Definition of a Living Trust
A living trust is a legal document created by you (the grantor) during your lifetime that spells out exactly what your desires are with regard to your assets, your dependents, and your heirs. A living trust bypasses the costly and time-consuming process of probate, enabling your successor trustee to carry out your instructions as documented in your living trust.
The Two Types of Trusts
Revocable Living Trust – With a revocable living trust, you transfer your assets into the ownership of the trust. You retain control of those assets as the trustee of your revocable living trust. You can change or revoke the trust at any time you want.
Irrevocable Living Trust – An irrevocable trust allows you to permanently and irrevocably give away your assets during your lifetime. After you give away these assets, you have relinquished all control and interest in these assets.
Benefits of a Living Trust
A properly written and funded living trust can offer many benefits. As mentioned, they help avoid probate at death, including multiple probates if you own property in other States. By doing this, your estate will also avoid court control of assets at incapacity. Living trusts act to bring all of your assets together under one plan, providing maximum privacy and quicker distribution of assets to beneficiaries. Assets may remain in trust until you want beneficiaries to inherit them.
Moreover, a living trust can reduce or eliminate estate taxes, and they serve as peace of mind that your affairs will be properly handled. Free consultations are available to discuss you and your families needs.