Three Things A Living Trust Can Accomplish
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by: RobinsonLawNY
Word Count: 2616
Date: Fri, 24 Jun 2011 Time: 5:27 AM
A trust is a powerful estate planning tool, and there are three important things a living trust can do for your estate plan.
A trust is a powerful estate planning tool. While many may think a living trust is too complicated or confusing to benefit their estate, they may want to take a second look at just what can be accomplished with a trust.
First, for those unfamiliar with how a living trust works, a trust is an agreement in which a person or company holds an asset, such as real estate or stocks, for the benefit of others. The person who controls the asset is known as the 'trustee' and those who benefit are called the 'beneficiaries', while the person who creates the trust is called the grantor. The trust is actually the legal owner of the property.
So what can a living trust do within an estate plan?
1. Manage your assets later in life
A living trust can help you avoid the possibility of a court-ordered guardianship or conservatorship later in life should you begin to lose the capacity to manage your finances or personal affairs. The trust allows you to have a successor trustee to take over the trust property, whether it be real estate, stocks or even a bank account, to keep your affairs in order.
2. Avoid probate
Probate is the legal process that administers the estate of a deceased. Many estate planning tools are geared toward avoiding probate, as the process can be costly and complex for some estates, particularly those without proper planning. Holding property within a living trust allows the property to avoid probate, as the trust is the legal owner of the property, rather than the deceased.
3. Maintain privacy
A revocable living trust is generally a private document, but a will becomes a matter of public record when it is filed in Probate Court.
A living trust attorney can help you determine if a living trust is suitable for your estate planning needs. While a trust isn’t for every estate, working with an estate planning lawyer can help you determine the tools to use to meet your family’s needs and goals, both later in life and upon your passing.
About the Author
Experienced estate planning attorneys Naples NY of the Law Office of Michael Robinson P.C. offers estate planning and business planning resources to residents of Naples NY. To learn more about these free resources, please visit www.mrobinsonlaw.com today.
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