A living trust is a legal arrangement that allows you to control and distribute your assets both during your lifetime and after your death. It is designed to ensure that your assets are properly distributed in accordance with your wishes and that your family members receive what they deserve.
A revocable living trust is an important tool for anyone who wants to reduce or avoid probate and estate taxes and provide peace of mind to their loved ones. It can also help you protect your hard-earned assets from creditors and spouses and ensure that you have unfettered access to your assets in the event of an emergency.
Many people do not understand how a living trust works, so it is best to discuss your plan with an experienced estate planning attorney. Once you have an understanding of the process, you will be able to create a trust that will meet your specific needs.
There are a number of myths about living trusts, including that they can only be used by wealthy individuals or that they require an extensive financial investment to set up. While there are some situations where a living trust is necessary, for the vast majority of people, a simple will is all they need to provide them with peace of mind and to make sure their assets are distributed as they want.
Besides the fact that a living trust is often much cheaper than probate, it can also save you a lot of time and money in the future by avoiding probate in the first place, says New York City resident Letha McDowell, author of the Hook Law Center’s blog, “Trust for Life.” Probate can take a long time and cost money, especially in states with complex probate rules.
Another benefit of a living trust is that it can be used to avoid a court-ordered conservatorship when a person becomes incapacitated and unable to handle their affairs. Countless families end up in the courtroom trying to get a guardianship over a loved one who has become unable to manage their own affairs. A living trust can name a successor trustee who can step in and administer the assets without a court proceeding.
This type of trust is particularly useful in a variety of scenarios, such as when a person needs long-term care and doesn’t have any other family members to take over the management of their finances. A professional trustee can ensure that the assets in the trust are appropriately managed and distributed to the beneficiaries according to your wishes.
In order to be approved for Lead Counsel’s Living Trust program, attorneys must be independently verified by an outside agency and must show they have ample experience in the area of law they practice. They must also have good standing with their bar associations and maintain a clean disciplinary record.
Creating a living trust is an important step in any estate planning process, but it can be difficult to know where to start. You can use an online service to help you create a trust, but it is essential to work with an experienced estate planning attorney who can assist you in making the best decisions for your particular circumstances.
