A living trust is a legal document that places ownership and control of property into a trust, managed by a trustee for your benefit. It’s often used as part of estate planning and can be helpful in case of incapacity. Here’s what you need to know:

1. Living Trust Basics:

   • A grantor creates a living trust by executing a trust document.
   • The grantor transfers ownership of property to the trust and appoints a trustee to manage it.
   • You can choose to be the trustee (retaining control) or name a successor trustee.
   • Beneficiaries are individuals (or entities) who inherit trust property after your death.

2. Avoiding Probate:

   • One major benefit of a living trust is avoiding probate court.
   • Since assets in the trust are no longer technically yours, they don’t go through probate.
   • Only items still in your name would be subject to probate.

3. Transferring Assets:

   • To activate the trust, transfer ownership of assets into it.
   • For example, if you want your house in the trust, sign a new deed naming the trust as the owner.
   • Properly transferring assets is crucial to avoid probate.

4. Choosing a Trustee:

   • Be cautious when selecting a trustee.
   • Some states require professional management for trust validity.
   • An inadequately written trust can cost your loved ones more money.

Remember, a living trust isn’t the same as a living will. While a living trust deals with property distribution, a living will outlines medical treatment preferences. If you’re considering a living trust, consult an estate planning attorney to ensure it’s legally enforceable and meets your needs. 📜🏠

Please take advantage of a private consultation with Kevin about creating your Estate plan,
Call 209 649-5531.