Did you know that many individuals utilize estate planning strategies? This can be a very useful tool to keep your assets secure and protected.
Are you curious about the best ways to utilize the power of estate planning? If so, check out more about what is a living trust and how it can help you secure your assets.
Interested in learning more about its benefits? If so, read on for our must-know guide that will help you understand this estate planning tool.
What Is a Living Trust?
It is a legal document created by an individual, which outlines how their assets and property will be managed and distributed after their death. It can be revocable or irrevocable, meaning it can be changed or amended at any time, or it can be set in stone.
The trust is funded with the individual’s assets during their lifetime and is managed by a trustee who is responsible for carrying out the wishes of the creator, you can also name beneficiaries who will receive your assets. Upon the individual’s death, the trustee distributes the assets according to the terms set forth by the creator.
Do I need a living trust? They are a great way to avoid probate court, and they can also help you manage your assets if you become incapacitated. It can save your beneficiaries time and money and in some cases, it can also help to protect your assets from creditors and predators, making it a great way to set up your estate planning.
Types of Living Trusts
There are many different types, and each has its specific benefits and drawbacks. The most common type is the revocable living trust, which allows the grantor to change the terms of it or even dissolve it entirely if desired.
An irrevocable living trust, on the other hand, cannot be changed once it has been created. This can be beneficial if the grantor wants to ensure that the assets are used for a specific purpose, but it can also be limited if the grantor’s circumstances change.
There are also testamentary trusts, which are created through a will and only come into effect after the grantor’s death, and charitable trusts, which are designed to benefit a specific charitable organization.
Living Trust vs. Will
A living trust can be amended at any time by the trustor, while a will can only be changed by making a new will. Unlike a will, it takes effect during your lifetime, which means you can use it to manage your assets while you are alive.
Secure and Protect Your Family’s Future
A living trust is a great way to protect your assets and your loved ones. It is important to consult with an experienced attorney to ensure that it is created correctly and that all of your wishes are accounted for.
Creating a living trust is a vital step in securing your family’s future.
Looking for more info on legal processes that could help you? Check out the rest of our blogs for more articles on the power of attorney, last will, guardianship, and other crucial things