Have you ever thought very much about what will become of your property and possessions when you pass away? Will your loved ones be in a good position to carry on without you? To ensure that your belongings are transferred smoothly, you should consider setting up a living trust. This legal action protects your assets and ensures that they go into the right hands upon your death. You can speak to a lawyer today about whether it makes sense for you to do this.
In a Nutshell
Unlike a will, which takes effect when you pass away, a trust is valid from the moment you set it up. It is a type of fund where you transfer ownership of whatever property or belongings you have into the trust. The trust also identifies how the valuables will be distributed and to whom they will go when you die. Once you set up a trust and put your assets in it, they are no longer your property; they belong to the trust. You will name a trustee to make sure the transactions take place at your passing. You will also designate beneficiaries who will inherit the items in the trust.
What to Include
An advantage of a living trust is that just about anything with value can go into it. Some examples are investment properties and other real estate, vehicles, bank accounts, investment accounts, and collections. You should be specific when setting up the definitions of the trust, such as to whom certain items will go, and any provisions you have for those individuals. For instance, you could deem that a child or grandchild can’t inherit your vehicle until he or she is 21. Or, you could state that your nephew must finish graduate school before having access to your savings account.
There are two types of living trusts: a revocable living trust and an irrevocable living trust. The former is far more common because of its flexibility. You are free to alter it at any time. You might do this if a family member to whom you would pass on property passes away. It’s best to work with an experienced attorney when setting up a revocable trust.
If you have a large estate and are concerned about what might happen to it when you die, think about setting up a living trust. You can ensure that your possession will not get caught up in legal entanglements. Contact a lawyer, like an estate planning lawyer in Melbourne, FL from the Law Offices of Arcadier, Biggie, & Wood, for more information.