The Living Trust: What It Is, What It Does, and Why It May Be Right For You
What is a Living Trust? Also referred to as an “Inter Vivos Trust” or “Revocable Trust”, a Living Trust is a legal document that serves to transfer the title your assets into trust for your own benefit during your life, and upon your death, for the benefit of your designated beneficiaries. A cousin to the Last Will and Testament, the Living Trust is an estate planning tool that has gained wide popularity in recent years among estate planners. Let’s take a look at why you might choose a Living Trust as the foundation for your estate plan.
A Living Trust, like a Last Will and Testament, is a legal estate planning document that is designed to organize your assets, plan for your future, and, under the right circumstances, save you and your family money. However, unlike a Last Will and Testament, a Living Trust avoids probate. The probate court, which is the specialized court that deals with the administration of estates, will hold proceedings in order to validate and enforce your Will. But avoiding probate with a Living Trust can mean faster distribution to your beneficiaries and less ancillary costs and fees. If you have assets in more than one state, avoiding probate is definitely a positive because you would not have to go through the court proceedings in each individual state in which your assets lie. Another benefit to having a Living Trust and avoiding probate is that your trust will not become part of public record; your estate can be settled privately.
When you decide that it is time to create a Living Trust, or even explore the idea of creating a Living Trust, you should first find the right estate planning attorney. Next, with the help of your attorney, you can begin to outline what your Living Trust will look like. This will mainly involve listing all of your assets, deciding on who you want to be your trustee (it can even be yourself!), and choosing your beneficiaries. Contact Ahmad Law Offices to schedule your complimentary Living Trust consultation today!
This article was created for informational and educational purposes only. It is not legal advice. Please read our full disclaimer here.