How to Obtain a Living Trust
InvestorWords defines a living trust as "a trust created for the trustor and administered by another party while the trustor is still alive." The main benefit of a living trust is that it avoids probate court, so assets are distributed faster than a will. It also affords a greater deal of privacy as probate hearings are public record. One disadvantage of a living trust is that they take longer to put together and require more maintenance.
Other People Are Reading
Instructions
-
-
1
Communicate with your family, expressing your intentions. All your assets go directly to the beneficiaries in a will, but they go into the trust in a living trust.
-
2
Locate a good lawyer. Find an attorney who specializes in estate planning. Ask for references if possible. You are looking for a consultative lawyer, not a lot of forms to sign. The National Academy of Elder Law Attorneys is one place to start. See Resources below for a link.
-
-
3
Tell your attorney everything. This is a document that will represent your legacy to your family, friends and other loved ones. Do not be afraid to tell him exactly who gets what. Failure to be truthful about your intentions and interests can result in disputes when the living trust is administered.
-
4
Don't fret over costs. A living trust can cost six to seven times more than a will. However, wills might also require a probate hearing if there are any disputes, which can take months. These legal fees are taken out of estate assets. The trustee takes the place of the probate hearing.
-
5
Update the living trust regularly. If your trust is not up to date, it will be up to your trustee to work something out, which can be difficult from a "fairness" perspective, especially with extended family or stepchildren. Make an appointment with your trustee at least once a year.
-
6
Consider yourself. Unlike a will, a living trust isn't just for your heirs. You can also use the trust to pay for long-term personal care expenses. Health care costs can be paid for through your living trust. Be sure to discuss this option with your trustee.
-
1
References
Resources
- Photo Credit freedigitalphotos.net
