5. Avoids Estate Taxes
The federal government allows your beneficiaries to receive up to $5,340,000 (indexed for inflation) without paying death taxes. In Massachusetts, if you die with $1,000,000 or less, your family will usually be exempt from death tax (although there are exceptions). But with a properly planned Living Trust, a married couple can leave double those amounts to their heirs without paying death taxes.
6. Controls Your Estate—Even in Death
With a Living Trust, long-term distributions can be made to your exact specifications, even after your death. For example, you can turn assets over to your children when they reach a particular age you designate so you can still support their education and future wellbeing. You can also set up your insurance proceeds to be paid directly to the trust to control how those proceeds are distributed.
7. Protects Your Children from Their Creditors and Ex-Spouses
You may want to ensure your children from prior relationships are treated fairly after your death. Your Living Trust can be written specifically so that distributions intended for your children (including children from a prior relationship) will be protected from their former spouses or current creditors.
8. Ensures that Your Wishes are Carried Out After Your Death
If your Living Trust contains a “no contest clause,” disinherited heirs and beneficiaries and their lawyers cannot get more than you intended for them to have from your estate.
9. Finds True Peace of Mind
When you know that your estate is safe and will be managed by someone whom you know and trust, you and your family can enjoy your later years without worrying how your estate will be distributed after your death. A Living Trust is the best measure for securing peace of mind.