Which type of Trust is better

[Diego L.]

We want to know the best TRUST option, We have 3 rental units in North Carolina and each one of the units is on their own LLC. Our kids are really young, we would like to put the LLCs in a trust to avoid probate, what do you guys recommend?

thanks 

[Savannah Wallace]

Hi Diego,

When it comes to estate planning, I recommend a living trust to my clients. This can be a valuable tool for avoiding probate, which can be a lengthy and costly process, for any assets that are not held within a trust.

In your case, you could establish a living trust and then reassign the membership of your LLCs from you and your wife to the trust. This would mean that upon your death, the assets held within the LLCs would pass directly to the trust's beneficiaries without having to go through probate. It's important to note that a living trust typically only works for U.S.-based assets. If you have assets located in other countries, you may need to explore additional estate planning strategies to address those assets.

A living trust offers several other benefits beyond avoiding probate. It can help maintain privacy, as probate proceedings are public record, while the distributions from a living trust remain private. It can also provide for incapacity, allowing a successor trustee to manage the trust's assets if you become unable to do so.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.