What is a Living Trust? Do I need one?

 

What is a Living Trust? Do I need it?

What is a Living Trust? 

A Living Trust is a written legal document through which your assets are placed into a trust for your benefit during your lifetime and then transferred to designated beneficiaries at your death by your chosen representative, called a “Successor Trustee.” A Living Trust cannot be contested in court like a will, what’s written in the trust is much more secure.

 

What are the advantages? 

1. A living trust, AVOIDS probate, which often means a faster distribution of assets to your heirs—from months or years with a will down to weeks with a living trust. Your successor trustee will pay your debts and distribute your assets according to your instructions.

2. While a Living Trust is costlier to draft, it saves your estate thousands of dollars in probate court fees as the distribution of assets in the trust will NOT go through probate.

3. As a living trust is not made public, upon your death, your estate will be distributed in private. A will, on the other hand, is public record and so all transactions will be public as well.

 

Do I need a Living Trust?

Here’s a few things to consider when determining whether is Living Trust is right for you or not. A Living Trust is not mandatory when establishing an estate plan, but, if you’ve accumulated a substantial financial saving over a lifetime; a Living Trust is necessary. The first thing to consider is your financial standings, simply, the more money you have, the more you should protect it with a Living Trust.  Speak to your estate planning Attorney how you’d like the finances delegated.