Living Trusts

What does a Living Trust do?

A Will comes into play only after you die, but a living trust can actually start benefiting you while
you are still alive. A living trust is a trust established during your lifetime and is revocable, which allows for you to make changes. You will transfer substantially all of your property into your living trust during your lifetime, and any omitted assets can be transferred into the trust at the time of death through the use of a simple Pour-over Will. You should always make a Pour-over Will at the time that you establish your trust.

What are the Differences between Wills and Living Trusts ?

Both Wills and Trusts are devices, which you can use to provide for the distribution of your estate upon your death. Deciding whether a Will or a Trust best fits your needs depends on your circumstances. A living Trust is a popular alternative to the traditional Will, but you should weigh the advantages and disadvantages of each before deciding on one form or the other.

What Happens At Probate Time ?

Under A Will: Subject to probate proceedings. Out -of-state property requires probate proceedings
in that state, as well.

Provides court supervision for handling beneficiary challenges and creditor disputes. Becomes
public record at the time of your death.

Under A Living Trust: Not subject to probate proceedings. Avoids the cost of a second-state
probate proceeding where there is out-of-state property. No automatic court supervision to deal
with disputes. Remains private.

Tax Savings

The same tax-saving-provisions available in a Will, are available in a Trust.   

                                                                                                                          

Management of your Assets

Under A Will: In addition to the Will, must use a Power of Attorney or Conservatorship to manage assets. Allows you as the grantor to manage the Trust assets as long as you are willing and able. Under A Living Trust: Makes provisions for a successor trustee to take over in your place.

Costs

Under A Will: Costs less to prepare a Will than a Trust. Cost to probate a Will can be substantial.

Under A Living Trust: Costs more to prepare, fund and manage a Trust than to prepare a Will. But avoids probate costs if all assets were held by the Trust.


Related:

	Estate Planning Needs
	BUILDING AND CONSERVING YOUR ESTATE
	Using "Will Substitutes" To Avoid Probate
	Federal Estate Tax
	Estate Planning Strategies

	Wills, Trusts, Probate, and You HERE!
	Living Wills HERE!
	Living Trusts HERE!
	Estate Planning Trusts HERE!
	1035 Life Insurance Exchange
	Revocable Trusts HERE!

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