When someone makes a will, it comes into effect when that person passes away. However, managing the estate while living is also possible through a living trust and a living trust attorney.
Understanding Living Trusts
A living trust is a legal document . A designated person, also known as a trustee, is given the responsibility of managing the grantor’s assets for the benefit of the beneficiary or beneficiaries.
A living trust attorney can tell you more about its benefits; however, some of the most distinctive benefits that a living trust offers are:
- Avoids Probate
- Potentially Saves You Money
- Provides Privacy
- Ties strings to funds so people don’t receive funds outright once the Grantor passes
Avoids Probate
A living trust helps you avoid the probate that usually occurs when an individual dies, even if the deceased has written a will. Formal probate in Florida can take a year and requires involving the Court. The waiting time can vary from months to even a year before the distribution of assets takes place.
Saves You Money
Although drafting a simple will is more cost-effective than drafting a living trust, estate planning that includes the creation of a revocable trust may save money in the long run by avoiding probate costs. The creation of a “pour-over will” should be included in estate planning where a living trust is drafted for assets that do not make it into the name of the trust before the Grantor’s passing. Since comprehensive estate planning saves on the money that one pays during the probation process, your heirs may benefit financially from your living trust more than just a simple will, depending on associated fees.
Provides Privacy
Since a living trust helps you avoid probate, that means generally your estate is not made public. All the affairs of your living trust are not public records like in probate. Thus, the details pertaining to your assets, your estate’s value, and beneficiaries’ details are generally kept out of public records. A qualified living trust attorney can help you protect your estate and your privacy.
Most things with monetary value can be placed into a living trust, however your attorney will be able to advise you which assets should be placed into the living trust and which may have tax consequences or other issues. Be sure to consult your attorney.
Types of Living Trusts
Let’s discuss the two types of living trusts, i.e., revocable trusts and irrevocable trusts.
Revocable Trusts
This is the most common type of trust. Generally, a revocable living trust can be changed anytime by the Granter, while the Grantor has capacity. Although it may not be an easy and quick job to change a living trust, it is possible, and this flexibility makes revocable living trusts popular among people.
Irrevocable Trusts
Even if the Granter feels like changing the trust down the road, he or she cannot. If you would like to know more about living trusts, please visit our website and consult with our qualified living trust attorney, who can help you understand all the ins and out of living trusts.