On Easter, Christians honor the Resurrection of Jesus three days after His death by crucifixion. Three days earlier on Good Friday, we remember that Jesus willingly suffered and died for our sins.
It’s a somber moment each year during which our faith asks us to confront death. So why are most people uncomfortable taking steps to prepare themselves for passing on? One study found that nearly 70% of people avoid conversations about death.1
“For since by a man death came, by a man also came the resurrection of the dead. For as in Adam all die, so also in Christ all will be made alive. But each in his own order: Christ the first fruits, after that those who are Christ’s at His coming.” 1 Corinthians 15:21-23
“You’ve worked a lifetime. You’ve been a good steward. Allow God to be honored through your estate plan,” wrote Mick Owens in his popular book Diamond of Life: The Five P’s of Success and Significance.
The good news is that many individuals have taken the first step toward creating an estate strategy by drafting a last will and testament. This legal document outlines your wishes regarding property and asset distribution, as well as care for your dependents. Without a will, courts will make decisions for your family.
However, a will can only do so much, which is why it may be appropriate to consider other tools, such as a living trust.
What is a Living Trust
A living trust is a trust that is established while you are alive. It’s funded by transferring the title to your property from you to the trustee of the trust. If you like, you can name yourself as the trustee, which means you can maintain full control over the property in the trust. You can buy or sell property in the trust, and even give assets away as you deem appropriate.
In some instances, you may want to name a bank, trust company, family member or relative as the trustee. Regardless of who you choose, the trustee is legally obligated to manage the trust property in your best interest.
Pros and Cons to Consider
One pro of a living trust is that assets transferred to you are no longer in your name, which means that after your death, they will avoid probate and be transferred to your heirs according to your wishes. Some of the cons include cost of the trust and the time required to set up the document.
It’s important to remember that trusts involve a complex set of tax rules and regulations. Before moving forward, we encourage people to work with a professional who is familiar with these rules and regulations.
Also, we can help in the process of finding a legal professional, even if you are out of state. We can assist in reviewing the person’s background, helping to determine if their approach to legal matters aligns with our faith-based investing process. Over the years, we’ve worked with a number of professionals, so we can quickly assess whether we believe they would be a good fit in your situation.
Would a living trust be appropriate for you? That depends on your situation. In many cases, though, a living trust may be an appropriate way to pursue your estate goals.
- PRNewswire.com, July 13, 2022. Survey data from insurance provider Ethos.
