Estate Planning & ProbateEstate planning is essential for everyone, not just the wealthy. It allows you to control what happens to your assets during your lifetime and even after your death.
A living trust is one way to do this.
What is a Living Trust?
When someone dies, their property must go through probate court before it can distribute to their heirs. However, if the deceased person secured a living trust, it might have avoided the probate process altogether.
A living trust is a legal paper that outlines how who should distribute a person’s property after their death. The person who creates the trust, known as the grantor, can specify who should receive what assets.
Revocable vs Irrevocable Trust
The grantor can modify or dissolve any revocable trust at any time. But, on the other hand, that cannot change an irrevocable trust once created.
Most of these are revocable, meaning the grantor can change their mind about who should receive their assets at any time. The advantage of a revocable trust is that it allows the grantor to keep control of their property while alive.
A living trust attorney can help you create one that meets your needs. They can also help you understand the difference between that and a will.
Pros and Cons
While a trust does have some advantages over a will, there are also some drawbacks to consider. One of the most significant disadvantages of it is that it can be more expensive to set up and maintain than a will.
Another downside is that it can be more difficult to change after its creation. If you want to change it, you must work with your living trust attorney to ensure that everything is appropriately updated.
Is it right for you?
Whether this living trust is right depends on your circumstances. For example, suppose you have a large estate or a complex financial situation. In that case, it may be the best way to ensure that you will share your assets according to your wishes.
If you are considering getting a living trust, you must consult an experienced probate attorney to discuss your options and ensure that you will handle everything properly and correctly.