To a large extent, it holds true that the elderly are easy targets of financial exploitation. In fact, it is not that aged people need to have considerable savings; only enjoying a regular and steady source of income can be enough reason for a conman to steal their cash.
In the United States, almost anyone aged 65 years or more get assistance in the form of Social Security retirement benefit on a monthly basis. A fraudulent is well aware of this aspect and all that a person inclined to steal needs to do is simply to gain the confidence of the elderly and then chart out a way to steal the money.
Initial Discussion of a Living Trust
Perhaps, this is exactly where you need to discuss available finances with your parents. There can be no denying of the fact that if you are an adult child, then finding a proper way of ascertaining your elderly parent’s financial health can be a tricky job indeed. It is mandatory that you need to have a well-written legal document, but the dilemma is that whether you should have a will or a living trust. As per estimation from various quarters, only 20% of Americans have a living trust. So, the automatic question which arises is why you should join that 20 percent only. There are some top reasons and let’s take a look at some of those.
What is a Living Trust
Firstly, let’s understand as to what a living trust actually is. Well, it can be better referred to as “revocable” or “inter vivos” trust and it is basically one sort of written legal document, which clearly suggests that assets are placed into a trust. This is done solely for your benefit, and with the gradual progress of time, the same is transferred to the designated beneficiaries. The major advantage you can necessarily enjoy with a living trust is that it avoids probate.
In fact, with a valid will, it is mandatory that your estate shall go through a valid probate. Also, the court proceedings that are followed are most necessarily distributed as per your wishes by the concerned executor. Since with a living trust, probate is avoided, the same implies that a faster distribution of assets to your heirs takes place and this is what actually benefits you in the long run.
Benefits of a Living Trust
Another major advantage which you may well associate with a living trust is that it provides the much-anticipated level of privacy. In fact, a living trust is never made public after your death and the distribution of your estate happens in a totally private and secure environment. A will is never considered to be a good option since all the transactions that happen take place in public.
By going through Caring People article, you will be able to understand the difference between a will and a living trust. Also, in the process, it will not be difficult for you to understand as to why a living trust qualifies as a much better option.
Definitely, a living trust makes sense to most as your handpicked successor trustee can manage all your financial affairs and that too without minimum or no court intervention. Furthermore, since the trust is revocable in nature hence once you are able to dispute your incapability; regaining total control of your finances is not that difficult a task at all.