As couples intertwine their lives and assets, a trust can help protect shared property, investments, and future financial security. It allows spouses to clearly define their wishes, determine the management and distribution of assets, and provide for the surviving spouse in case of one partner’s passing.

Purchasing a Home or Real Estate:

Buying a home is often one of the most substantial investments we make. A Living Trust can play a crucial role in ensuring the smooth transfer of property and avoiding probate. By placing the property within the trust, you can maintain control over its management and designate beneficiaries who will inherit the property without the need for court intervention.

Starting a Family:

Welcoming children into the world brings immense joy and added responsibility. Establishing a Living Trust can safeguard your children’s financial well-being and ensure their future care. Through a trust, you can appoint a guardian for minor children and designate specific instructions on how assets should be managed and distributed for their benefit.

Accumulating Significant Assets:

As your wealth grows, so does the importance of protecting it. Whether it’s through business ventures, investments, or other endeavors, a Living Trust provides a comprehensive framework to manage and pass on substantial assets efficiently. By transferring assets into the trust, you can mitigate estate taxes, maintain privacy, and streamline the distribution process for your beneficiaries.Retirement and Golden Years: Transitioning into retirement marks a significant shift in lifestyle and financial considerations. Creating a Living Trust during this phase allows you to plan for the management of assets during your lifetime and provides a clear roadmap for asset distribution after your passing. It also ensures that your chosen healthcare and financial agents have the legal authority to act on your behalf if you become incapacitated.

Charitable Giving and Legacy Planning:

Many individuals feel a strong desire to leave a lasting impact through charitable giving. A Living Trust offers an effective tool for incorporating philanthropy into your estate plan. By including provisions for charitable donations, you can support causes close to your heart while potentially benefiting from tax advantages.

Throughout life’s important milestones, creating a Living Trust can offer invaluable benefits and provide peace of mind for both you and your loved ones. Whether it’s establishing a solid foundation for your marriage, protecting assets for future generations, or leaving a meaningful legacy through charitable giving, a Living Trust ensures that your wishes are honored and your assets are managed according to your intentions.

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What is a Trust?

A Living Trust is a financial tool that lets you plan, organize, and protect your life. It’s a personal entity that allows you to add assets and plan out your inheritance. Eliminating legal battles, cost, and time spent by your loved ones. 

Think of it like a personal LLC that you put everything you own in. Except it doesn’t protect you from liability like an LLC does, it protects you from probate and conservatorship. 

Probate is the complicated court process (12-18 months) where a judge decides what happens to your assets after you die, become incapacitated, or are “deemed” incapable. Creating a living trust allows your assets to completely circumvent probate and immediately transfer to your loved ones. 

In addition to being able to name heirs (your beneficiaries), a Trust also allows you to assign someone to manage it (your successor trustee). Instead of going through probate, your Successor Trustee takes control of the Trust, handles your affairs, and distributes your assets according to your instructions. The person you select as Successor Trustee should be your most trusted person. Like a best friend or closest family member.

At Dynasty, we believe everyone should have a Living Trust. If you have children, assets, or plan to acquire assets in the future, you should create a Trust. That way when you buy your next home, open a bank or brokerage account, get startup shares, etc. – you can immediately title them in your trust.