What is a Living Trust?October 21, 2021 By The Sterling Law Group
If you are looking for ways to protect that which you have worked hard to accumulate. This legal document might be just what you need, and you should discuss it with a Roseville estate planning lawyer.
A living trust is a legal document that puts everything you own as assets in trust for the duration of your life. The trust also lays out in detail how you would like to have your assets distributed should you pass away.
What assets can I have in a living trust?
Assets held in a living trust can be anything of value that you own. Could be it valuable personal property such as money in bank accounts or residential real estate you own. Also, other investments you own and control.
Who oversees my living trust?
It is managed by a person referred to as a trustee. This person takes your position as owner of your assets and makes all decisions affecting the assets. As the owner who has placed these assets in the document, you become what is referred to as the beneficiary. If you so choose, you can name yourself as the trustee of the living trust. Therefore, ensuring complete control of all your assets for the duration of your life. Once you pass away or become incapacitated, a successor trustee will take over.
Why should I make a living trust?
A primary advantage is that property left behind in a trust after one dies doesn´t have to go through probate. In short, probate is a process by which the debts of the person who has died are paid. Then, the rest of the property is distributed to heirs or beneficiaries. If your property is in a living trust, all of that is done in accordance with your wishes.
Is creating a living trust complicated?
It depends on how extensive your property holding is and the range of the valuable personal property you own. If the assets you own are not beyond average, then you probably need a basic living trust, which is often no more complicated or more expensive than having a will. However, you still want help from an experienced living trusts lawyer to help you set up your documentation in compliance with the law.
Do I still need a will if I have a living trust?
Yes, you do, because a will simplifies probate and serves as a backup for assets you may not have transferred to the trust. For example, if you acquire property before you die but that property is not added to your trust, then the property cannot pass through to those who you have named in the living trust. However, if you have a will as backup, then you can ensure that property is transferred to the right beneficiary.
Consult With a Trusts and Estates Attorney
It is important you make decisions about how your assets should be handled in the event you pass away or become incapacitated. Always discuss a sensitive subject like trusts and estate planning with The Sterling Law Group by contacting our legal team today.