Living trust generally exist while you are still alive. However, being alive does not necessarily mean you are in full capacity of yourself or that you even want to personally deal with all of the responsibilities your estate has.
A living trust is a tool designed to help you manage your assets.
Let’s think about some examples where you may need one and then you can begin asking yourself if a living trust is for you.
A prime example would be if you became incapacitated for any reason such as through an accident or disease. Another person, through the living trust, would look after your assets for you.
This person would look after them until your death at which time your will should specify the next step. A living trust is a very popular way to look after your assets in this case.
Another example would be to shield your assets from the plain view of competitors or creditors. A living trust allows your assets to be held under another name.
There are a number of reasons why this might make sense. Mainly, living trusts can shield your assets from particular kinds of tax liability. But they allow you to keep some privacy as well.
Celebrities and wealthy individuals are among the folks that especially favor trusts. But small business owners might consider them as well.
A living trust allows you to execute a rational plan through an independent third party. If you feel you want to distribute your assets slowly over the long term, this is a good way to manage them.
A responsible third party prevents you from making any bad decisions in the future.
Revocable Living Trust
Revocable Living Trusts are essential documents for protecting families and loved ones during times of crisis.
Protecting one’s assets under a Trust will guarantee that beneficiaries are correctly identified, provide for smooth transitions of assets, and prevent unnecessary interference and control by the court system in the event of incapacity or death.
Attention! We are not attorneys and we are not lawyers. We cannot represent customers, select legal forms, or give advice on rights or laws. The article provided is for information ONLY and is NOT a substitute for the advice of a lawyer.