Rather than depending on a joint ownership or a will, many people select a revocable living trust in their estate plan. Living trust provides full control of your assets with time savings and cost that are very much sought. For example, a living trust that is properly prepared get away with the costly, public, and time-consuming court procedures when incapacitated (guardianship or conservatorship), and death (probate). 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. Through a living trust, your children and grandchildren’s inheritances are protected against divorce proceedings, spouses, creditors, courts, and irresponsible spending while saving on real estate taxes.
However, there are still many people who commit the mistake of 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. The nature of a living trust changes literally changes the titles of the owner’s real estate or any other assets from his name or joint names to the name of the trust, and also changes beneficiary designations to the trust. The trustee you indicate controls the assets in your living trust, and most likely, you will name yourself as the trustee so you have a complete control over your assets. When it comes to the key benefits of living trust, it includes being able to remove assets anytime you want, and continue buying and selling assets like what you are able to do at the moment. 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. It is very important to fund or transfer your assets to your trust to avoid probate at death as well as court intervention when incapacitated while you are able to do so. If you forget something that must be included in your living trust, your lawyer can prepare a “pour over will”, acting like your safety net, so it catches any forgotten asset and allow it to be sent to your trust.
The bottom line is, it is your sole responsibility to ensure that all of the assets you want to be included in your living trust. A lawyer is there to help you in transferring your real estate, providing 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.What I Can Teach You About Systems