theestateplanningsiteblog

 

Rather than depending on a joint ownership or a will, many people select a revocable living trust in their estate plan. They like the time savings and cost with the additional control over assets that living trusts can provide. For instance, a living trust that is properly prepared avoids the costly, public, and time-consuming court procedures at death (probate), and incapacity (guardianship or conservatorship). Living trust plays an important role in providing for your spouse while not forgetting to set a portion for your children, which can be beneficial for second marriages. It basically protects your children's inheritances as well your grandchildren from the creditors, courts, divorce proceedings, spouses, and irresponsible spending.

 

One of the biggest mistakes that people commit is sending their assets under the court system that don't really fund their trusts. Funding trust refers to the process of transferring assets from the person who owns the property to his trust. Living trust literally changes the titles of your assets from your name or joint names to the name of the trust, that also changes beneficiary designations to the trust. In a living trust, you must indicate the trustee or the person who will control the assets in your trust, and  most likely, you'll name yourself as the trustee so you have a complete control over your trust. Learn about do it yourself living trust here!

 

The important benefits of having a revocable living trust include being able to remove assets anytime and continue buying and selling assets. You won't avoid probate if you have already signed your living trust document without changing the titles and beneficiary designations. The assets that you put in your living trust are the ones that you can only control. You must fund your trust to avoid probate at death as well as court intervention when incapacitated while you are able to do so. If you forget to add funds to your living trust, your attorney can prepare a "pour over will" which is like your safety net, so it catches any forgotten asset and allow it to be sent to your trust. For more facts and information about estate planning, you can go to https://en.wikipedia.org/wiki/Estate_(law).

 

 

The bottom line is that you are the one who is ultimately responsible  for ensuring that all of the assets you want to be included in your living trust. Your lawyer can help you transfer your real estate, provide you with the sample letters and instructions for your other assets. Once you know how the process works, then you can do it yourself and save on legal fees. AmeriEstate can definitely help you in managing your living trust, you number one partner when it comes to will, trust, and inheritance. Try it now