How a Living Trust Works
A living trust document, also known as a revocable trust, is a legal document that functions much like a will, except that it starts working while the person who establishes it (the grantor) is still alive. It contains instructions about what to do with the grantor’s property before and after the grantor’s death, including, but not limited to, the following matters:
- Who may access the money in the trust (the trustee, who can be the grantor or someone else)
- Who is to receive the money (the beneficiaries)
- Instructions on who will make financial and health decisions about the grantor if he or she becomes incapacitated
- Instructions on appointing a successor trustee if the original trustee dies or becomes disabled
After you set up the trust, you can transfer assets to it. If you transfer all your assets to the trust, your estate will not need to go through probate at all. It is possible for a married couple just to set up one trust and transfer both spouses’ assets into it.
Why You Need a Living Trust
- You can avoid probate even if your estate is worth more than $166,250
- A living trust can save your heirs money on estate taxes
- You will have peace of mind about who will manage your finances if you become incapacitated
- Your family members will not have to deal with the stress and expense of planning for your long-term care; they can just follow your instructions
You do need a living trust, but you do not need a lawyer to get one. It is only a matter of preparing the right legal documents. If you hire an estate planning lawyer just to create or restate your revocable trust, they will overcharge you. In California, legal document assistants have the authority to prepare court documents, including living trusts, without the involvement of a lawyer.
Create Your Estate Planning Documents With A People’s Choice
You can find lots of information about living trusts on the internet and some court sites offer basic details that help people understand estate planning.. Unfortunately, although the court’s site provides great information, you still to hire someone to help you prepare the documents. Even if you are young and healthy, it is never too early to set up a living trust and transfer your assets to it but you don’t have to spend an arm and a leg. doing it. Contact A People’s Choice about setting up a living trust and filing all the legal documents associated with it.
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