As a probate lawyer from a firm like Yee Law Group, PC can explain, trusts, wills and estates can all be confusing when trying to decide which is best for your property and asset dispersion to beneficiaries. The problem may be that weighing the advantages against the disadvantages of each legal process can be difficult for someone without a legal background because of all the ambiguities in the system. Here is some information to better help you understand what a living trust is and when the right time would be to create that trust.
What Is a Living Trust?
Living trusts are legal documents you create with the help of your attorney. The living trust is sometimes referred to as a revocable trust, and it establishes a legal entity or person that is then allowed to manage any of your assets and property placed into the trust. Most often, the court-appointed trustee is a person that has a fiduciary duty to deal with the items or monies in the trust for the benefit of another person or an estate. The trust can then act as a manager of all the assets with one caveat – it is revocable at any time during your lifetime.
Why Should You Create a Trust?
Imagine the trust as a storage unit that is cleaned, organized and managed by another person. You can remove items from storage any time you want, but you can also add items into storage for the other person to handle. That means you should create a trust when you have enough assets for someone to take control of. This includes:
- Property
- Homes
- Bank accounts
- Vehicles
- Jewelry
Any item that requires constant attention can be put into a trust, and you can stop managing the items and use your time for more enjoyable ventures.
When Is the Right Time To Create a Trust?
There is no simple answer as to when to create a trust, but it is always best to be prepared. A living trust will keep your probate private by avoiding it altogether, but you need to set it up before you die – your will document alone can not establish a trust. The trustee can also control your property distribution, thus allowing you to skip your children and gift your possessions to your grandchildren if you want to.
Only you should be allowed to decide how your estate is dispersed. So, if you know who your beneficiaries are and you own properties and bank accounts, call a living trust lawyer and put your plans onto paper. Today is the right time to create a living trust.