A living trust is a legal document that allows you to control how your assets will be managed and distributed after death. It can protect your assets from probate, creditors, and estate taxes. A living trust can also help you avoid probate if you become incapacitated.
Living trusts can be revocable or irrevocable. Revocable means that the grantor can change the terms of the trust or revoke it entirely at any time. Irrevocable means that it cannot be changed once the trust is created.
There are many benefits of creating a living trust.
- Avoids probate: Probate is the court-supervised process of distributing your assets after you die. If you have a living trust, your trustee can distribute your assets without going through probate, which can be costly and time-consuming.
- Living trusts are also used for asset protection. A living trust is an estate planning tool that can be used to protect your assets. When you create a living trust, you transfer ownership of your assets to the trust. The trustee then manages the assets for the benefit of the beneficiaries. If you are sued or declare bankruptcy, your creditors may not be able to access the assets in your trust.
- Gives you control: You can name anyone you want as your trustee, including yourself. And you can specify how and when you want your assets to be distributed after your death.
- Keeps things private: Probate is a public process, so anyone can see how much money you have and who gets it when you die.
Who should be the trustee of my living trust?
There are a few things to consider when choosing who will be the trustee of your living trust. First, you need to decide if you want a professional trustee, such as a bank or law firm, or if you want an individual trustee. There are pros and cons to both choices.
Professional trustees have the advantage of experience and expertise in managing trusts. They also have staff who can help with the administration of the trust. However, they can be expensive, and you may not have as much control over managing your assets.
Individual trustees can be less expensive than professional trustees, and you may have more control over how your assets are managed.
In conclusion, a living trust is a legal document that allows you to control how your assets will be managed and distributed after death. It can protect your assets from probate, creditors, and estate taxes. A living trust can give you peace of mind knowing that your loved ones will be taken care of after you’re gone.
Feel free to call the ALTA Estate Services, LLC office at (520) 797-1400 to learn more about proper and complete estate planning, including the Emergency Telephone Hotline Program afforded to you and your family members at no charge during times of crisis and the other benefits of estate planning described above. Mark Fishbein, Tucson AZ.
The text above is for general informational purposes only, and should not be considered legal advice. For more information, click Contact Us.