Increasing Awareness and Understanding About Living Trust
In the present times, many people select a revocable living trust in their estate plan rather than depending on a joint ownership or a will. Time savings and cost are very much sought with the extra control over assets that living trusts can provide. For instance, a living trust that is properly prepared avoids the costly, public, and time-consuming court procedures at death (probate), and incapacity (guardianship or conservatorship). Without disinheriting your children, a living trust allows you to provide something for your spouse especially in second marriages. Through a living trust, your children and grandchildren’s inheritances are protected against divorce proceedings, spouses, creditors, courts, and irresponsible spending while saving on real estate taxes.
However, there are still many people who commit the mistake of sending their assets under the court system that don’t really fund their trusts. When it comes to funding trust, it generally refers to the transfer of assets from the person who owns the property to his trust. The process involves physically changing the titles of assets from the owner’s name or joint names to the name of the trust, that also changes beneficiary designations to the trust. In a living trust, you must indicate the trustee or the person who will control the assets in your trust, and most likely, you’ll name yourself as the trustee so you have a complete control over your trust. The important benefits of having a revocable living trust include being able to remove assets anytime and continue buying and selling assets. Always keep in mind that you won’t avoid the probate if you already signed the document of your living trust without changing the titles and beneficiary designations. Also bear in mind that those assets you put in your living trust are the ones that you can only control. It is very important to fund or transfer your assets to your trust to avoid probate at death as well as court intervention when incapacitated while you are able to do so. Just in any case that you forget an asset to be included in your living trust, your attorney can prepare a “pour over will” , acting like your safety net, so it catches any forgotten asset and allow it to be sent to your living trust.
The bottom line is that you are the one who is ultimately responsible for ensuring that all of the assets you want to be included in your living trust. Your lawyer is there to help you by transferring your real estate, and providing you with the sample letters and instructions for you to be able to transfer your other assets. If you are already aware and get used to the process, then you can gain confidence in doing it yourself, and even save on legal fees. AmeriEstate can definitely help you in managing your living trust, you number one partner when it comes to will, trust, and inheritance.
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