How A Living Trust Works With An Estate Plan
Posted on: 18 May 2021
Estate planning is an event that many people take seriously, while others procrastinate planning their estates. If you are ready to begin working on your estate plan, you might want to talk to your lawyer about using a living trust. Most people do not understand what this is or how it works, yet it can be a tool to use in an estate plan. Here are several things to know about living trusts before you determine if you should use one or not.
It Is a Tool You Place Assets in While You Are Alive
A living trust is a tool that you create and use to hold your assets. While you do not physically put them into the trust, you name them to the trust that you create. When you do this, you are the trustor, which means you own the trust. While you are alive, the assets are yours, and you can do with them anything you wish. While you are alive, you can remove assets from the trust and add assets to it. You can make any changes you want to make if you create a revocable living trust.
It Serves an Important Role
A living trust serves a vital role with an estate plan. The main role is to ensure that a person's beneficiaries can quickly and easily receive assets the trustor wants to give them when they die. When the person places the things in the trust, the trust owns them. Transferring ownership rights from a trust to a beneficiary is simple. The work is already somewhat completed when a person creates the trust and names the beneficiaries. The beneficiaries will not have to go to court to handle the transfer. Instead, an estate planning attorney can handle all the work, resulting in a smooth and speedy transfer of assets.
Setting Up a Trust Requires an Attorney's Help
If you are interested in creating a trust, you will need to hire an estate planning attorney. The lawyer will help you create the trust and place your assets in it. The attorney will also help you decide how to split the items to your beneficiaries, and they will help you know how to name an executor of the trust. The executor carries out your wishes when you pass away, and you must name a person you trust. You can learn more about trusts by visiting an estate planning law firm.
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