A living trust is a plan that you create during your lifetime to spell out what will happen to your belongings after your death. Just like a will, a living trust is a legal document that lists all of your wishes regarding your assets, your dependents and your heirs. It spells out who gets what, and when.
The big difference between a will and a living trust is that a will becomes effective only after your death, and after the documents have been authenticated for approval by the probate court system. With a living trust, your assets are placed in a trust before your death, which allows you to bypass the probate system. Creating a living trust saves both time and money, and makes for a much smoother transition for your heirs after you pass.
A Revocable Living Trust
With a revocable living trust, you, the trustor or grantor, transfer your assets into the trust during your lifetime, but you maintain ownership of the trust assets until your death, or until a time that you become incapacitated. Because this trust is revocable, you can make changes at any time, until of course you no longer have the legal capacity to do so. You can add or remove heirs or charities, or redistribute your assets among different investments. With a revocable living trust, you stay in control of your own assets throughout your lifetime.
Choosing a Revocable
There are many questions to be answered when choosing to create a living trust. With the expert guidance of your estate attorney, your answers to these questions and many more will lead you to the best decisions based on your unique financial and family situation. Your estate attorney can guide you through the process of creating this important document to ensure that your loved ones are taken care of, and that your wishes are carried out according to plan.