Also known as revocable living trusts, living trusts are used to enable your beneficiaries to avoid probate.
By creating your living trust, you’ve arranged your estate in a way that makes it easy for your family and loved ones to settle your estate. Also known as revocable living trusts, living trusts are used to enable your beneficiaries to avoid the court and attorney-involved probate process after you pass away. The following are three steps to take when setting up your living trust.
In order to create your living trust, you’ll need to be prepared to answer the same questions you would be asked if you were preparing a last will. Be prepared to answer the following questions:
Whether you get assistance from an estate attorney or an online platform, make sure you answer all the questions you are asked to the best of your ability. If there are questions that are tough to answer, it’s usually best to go with your first instinct - you can always restate your trust later if necessary. Then, review the customized provisions of your trust instrument to ensure that it reflects your intentions.
Finally, sign your trust following the appropriate formality requirements to make it valid. Make sure you also do the following:
Do this and be rest assured that you’ve done most of the estate settlement work upfront, making the settlement of your estate faster, easier, and with less expense.
Even if you don’t consider yourself wealthy, you should consider establishing a living trust as part of your overall estate plan. The extra work you do creating your trust and transferring assets to your trust can save your estate and your heirs significant time, effort, and hassle in the future. A well-prepared living trust can also prevent conflict among relatives since the trust will clearly lay out each person’s rights and the settlement of your trust will be outside of government interference.
This post was written by MyAdvocate's team of estate planning attorneys.