Have you ever heard of a living trust? Do you know what it is and how it can be beneficial for you, and your family? If not, then some of the questions here will likely provide you with helpful information, which will allow you to make an educated decision regarding whether or not you should create one. In addition to this information, hiring a Sacramento Trust Attorney may make the process of creating a living trust easier.
What exactly is a living trust?
The living trust is a type of legal document that provides a partial substitute for a will. When you have a living trust, all of your assets, which includes bank accounts, stocks, your home, etc., are put into it and then administered during your life for your benefit. Then it will be transferred to your named beneficiaries when you pass away.
The majority of people who develop a living trust will place themselves as the trustee, which is the person who is in charge of managing the assets in the trust. This means that even when your assets are placed in the trust, you will still have control. You also have the option to name a successor trustee, either an institution or person, who will be responsible for managing the assets in the trust if you are ever unwilling or unable to do it on your own.
What will a living trust do for you?
Creating a living trust will ensure that your assets will be managed in accordance to your wishes, even if you are not able to manage them on your own.
When you set up a living trust, you can serve as the trustee or have someone else appointed to this position. When you pass away, the trustee you have named will be the executor of the will and gather all of your assets, pay your outstanding debts, taxes and claims and also distribute all of your assets based on the instructions you have provided. Unlike a traditional will, this will all be able to be handled without any type of court approval or supervision.
Is a living trust right for everyone?
The living trust is not for everyone. Younger married couples who do not have children or any significant assets and that have the intention to leave assets to each other upon death, will not need or benefit from a living trust. Additionally, if you desire court supervision for the administration of your estate, there is no need to develop a living trust.
