The Estate Planning Living Trust: Protecting Your Assets And Your PrivacyFinding a good estate planning living trust attorney to assist you in maximizing your estate preservation may be the best thing you will ever do for your survivors. The popularity of estate planning living trusts has simply exploded in the past twenty years, and even those who do not consider themselves wealthy can still gain a tremendous benefit by having a living trust in addition to a will. An estate planning living trust document will establish a separate legal entity, the trust, and will name trustor/s the person or persons who are establishing the trust; the trustee/s, who will manage the assets of the living trust; and the beneficiaries, those who will inherit the assets of the trust on the death of the trustor. It's called an estate planning living trust simply because its terms are in effect during your lifetime, as opposed to those of a testamentary trust, which does not go into effect until after your death.
You don't have to die a millionaire for you to see some benefits from creating an estate planning living trust. The probate fees for the estates of those who pass on their assets through wills or who die intestate can range from 2% to 4%, and even if your estate totals $100,000, that fee can hurt even more than if your left $500,000 or more. Because it eliminated the probate procedure, an estate planning living trust will let you keep your plans for your estate private. As a distinct legal entity, your living trust is not subject to court supervision and your trustee will simply distribute the assets you placed in the trust according to the terms of the trust to your named beneficiaries. And they will be spared the lengthy delay which accompanies the probate proceeding. An attorney will be able to advise you on using a living trust to minimize your estate taxes. Having an estate planning living trust will allow married couples to take full advantage of the unified tax credit, and having a living trust will ensure that your assets will no fall into conservator ship should you become incapacitated. Estate planning living trusts can be structured to allow for the sometimes complicated relationships of blended families. On the case of second marriages and step children from earlier marriages, living trusts can make sure that the children of each spouse will inherit as their natural parents wish. You can place almost any kind of asset in an estate planning living trust, from your bank accounts and stock portfolios to your real estate holdings, and your life insurance policies. You simply change the title or name on the asset to the name of the living trust; an estate planning attorney will be able to word your trust in such a way that you will still maintain the ability to manage the assets as you please. If you designate your living trust as revocable, you can change its terms, or remove an assets, whenever you choose. There are limits, however, on how much protection a living trust will provide against estate taxes, so it's essential that you do not rely on one to completely protect your estate without first consulting with an attorney. |
