The Basics Of A Living Trust
Definitions you will need to know:
Living trust — A property right, held by one party for the benefit of another, that becomes effective during the lifetime of the creator and is, therefore, in existence upon his or her death.
Beneficiaries — An organization or a person for whom a trust is created and who thereby receives the benefits of the trust. One who inherits under a will. A person entitled to a beneficial interest or a right to profits, benefit, or advantage from a contract.
Assets — property available for the payment of debts of a person or company in the event of insolvency or, in the case of a person, on death. Such property includes real estate and personal estate and property over which a person has a general power of appointment.
Why Do I Need A Living Trust?
That is the heart of a living trust centered estate plan.
Protecting your family.
Protecting your assets: house, property, 401k, stocks, etc.
Protecting the things you worked so hard for your entire life.
Rules: Your day-to-day handling of your trust. These are decided by you. Whatever, whenever, and however you see fit to organize them, they are entirely at your discretion.
Split it up amongst your family?
Give it away?
What is done with your assets is completely up to you.
Recipe: Basically, what happens when you and your spouse pass away?
Who are your beneficiaries?
How much do they receive?
How and when do they receive it?
**important: this is where trusted legal counsel is necessary. Options, tax implications, laws, etc. all need to be taken in to account when putting together your living trust. This is about ensuring your families future. Having an expert putting it all together is the way to do that.
Assets: Basically, your home, property, 401k, bank accounts, etc. Learn how to add and subtract them from your trust. Legal advisors understand that things change. The good ones show you how to handle changes yourself and be comfortable with it, so there is no need to pay your lawyer every time something changes. The clients having control is central to a solid living trust.
If you have any questions please visit my website, and watch my fun and informative videos about all the aspects of wills, living trusts, and estate planning.