A living trust is an estate planning tool that will probably get your attention if you look into it. There are those who assume that a last will is the only way to go if you are not very wealthy, but in fact, a living trust can be a good choice for a wide range of people.
With this type of trust, you facilitate efficient asset transfers without losing control of the assets while you are living. A revocable living trust can be dissolved or rescinded, so you can change your mind and take back direct possession of the assets.
Plus, you can act as the trustee while you are alive and fully capable of handling your own affairs, so you control the trust every step of the way.
If you use a will instead of a trust, the will would be admitted to probate after you die, and this is a lengthy process. The heirs would not receive their inheritances during probate, and this not a very appealing prospect to many people. Under normal circumstances, probate will take roughly nine months to a year in most areas.
On the other hand, assets in a living trust would be distributed to the beneficiaries outside of probate, so there would be no long wait.
Changing a Living Trust
Another nice thing about a living trust is the fact that you have a great deal of flexibility. You can change the terms of the trust at any time, and it is relatively simple to do if you work with a licensed estate planning attorney.
If you acquire assets after you create a living trust, should you convey them into the trust? The answer would be that it all depends on the circumstances. There would be no particular reason to convey the assets into the trust if you do not think that you will have them in your possession when you pass away.
You should certainly convey the assets into the trust if you expect to possess them at the time of your passing. However, you can include a pour-over will when you create your estate plan. This type of will would allow the trust to capture assets that were in your direct personal possession at the time of your passing.
As a result, they could be distributed to the beneficiaries outside of probate.
Learn More About Living Trusts
We have a valuable resource that you can access through this website if you would like to obtain detailed information about living trusts. Our special report on the subject will answer most of your questions, and it is being offered on a complimentary basis at the present time.
To access your copy of the report, visit this page and follow the simple instructions: Free Report on Living Trusts.