What is a key benefit of utilizing a living trust?

A key benefit of utilizing a living trust is that it allows for asset management during the grantor's lifetime. This means that the grantor can specify how their assets are to be managed and allocated, both during their life and after death. Living trusts can be particularly advantageous if the grantor becomes incapacitated, as a successor trustee can step in and manage the assets without the need for court intervention, thus ensuring continuity in the management of the grantor’s financial affairs.

This flexibility and control over asset management is a significant advantage over other estate planning tools. Unlike a will, which only goes into effect upon death, a living trust operates while the grantor is still alive and can be structured to be easily modified or revoked if circumstances change. This feature provides peace of mind, knowing that assets can be effectively managed without interruption.

Living trusts do not eliminate the need for beneficiaries; they designate beneficiaries who will receive the trust's assets upon the grantor's death. They may also incur startup and maintenance costs that can vary depending on the complexity of the trust, so it is not a guaranteed less expensive option compared to a will. Lastly, many living trusts are revocable, meaning that the grantor can change or dismantle the trust at any time,