If you have never written a living trust before, you may be incredibly perplexed at the task. It may seem daunting, confusing and overall a huge assignment to partake in. However, creating a living trust with the help of a living trust lawyer Sacramento, CA trusts can be a great way to help ensure your loved ones receive a part of your legacy after you have moved on from this life. Here in the article below, we have answered a series of questions that many people may have about writing a living trust, and whether it can benefit them or not.
What is a living trust?
A living trust is an official document which appoints a successor trustee, lists the trustor’s assets, and how the trustor wishes to have their assets distributed in the event of death. The person who creates the living trust is referred to as the “trustor” and the successor trustee is the person who shall handle the trustor’s assets after passing away. The successor trustee can be someone you trust, a close friend, your spouse, a business partner or any other person you feel has your best interests at heart. This person shall hold a critical role in how your wishes are to be carried out after you have passed on. This person should be respectful and diligent when taking care of your desires as described in the living trust.
Does everyone need a living trust?
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Whether your assets are large or small, every person can benefit from creating a living will. The common perspective of living trusts is that they are only for people who are incredibly wealthy. While those who live a life of luxury surely can benefit from a living trust, you do not have to be of high financial status to write such a document. If any of these scenarios apply to you, then writing a living trust may be something to seriously consider:
- You own real estate
- You own your own business
- You want to leave instruction for which beneficiaries shall receive certain portions of your assets
- You want to provide for a relative with special needs
- You want to help protect your assets from lawsuits and/or creditors
What are the benefits of writing a living trust?
One of the biggest reasons people appeal to writing a living trust, is that their assets can avoid the probate process. Probate is the legal process of proving a will and its legitimacy. While this sounds simple enough, it can actually take several months or many years before finally coming to a conclusion.
What is the difference between a revocable and irrevocable trust?
A revocable trust can be changed after it has been created. The trustor can add more assets as they are accumulated, edit beneficiaries or even void the trust if they so wish. An irrevocable trust on the other hand, cannot be changed once signed. The trustor gives up his or her rights regarding the property or assets as soon as the irrevocable trust is established.
Thank you to our friends and contributors at Yee Law Group for their knowledge about estate planning and living trusts.
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