The Complete Guide to Understanding Living Trusts

What is a trust living (or living trust)?

A trust living is more commonly called a living trust. It is an estate planning tool that can provide you with control over your assets. It also allows you to decide how your assets should be distributed upon your death. By understanding the basics of  trusts and how they work, you can create a plan that helps protect your legacy and ensures that the people you leave behind properly respect your wishes.

What Is a Trust Living?

A trust living (usually called a living trust) is a legal document that allows you to place assets and property into a trust for the benefit of yourself or another person. The trust can remain in effect during your lifetime and can be updated or changed at any time. When you create your trust, an appointed trustee will manage your assets according to your wishes. You normally appoint yourself as trustee. With this tool, you can control how and when your assets are distributed after your death.

How Does It Work?

A living trust works by transferring assets from your own name into a trust. During your lifetime, you can adjust the provisions of the trust or change who is going to manage it. You can also choose how and when the trust’s assets are distributed following your death. This allows you to ensure that your wishes will be followed and that your loved ones will receive what you intended them to receive.

Who Should Set Up a Living Trust?

Many people opt for a living trust as it offers privacy and flexibility, in addition to providing an efficient way of distributing your assets. It’s important to note that you don’t need a large estate or many assets to set up a trust, which may make it appropriate for any adult with some form of property. If you want to manage who receives your assets after death and avoid court fees, then setting up this kind of trust is the right choice for you!

What Are the Benefits of a Living Trust?

Setting up a living trust can provide several benefits for you and your loved ones. Through a living trust, you can transfer wealth to people or organizations of your choice upon death and avoid probate fees. Additionally, it offers much more privacy than a will does. That’s because all documents related to the trust remain private, instead of being made available to the public when a will is probated. Furthermore, living trusts don’t have to be reinvented or rewritten if you change your mind about who should receive your assets — unlike wills. Lastly, they are relatively easy to set up without needing an attorney.

Of course, there are some disadvantages as well. For example, it takes time to “fund” the trust. This means transferring appropriate assets to it so that your loved ones avoid probate.

How Do You Set Up a Living Trust?

Setting up a living trust is relatively easy. First, you will need to decide who the trustee, or manager, of your trust should be. Next, choose a successor trustee in case the original trustee is unavailable or unable to make decisions on your behalf. Then, you will need to list the beneficiaries that will receive the trust assets upon death. Next, you will create the actual trust document and decide what property you are transferring to it. Finally, you need to retitle the assets and properties that you are transferring to the trust.

Writing a Trust Is Not Easy. We Can Help.

It’s best to talk to an attorney to set up your trust. Our attorneys help people like you create an estate plan that meets their needs. To schedule an appointment, call us at 602-443-4888.

 

ABOUT THE AUTHOR

Founding attorney Paul Deloughery has been an attorney since 1998, became a Certified Family Wealth Advisor. He is also the founder of Sudden Wealth Protection Law.

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