A living trust is a written legal document through which your assets are placed into a trust for your benefit during your lifetime and then transferred to designated beneficiaries at your death by your chosen representative, or trustee.
A Living Trust Avoids Probate
One of the first benefits of a living trust is that it avoids probate. A living trust does not go through probate, which often means a faster distribution of assets to your heirs—from months or years with a will down to weeks with a living trust.
A Living Trust Covers All Assets
Drafting a living trust will likely cost more than drafting a will as it is a more complex legal document. You must also transfer your assets such as bank accounts, stocks, and bond accounts and certificates to the trust through separate paperwork.
A Living Trust Provides Privacy
There is the level of privacy offered with a living trust. As a living trust is not made public, upon your death, your estate will be distributed in private. A will, is public record and so all transactions will be public as well.
The larger the value of the estate, the greater need there is for a living trust. Most tax professionals and planners tend to agree with this rule.