Creating Living Trusts: Protecting Your Estate
Learn how living trusts can help you avoid probate, maintain privacy, and ensure your assets are distributed according to your wishes.
What is a Living Trust?
A living trust is a legal document that places your assets into a trust during your lifetime and specifies how they should be distributed after your death. You maintain control as the trustee while alive and name a successor trustee to manage affairs after your passing.
Benefits of Living Trusts
Avoid Probate
Assets in a trust bypass the probate process, saving time and money. Probate can take months or years and incur significant costs, while trust assets can be distributed quickly.
Privacy Protection
Unlike wills, which become public record during probate, trusts remain private. Your estate details, beneficiaries, and distribution plans stay confidential.
Incapacity Planning
If you become incapacitated, your successor trustee can manage your affairs without court intervention, avoiding the need for a conservatorship.
Asset Protection
Certain types of trusts can protect assets from creditors and provide for special needs beneficiaries without affecting government benefits.
Flexibility and Control
As the grantor, you can modify or revoke the trust during your lifetime, providing flexibility as circumstances change.
Types of Living Trusts
Revocable Living Trust
Can be modified or terminated during your lifetime. Most common type for estate planning.
Irrevocable Living Trust
Cannot be easily changed once established. Offers stronger asset protection and potential tax benefits.
Steps to Create a Living Trust
- Inventory Your Assets: List all property, accounts, and valuables
- Choose Your Beneficiaries: Decide who receives what
- Select a Trustee: Name yourself as initial trustee and a successor
- Draft the Trust Document: Work with an attorney to create the legal document
- Fund the Trust: Transfer assets into the trust's name
- Maintain the Trust: Update as circumstances change
What Assets Should Go in Your Trust?
- Real estate
- Bank accounts
- Investment accounts
- Business interests
- Valuable personal property
Common Mistakes to Avoid
- Failing to fund the trust properly
- Not coordinating with beneficiary designations
- Forgetting to update the trust after major life changes
- Using DIY trust documents without legal review
- Neglecting to plan for incapacity
How We Can Help
Our estate planning attorneys have extensive experience creating comprehensive living trusts tailored to your unique situation. We provide:
- Personalized consultation and asset analysis
- Custom trust drafting
- Asset transfer assistance
- Coordination with financial advisors and accountants
- Ongoing trust administration support
- Regular reviews and updates
Protect your legacy and provide for your loved ones. Schedule a consultation today to discuss whether a living trust is right for you.
Key Takeaways
Trusts
Estate Planning
Asset Protection
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About the Author
Sarah Hunagwe
Experienced attorney specializing in trust deed creation. Dedicated to providing expert legal guidance and representation.
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