Planning your estate is an important step to take for the future. It requires challenging decisions that affect the distribution of assets, the care of loved ones, and other aspects of your life.
A living trust can provide many benefits to you and your family. It’s used to determine the distribution of assets after you’re gone, and there are different types of living trusts that you need to be aware of.
The following will help you understand living trust benefits and the options that best suit your needs.
Assets in Your Living Trust
A living trust is a legal document in which assets are allocated, protected, and distributed over time.
Your trust is used to distribute assets at the time of death and ensures that all of your wishes are carried out by your trustee.
The trustee is the individual who oversees and administers the distribution of assets to the beneficiaries whom you have named in the trust.
The distribution of these assets can also occur before the time of death, giving you greater control during your lifetime.
The execution of your living trust doesn’t occur through the court system, which makes living trusts a more efficient tool when distributing your assets.
Your estate attorney helps you review the provisions of your trust so that all assets are accounted for and prevent unwanted issues.
The Benefits of Your Living Trust
You have the option of establishing a revocable or irrevocable trust. Each has unique benefits and limitations that you need to consider.
A revocable trust allows you make changes to its provisions. This gives you flexibility in assigning assets as well as determining whether to continue holding the trust.
Irrevocable living trusts can’t be changed, and any assets that it contains must remain in the trust without retrieval.
Living trusts give you the highest level of control over your estate and help you reduce the amount of estate taxes that are incurred.
Should you become mentally or physically incapacitated, your trustee makes the important decisions related to the management and distribution of your assets.
Living trusts offer greater privacy when compared to wills and are easier to process given that the asset distribution is done outside of probate.
The assets that are placed in a trust are also fully protected from any legal actions made by creditors. This ensures that your loved ones receive all distributions accordingly.
Setting Up Your Living Trust
Working with an experienced estate attorney is the first step in establishing your living trust. Your attorney takes the time to determine your unique needs and answer any questions you may have.
An attorney helps you make changes along the way so that your living trust is always current and you have a full understanding of the assets under its protection.
A skilled estate attorney lets you know what to expect when setting up your living trust. This prevents any issues and gives you the peace of mind in knowing that the decisions you make today will be carried out for the benefit of you and your family.
Kevin Tharpe
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