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What are the Benefits of a Living Trust?

Many people are relatively familiar with the idea of a will, which leaves all of your assets to who you so choose after you pass away. However, most people don’t realize that you can also create a revocable living trust that allows you to control your assets while you are alive and acts similarly to a will. There are other benefits that include, minimal probate, less taxes and much more. A living trust can actually save you and your would be beneficiaries, a lot of money if it is done right by a legal professional. To get a consultation be sure to call RD Smith Law Offices.

A revocable living trust is a popular estate planning tool that you can use to determine who will get your property when you die. Most living trusts are “revocable” because you can change them as your circumstances or wishes change.  Revocable living trusts are “living” because you make them during your lifetime.  Lawyers sometimes call this “inter vivos.”

Revocable Living Trusts Avoid Probate

Most people use living trusts to avoid probate. Probate is the court-supervised process of wrapping up a person’s estate.  Probate can be expensive, time consuming, and is often more of a burden than a help.  Property left through a living trust can pass to beneficiaries without probate.

Learn more about probate in Nolo’s Probate FAQ.

The Trust Document

A living trust document is a written document, signed by the trust maker and a notary public. The document must list the property in the trust, name a trustee, and name who gets the property when the trust maker dies.

The trustee is the person who will take care of the property.  While the trust maker is alive, the trustee is usually the trust maker and then a successor trustee takes over after the trust maker’s death.

Transferring Property Into the Trust

After the trust document is made, the trust maker must transfer any property he or she wants covered by the trust into the trust.  For many items, this requires simply including a list of property with the trust document. However, titled property (like real estate) must be retitled in the name of the trust.  This is usually not complicated or difficult, but it must be done correctly or the titled property could end up in probate.

Read more at: http://bit.ly/1Ks8lnu

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