{"id":38031,"date":"2016-03-31T19:26:23","date_gmt":"2016-04-01T00:26:23","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/uncategorized\/what-is-a-living-trust.html"},"modified":"2016-07-07T08:58:55","modified_gmt":"2016-07-07T13:58:55","slug":"what-is-a-living-trust","status":"publish","type":"corporate","link":"https:\/\/corporate.findlaw.com\/litigation-disputes\/what-is-a-living-trust.html","title":{"rendered":"What Is A Living Trust?"},"content":{"rendered":"
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A living trust is a trust in which you have complete power of control during your lifetime and only takes effect at your death.<\/p>\n

You have many advantages that you do not otherwise have including:<\/p>\n

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  1. Avoidance of probate.<\/li>\n
  2. Privacy of documents, beneficiaries and assets.<\/li>\n
  3. More control over how your estate is distributed.<\/li>\n
  4. Immediate distribution of assets after death.<\/li>\n<\/ol>\n

    Probate is the legal process<\/a> used to transfer your assets after death to your named beneficiaries. It is a long and cumbersome process, in many cases taking two years to complete. Sometimes, for out- of- state property, additional probates must be opened in the state in which the property is located requiring additional fees and costs.<\/p>\n

    For example, attorneys’ fees<\/a> specified by statute for an estate of$500,000.00 are $11,150.00. In addition, court costs and appraiser fees must be paid. Also, if special services are required of the attorney, such as, selling real property through public notice and sale, or opening out of state probates, additional attorney fees will be paid. If the estate representative, such as an executor, does not waive his\/her fees, he\/she will be paid, as in the above example, an additional $11,150.00. Even a very small estate of $100,000.00, the probate attorney fees is $3,200.00.<\/p>\n

    Under a living trust<\/a> probate can be avoided entirely. Property is transferred during your lifetime to yourself as trustee and at your death your assets are almost immediately transferred to your beneficiaries. This avoids having your beneficiaries, usually a spouse, from: hiring an attorney; filing court papers; and, petitioning the court for temporary living expenses, among other requirements, while probate is pending.<\/p>\n

    A living trust is revocable and you have complete control over its assets. There is no tax consequence to this transfer. You can always add, subtract, and modify any assets held in your trust as well as change the beneficiaries or the amounts they receive, (or when or how they receive them). You can even revoke the trust in its entirety at any time. You, as the trustee, are charged with the duty of managing the estate property and seeing that all the terms of the trust are carried out. Much as you currently manage your own property at the present time.<\/p>\n

    A living trust<\/a> is a very technical legal document and must be carefully drafted to meet your specific needs, requirements and family situation. Other legal documents are needed at the time your living trust is prepared to accomplish all the benefits of the trust.<\/p>\n

    A competent trusts and estates attorney will prepare a standard living trust upon your request. The cost and complexity of a living trust varies from place to place and practitioner to practitioner. However, a typical package of services relating to living trusts commonly include:<\/p>\n