Is a Living Trust for you? : Rooftop Views

Rooftop Views

Is a Living Trust for you?

If someone mentioned a Living Trust to you, what would you think? I don't have those kinds of assets. I'm young so I don't need this. Way too complicated for me!!

Maybe you should reconsider. A will provides for distribution of assets at the time of death - and that's about it. A Living Trust is effective immediately and is an efficient way to manage assets in the event of incapacity, as well as the distribution at time of death.

The Living Trust document lists three parties - the person who owns the trust (that is generally you), the person who will control the trust (that is usually also you), and the recipient of the trust (your beneficiaries). The document is changeable throughout life. Beneficiaries can be changed, the plan of distribution can be changed and, in the case of small children, the person to watch over their interest in the trust can be changed.

Everything a person owns, except for certain retirement accounts, can be place in the Living Trust. The main reason people use a Living Trust is to avoid probate. Rather than go through a possibly long and expensive court process, the beneficiaries can receive the benefit of their interest in the trust almost immediately.

If you own property in more than one state, you will almost certainly want to investigate a Living Trust. Otherwise, your estate may have to open probate in several states with resultant fees and expenses.

Before you decide that a Living Trust isn't for you, contact an estate planning attorney. It may be the best money you spend.