Would A Living Trust Help Me?

The main purpose of a living trust is to avoid probate of the assets in the trust. While many promoters of living trusts tout their use in reducing estate taxes, in truth the existence of the trust itself has absolutely no effect on the estate taxes to be paid. However the trust can utilize other benefits of the tax law, in order to achieve estate tax savings. However any estate tax savings could have been just as easily achieved without having a living trust in place.

Since the cost and advisability of going through probate will vary with the laws of your state and your individual circumstances, it would be wise to get a second opinion before agreeing to a living trust simply to avoid probate. If you own assets that are physically located in more than one state, such as a vacation home in a different state, a living trust to avoid the expense of probate in the second state may be advisable. Speak to your attorney to discuss this issue in your specific situation.

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