A Revocable Living Trust, also known as a Family Trust or AB Trust, is a trust that is created during the your lifetime and that the you have the power to revoke while still living.
The major benefits of a Living Trust are as follows:
– To avoid probate after death;
– To provide a method for management of your property in the event of your incapacity;
– Gives you control over the assets you leave to your children or grandchildren.
– Maximize your Estate Tax Planning
– Allows you, not the probate court, to control who gets your assets after death
– Living trust is confidential and the transfer of assets from the living trust is kept from public view.
A Living Trust is in existence during while you are alive and has a trustee, the person who manages the trust and its assets under the terms of the trust, which may be you or another person you designate. A trust must own property which you transfer to it during your life. While you are living, the trustee (who may be you) is responsible for managing the property as you direct for your benefit. Upon your death, the trustee is generally directed to either distribute the trust property to your beneficiaries, or to continue to hold it and manage it for the benefit of your beneficiaries. Like a will, a living trust can provide for the distribution of property upon your death. Unlike a will, a living trust can also (a) provide you with a vehicle for managing your property during your life, (b) authorize the trustee to manage the property and use it for your benefit (and your family) if you should become incapacitated, thereby avoiding the appointment of a guardian for that purpose and (c) manage your assets the way you want for your children after your death.
For a trust to be effective it has to own title to the property or asset. Remember, when you transfer title of your assets into the trust it is called “Funding your Trust” (See Below for Trust Funding). Funding is the process of transferring the name on accounts or property to the name of the trust. Our office will assist you with transferring all of your assets to the trust.