Living Trust
A living trust is a type of trust that is created during an individual’s lifetime to manage and distribute their assets. The person who creates the trust, known as the grantor, transfers ownership of their assets to the trust and appoints a trustee to manage the trust assets according to the grantor’s instructions.
The grantor of a living trust can typically serve as the trustee during their lifetime, retaining full control over the trust assets. In the event of the grantor’s incapacity or death, the successor trustee named in the trust document takes over the management of the trust assets and distributes them according to the grantor’s wishes.
There are several benefits to creating a living trust, including:
- Probate avoidance: Assets held in a living trust can be distributed to beneficiaries without going through the probate process, which can be time-consuming and costly.
- Privacy: A living trust is a private document, unlike a will, which becomes a matter of public record when it is probated.
- Flexibility: The grantor can modify or revoke the trust at any time during their lifetime, as long as they have capacity to do so.
- Protection of assets: A living trust can provide protection of assets from creditors, lawsuits, and potential future creditors.
Creating a living trust can be a complex process that requires careful consideration of estate planning goals, the type of assets to be included in the trust, and the selection of a qualified trustee. It’s important to work with a qualified estate planning attorney to create a living trust that meets individual needs and goals
