Some 30 years ago Living Trusts were thought of as planning tools solely for the wealthy. Like hedge funds, that is no longer the case. The living trust is becoming increasingly popular as more and more people understand the terms and provisions offered by a living trust. Living trusts are most attractive because of privacy and tax advantages. Living trusts are executed by estate attorneys during your life time. There is also a trust called testamentary, created after death. When contemplating choosing any vehicle to manage your money or assets it is important to research and learn as much as possible so that you can make an informed decision and one you won’t regret.
The profile of a Living Trust:
The living trust involves the individual (couple if married) who obtains the trust and is designated the Grantor or Trustor. The Trustee is the individual named by the Trust to manage the assets and property. The Trustee and Grantor can be one in the same. The Beneficiary(s) are the heirs that stand to receive the assets and properties of the Trust after the Grantor or Trustor has passed away. The major difference between the Living Trust and a Will is that Living Trusts are not subject to the laws and regulations of probate. Having ones wishes kept private and away from the public is the key element that continues to drive interest in the Living Trust.
A Trust is defined as a separate legal entity therefore distributions to beneficiaries can be made without any involvement from the courts. As long as the assets have been placed in the Trust, then distributions can be made to the beneficiaries. There are many items that can be placed in a Trust once it is established, i.e.., personal property, savings, stocks and bonds, etc. Assets are removed from your name and put in the name of the Trust.   Never do anything without educating yourself first. Information provided is simply a catalyst for you to do your homework so that you will be satisfied with the decision you make that impacts both you and your family.
P. S. Always Remember to Share What You Know.
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