A Living Trust is a legal document similar to a Will, which a person creates during their lifetime. The creator of this document is called a Trustor. A Trustee is given authority to manage an individual asset for the benefit of the beneficiary or beneficiaries. Simply put, a Living Trust is established to plan for one’s incapacity or death. This document is typically revocable, which means that a creator of a Trust can amends, revoke, or make changes to their trust. A Living Trust is also called a “Declaration of Trust” or “Revocable Living Trust,” among other names.
Advantages of a Living Trust
There are several advantages of a Living Trust, notably the avoidance of probate court. Probate court determines who the rightful heirs are of a deceased person or otherwise named a “decedent.” A Living Trust also provides the ability to transfer assets to beneficiaries upon one’s death in a simple and cost-effective manner. It may also employ estate tax planning language, which minimizes or negates any estate taxes.
A Living Trust is a private document unlike a Will. A Will is public information because it must be filed at the local courthouse within 30 days after the death of the decedent. A Living Trust does not have to be filed at the local courthouse and is a completely private document. This means less risks of estate conflicts because there are no requirements of mailing heirs and legatees a copy of the document. In a probate and Will situation, all heirs and legatees must receive notice of their inheritance rights despite being disinherited or receiving a smaller share than they feel is right.
With a Will and Trust, the spendthrift provision protects a decedent’s beneficiaries because a trust asset is exempt from creditor’s claims and liabilities. Thus, a creditor cannot seize your loved one’s inheritance unlike a Will. A Living Trust also has the ability to protect your beneficiaries and distributes their assets in a manner that protects them from age, and problems such as spending, alcohol, drugs, and other behaviors.
Partnering with Gateville Law Firm
Sean Robertson and Gateville Law Firm concentrate in estate planning. Our estate planning lawyers and staff utilize cutting-edge estate planning and asset protection strategies to protect the economic security and peace of mind of our clients. We are eager to assist you and your family with their estate plans. We are passionate about helping families to protect their assets and create a legacy plan. Attorney Sean Robertson is available at 630-780-1034 or available through an online contact form.