If you never considered the possibility of the utilization of a living trust as an estate planning tool, you should take some time to understand the benefits. You do not have to be extraordinarily wealthy to benefit from the creation of this type of trust, and in fact, very wealthy people who are exposed to estate taxes would want to go in a different direction.
When you establish a living trust, you are referred to as the grantor of the trust. Throughout your life, you can act as the trustee, so you would be in charge of the actions of the trust, and you can also serve as the beneficiary.
You fund the trust with assets that you ultimately want to leave behind to your loved ones. Your heirs would be the successor beneficiaries, and you would also name a successor trustee to administer the trust after your passing (or in the event of your incapacitation).
When you create the trust agreement, you can instruct the successor trustee regarding the way that you want the assets distributed among the beneficiaries after you are gone. You can allow for limited, incremental distributions rather than lump sums if you want to make sure that the beneficiaries have assets to draw from over the long haul.
These distributions would not be subject to the probate process, so the beneficiaries would typically be able to start to receive inheritances in a timely manner.
Now that you know why you may want to consider the utilization of a living trust, we can get into the specific question that we are addressing in this post. If you establish a living trust, there will probably be some assets in your possession at the time of your passing that you never conveyed into the trust.
To account for this, you could include a pour-over will when you are devising your estate plan. This type of will would allow the living trust to absorb assets that were in your direct personal possession, so the resources that comprise your estate would ultimately be consolidated.
Obtain More Detailed Information
When you do a little bit of research, you may well come to the conclusion that a revocable living trust is a better choice than a last will as a vehicle of asset transfer. If you would like to look into the subject, download our in-depth special report.
This report goes into a good bit of detail, but it is very easy to understand. The report is being offered to our readers on a complimentary basis right now, and you can obtain access to your copy through this website.
To get your copy of the special report, visit this page and follow the simple instructions: Free Living Trust Report.
- Estate Planning: Bryant Tragedy Serves as a Stark Reminder - July 2, 2020
- Coronavirus Underscores the Importance of Planning - June 30, 2020
- Can You Give Gifts to Avoid Estate Taxes? - June 23, 2020