Benefits of a Living Trust

10:26 am Uncategorized

A Living Trust is a legal document drafted by a qualified estate planning attorney that contains the Maker’s (the maker of the Trust is called the “Trustor”) instructions for disposing of his/her assets at death.

Unlike a will, a Living Trust avoids probate, making the administration of an estate at death much simpler and uncomplicated for the heirs.  A Living Trust is just like setting up your own family company that you control and that continues on past your death to carry out your dispositive wishes.

The concept is very simple and avoids the expense and delay of court proceedings.  You retain your control of the assets in the Trust because you are the manager or trustee of the Trust and you can do everything you could do before you placed the assets in the Trust (such as buy and sell assets, change or even cancel your Trust and you even file the same tax returns).  Nothing changes with respect to the assets in the Trust but the names on the title.

Briefly, the benefits of a Living Trust are:

  • It avoids probate at death
  • It prevents court control of assets in case of incapacity
  • It provides maximum privacy
  • It can reduce or eliminate estate taxes
  • It can be changed or canceled at any time
  • It can protect dependents with special needs
  • It brings all of your assets together under one plan for a more orderly disposition

A Living Trust, however, does not provide protection against creditors of the Trustor of the Trust.  But it can provide protection against creditors of your heirs.

For more information on Living Trusts, contact our California estate planning law firm.

Help is available to you by contacting your Southern California financial planning experts today.

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