A living trust is a popular consideration in many estate strategy conversations, but its appropriateness will depend upon your individual needs and objectives.
A living trust is a legal document that places some or all of your assets in the control of a trust during your lifetime. ... After your death, the living trust assets are passed to the people you have selected as beneficiaries. Living trusts are a popular estate planning tool.
The main reason individuals put their home in a living trust is to avoid the costly and lengthy probate process at death. ... Since you can access the assets in the trust at any time, a revocable trust does not provide asset protection from creditors or remove the home from your taxable estate at death.
Generally, the price of a trust starts at $2,450+ but the exact price will be determined at the time of consultation. This includes all documents required to establish the trust, recordings, fillings, notary, powers of attorney, both financial and health care related.
A living trust is created while you are alive and funded with the assets you choose to transfer into it.
The trustee (typically, you) has full power to manage these assets. But using a trust involves a complex set of tax rules and regulations. Before moving forward with a trust, consider working with a professional who is familiar with the rules and regulations.
A living trust will also designate a beneficiary, or beneficiaries, much like a will, to whom the assets are structured to automatically pass upon your death.If you create a revocable living trust, you may change the terms of the trust, the trustee, and the beneficiaries at any time. You can also terminate the trust altogether.
The living trust offers a number of potential benefits, including:
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