Are you wondering how to handle your assets in an emergency properly? What if you become immobile and want another person to manage your belongings? It is what a Living trust covers.
You might be familiar with creating an estate plan. Also, you might encounter what we call living trust. If you do not know what living trust is about and how it works, you have come across the right article. Today, we will discuss living trust and its benefits.
About Living Trust
Getting a living trust presents many benefits and advantages. For instance, you can even avoid the probate process. A probate process involves a court hearing where the government decides the validity of a will. If you want to prevent this, a living trust is the best way forward. However, not all people are aware of a living trust.
Creating an estate plan is crucial for the remainder of your assets. You can contact a Roseville Trust & Estate Administration Attorney who will assist with the entire process. They are professionals who can explain all the details of estate planning to you. An estate planning attorney ensures that all your assets go to the right people.
A living trust is also famous as a revocable living trust or revocable trust. It is a legal document that establishes a trust for all the assets you want to transfer to another individual. The main objective of a living trust is to ensure that all your assets are appropriately transferred after your death. It is also applicable to immobile people due to sickness or old age.
Every living trust presents terms to follow. Under the terms of a living trust, a person who will transfer their assets is the grantor. They can then select any person to be the recipient. You can also assign a person to distribute the trust’s assets after the grantor’s death. The recipient is known as the successor trustee.
How a Living Trust Works
You might ask yourself: How does a living trust work, and what does it contain?
A living trust contains the title and ownership rights to all the assets you want to transfer. You can assign a temporary guardian that will manage all your assets if you become immobile. After your death, all your assets will move towards the person you intend to receive your assets.
Since a living trust is revocable, the grantor can retain control over the assets in the trust. Even if the grantor already transfers the ownership rights to another person, it can happen. The revocable feature of a living trust lets a grantor handle all their assets, similar to the time before completing the transfer of assets.
Benefits of a Living Trust
A living trust can be a part of your long-term estate plan. An estate plan allows a person to assimilate all their assets. They can plan or decide on a beneficiary or heir to their assets if they perish. An estate plan is also applicable to people who undergo retirement or become immobile due to a disease.
Here are some advantages of a living trust:
Avoiding the Probation Process
A probation process involves the court supervising and acknowledging the grantor’s will. It can be a long and complex process. Family disputes can occur. To prevent this, a living trust allows the successor trustee to distribute a grantor’s assets to their beneficiaries immediately.
Handling Loss of Capacity
If you have many investments, land properties, a jewelry collection, or even a vehicle – then a living trust allows you to find a person who can handle all your assets. A living trust applies to a grantor who loses the capacity to handle the assets themselves. As a result, a successor trustee can step in to manage their investments.
Control Asset Distribution
Like a will, a living trust dictates what happens to all the assets after a grantor’s death. A living trust does not limit the immediate transfer to all your beneficiaries. If one of your beneficiaries is a minor, you can set up a living trust to wait until they reach maturity.
A living trust contains all the ownership rights and the titles of assets. Under a living trust’s terms, the grantor is the owner of the assets, while the recipient is the beneficiary. A grantor can also assign a successor trustee to manage their assets if they become immobile.