A living trust is a legal document that allows you to manage your assets while you are still alive and to provide for the distribution of your assets after your death. It is a legal entity that can hold your assets for you in a trust account and is managed by a designated trustee. The trust document outlines the trust’s purpose and the terms of how your assets will be managed, transferred, and distributed.
How Do You Set Up a Living Trust?
Setting up a living trust is a relatively simple process. You will need to have a trust document drafted by a qualified attorney or other legal professional. This document will outline the terms of the trust and will name the trustee and beneficiaries. Once the document is finalized, you will need to transfer your assets into the trust. This is done by changing the title of the asset, such as your house, to the name of the trust. You will also need to update any beneficiary designations on your accounts, such as life insurance policies, to reflect the trust as the beneficiary.
How Is a Living Trust Different Than a Revocable or Irrevocable Trust?
A living trust can be either revocable or irrevocable. A revocable trust can be changed or revoked during the lifetime of the grantor, or the person who sets up the trust. An irrevocable trust, on the other hand, cannot be changed or revoked. The assets in the trust become irrevocably owned by the trust and can no longer be accessed or controlled by the grantor.
When Will a Living Trust Be Right for Your Family?
A living trust can be a great way to ensure that your assets are managed and distributed according to your wishes. It can also help you avoid probate, since the assets in the trust do not need to go through the probate process. Living trusts can also provide more privacy than wills since they are not made public like wills. If you have a large estate, a living trust may be the right choice for you and your family.
Are you in need of guidance with estate planning? Schedule a consultation with an estate planning attorney at Petrelli Law today to ensure your wishes are carried out. We serve clients in Pennsylvania, New Jersey, Austin, TX, Bethesda, MD, Chevy Chase, MD, Denver, CO, Washington, DC, Schaumburg, IL, Chicago, IL, and Seattle, WA. Contact us today!