What are the advantages and disadvantages of a living trust?
A living trust is a type of estate planning tool that is used to manage assets in the case of a person’s death. In the state of Hawaii, a living trust can be an advantageous way to pass on assets. One advantage is that assets placed in a living trust can be transferred quickly and efficiently upon death. This is because the trust is already established, and does not have to go through probate. This means that assets can be divided and distributed faster, with little to no court involvement. Also, a living trust can help reduce the cost of transferring assets. A disadvantage of a living trust is that they can be quite complex. If a person’s estate is large or complex, hiring a lawyer to establish one is highly recommended. Another disadvantage is that, if assets are placed in a living trust, they cannot be altered or modified unless the trust is dissolved. This is because the trust has become a separate legal entity. Overall, a living trust can be a useful tool for estate planning in Hawaii. However, it’s best to speak with an attorney to make sure it’s the right tool for a person’s individual situation.
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