A living trust is a legal document that allows you to transfer ownership of your assets to a trust while you are still alive. The assets in the trust are then managed by a trustee for the benefit of the beneficiaries you have designated in the trust document.
Advantages of a Living Trust
A living trust allows for the transfer of assets outside of probate court, which can be a time-consuming and expensive process.
A living trust can provide for a seamless transfer of assets in the event of incapacitation.
A living trust is not a public record when it is filed, so the terms of the trust and the assets it contains are not available for public inspection.
A living trust is a flexible document that can be amended or revoked as long as the grantor has capacity to do so.
In some cases, a living trust may provide some protection from creditors depending on the type of trust and the laws in your state.
A living trust can provide continuity in the management of your assets if you become incapacitated or pass away, without the need for court involvement.
A well-drafted trust document can be written in such a way to deter family members or other parties from challenging the distribution of assets.
A living trust can protect assets from creditors, lawsuits, and other legal proceedings, providing an extra layer of protection for your assets.
How to Set Up a Living Trust
It’s important to consult with a qualified attorney or financial advisor before making a decision.
This means transferring ownership of your assets into the trust by changing the title or deed of your property, re-titling bank and investment accounts, and updating beneficiaries on retirement accounts and insurance policies to the trust.
The Law Office of Juan Carlos Pallares is available if you decide that you would like to hire an attorney to make sure the process is completed legally. We look forward to your call.
FAQs
Yes, you can add assets to your living trust at any time by retitling the assets in the name of the trust. This process is known as “funding the trust” and is an important step in making a living trust effective.
If your situation is more serious, it’s important that you talk to an attorney right away about what options are available for someone in this position. Schedule a free initial consultation with us now!
A living trust will avoid probate for assets that have been properly transferred into the trust. However, not all assets can be placed into a trust and therefore may still go through probate. For example, assets such as life insurance policies, which name a specific beneficiary, will pass outside of the trust to the named beneficiary and probate will be avoided.
Yes, you can name yourself as a beneficiary of your living trust. This is known as a “self-settled trust” or “grantor trust” and you will have control over the assets in the trust and use them for your benefit during your lifetime.
After you pass away, the assets in your living trust will be distributed to the beneficiaries you have designated in the trust document. This process is known as “trust administration” and is typically done without the need for court supervision.
The cost of setting up a living trust can vary depending on factors such as the complexity of your assets and the laws in your state. It’s best to consult with an attorney to get an estimate of the costs involved in creating a living trust.
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Yes, you can name yourself as a beneficiary of your living trust. This is known as a “self-settled trust” or “grantor trust” and you will have control over the assets in the trust and use them for your benefit during your lifetime.
