Research shows that 67% of adults in the US have no estate plan for when they pass away. That means that only 33% of adults have prepared for this, making the process easier for their families.
Many laws come to play after someone has passed. Things like a living trust or an estate plan help simplify the estate law for the family.
When someone passes away, their assets must be distributed and their debt paid. Having a plan in place can make it substantially easier for the remaining family.
Living Trust: Everything You Need to Know
If you don’t know what a living trust is, this is something arranged to protect the grantor‘s assets. This controls what happens to these assets after the person has passed away.
This helps the remaining family members to avoid a lengthy and complex probate process. As well as cut back on probate costs that they have to pay off.
A living trust is a legal document with terms that the grantor has created. It must have the grantor’s signature and any beneficiaries in place.
It will also indicate who the trustee that will manage these assets and the distribution is.
Types of Living Trusts
There are different kinds of trusts that you should know about when it comes to a living trust. There are two different types, and they will cover different estate law guides.
This is something that you will need to understand when you are looking at a living trust.
One kind of living trust is a revocable trust, where the grantor maintains control of the assets. They can change their trust at any time, and the trustee can also make decisions as necessary.
The grantor will pay the taxes owed on their assets while they are still living. If they become sick or incapacitated, the trustee will take over anything that needs to be done.
Another type of living trust is an irrevocable trust. This is a trust where the grantor cannot designate themselves as the trustee, so they don’t have as much control.
Once the trust has been created, the grantor cannot make many changes. Any changes will need court approval, and you cannot take back assets assigned to the trust.
The benefit of this is that it protects assets from lawsuits or creditors. It’s important that the trust includes the vital details since they may not be reversible.
Guide to Living Trusts
This living trust guide should help you to understand this type of trust better. This is important, especially when it comes to following estate law after someone has passed.
A living trust makes the process easier for the family and gives the grantor peace of mind while alive.
Are you interested in creating a living trust? Contact us today at Monastra & Grater for more information.