What are the advantages and disadvantages of a living trust?
A living trust is a legal document that allows you to transfer your assets to another person or entity while you are alive. It serves as an alternative to a will, which transfers assets upon death. In Washington, this type of trust is governed by the state’s inheritance law. Advantages of a living trust are that it can help you distribute your assets more quickly and efficiently upon your death. It can also help you avoid the cost and delay of probate. Additionally, it can provide greater privacy since it is not a part of the public record like a will. One of the major disadvantages of a living trust is that it requires you to transfer your assets before you pass away. This means that if your assets increase in value, you may miss out on the benefits of those assets because you have already transferred them. Additionally, it can be more costly to establish a living trust than a will. Finally, the assets may not be distributed in the way you intended due to the complexity of the trust document. Overall, a living trust is a great way to ensure that your wishes are followed after your passing. However, it is important to consider all of the pros and cons before making a decision on what type of estate planning is right for you.
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