Living Trusts - In General 1. Generally LESS EXPENSIVE than probate. 2. Provides for protection and control of your assets upon DISABILITY. 3. It can eliminate the need for a COURT APPOINTED GUARDIAN in the case of the grantor's disability or in the case of minors inheriting property. 4. SPEED OF ASSET DISTRIBUTION. Property is generally distributed earlier to beneficiaries than through a will. 5. Avoids ANCILLARY PROBATE in other states. (i.e., vacation home in Wisconsin) 6. CANNOT BE CONTESTED as easily as a will 7. PUTS YOUR HOUSE IN ORDER. One of the hallmarks of the living trust is that assets have to be identified, assembled and then transferred. It is this very task that many people want to avoid and which drives up the cost of probate administration. 8. PRIVACY. FUNDING YOUR LIVING TRUST The transfer of assets into a living trust is called "Funding." For example, title would be changed on all real estate and other titled property to "John Doe, as trustee of the John Doe Living Trust dated July 13, 2003" IN A LIVING TRUST, YOU CAN BE: GRANTOR - The person creating the trust -YOU. TRUSTEE - The person managing the trust assets -YOU. However, you can name a family member or bank to act as trustee or co-trustee. You need to name a Successor Trustee to manage your assets if your become unable to do so because of death or incapacity. BENEFICIARY - The person receiving the benefit - YOU. You still control your property after it is transferred into trust and can use it anyway you please, just as you could before you transferred the property into trust. ***IN SOME CASES, A BANK OR TRUST COMPANY MAY BE A SUITABLE TRUSTEE

<< prev    main    next >>   home | attorney profile | what is estate planning? | contact