A Living Trust is a legal document that establishes a fund to be managed by a trustee for the benefit of the trust beneficiaries (family, friends, organizations, charities, you name it!). Many people choose to name themselves as the trustee while they are living in order to still be able to use and control their assets. After all, most Living Trusts are created during your lifetime for your benefit and are “funded” with your assets. Funding a trust is the process of transferring your assets to your living trust. In the event of your death or incapacity, you will have chosen a successor trustee to execute your wishes.
A Living Trust has many benefits including avoiding probate, keeping assets private, avoiding adult guardianships/conservatorships, having the flexibility to move from state to state, ease of amendment, sheltering beneficiary assets from creditors and providing for minor or special needs children. When used in conjunction with a Last Will and Testament, the Living Trust becomes the beneficiary of the Will (known as a “Pour Over Will”). A Living Trust is the best vehicle for you to provide for the family, friends and causes that you love, while knowing that your bequest will have a lasting influence.
Although a Living Trust is an upfront investment, if structured and funded correctly, Living Trusts will save significant time and money for your loved ones before and after your death. If an asset is held in trust, or has a trust named as the beneficiary, it does not have to go through the probate system. When you die with assets held in your name only, your heirs will need the assistance of a probate court to claim those assets. The probate process can take 2-3 years. It is noteworthy that in probate, the details of all assets, as well as details about the beneficiaries, become a public record. By having an asset held in a living trust, your information stays private and will not become a public record if structured properly.
At Alison Mathey Lambeth Law, PLLC, our job is to draft a complete estate plan that is tailored to your needs and wishes. Every estate plan will be customized to your needs There is no “simple situation” in this line of work. It is important to have a lawyer review and/or draft your estate planning documents to make sure you are up-to-date and have not forgotten critical language and powers. Contact us to set up your initial consultation.
