Is A Trust Right For You?
Perhaps the biggest benefit to creating a Trust is that avoid the probate process. Probate is the legal process that occurs after you pass away. A probate court will look at the validity of your will, have your property appraised, ensure that your debts have been paid and more.
A Living Trust is not subject to the probate process, so property and assets you leave go straight to your heirs without the lengthy delay and costs associated with probate.
Questions when establishing a trust:
1. Are you married? If you're married, your spouse will usually be able to inherit jointly held property without the hassle of probate.
2. Are you wealthy? The larger your estate, the more you should consider a Living Trust. Trusts are also a great way to transfer business ownership, so if you run your own small business, a trust can help if passing your life's work along.
3. Are you elderly? The assets you'd like to pass along in your Trust need to be held and owned in the trust. For example, say you want to pass along a home in your Trust.
No matter what, even if you have a Living Trust, you'll want to create a Will. It allows you to name guardians for your children and can create a catch-all beneficiary for any assets did not transfer to your trust.
How does a trust work?
A Trust has three main roles: the settlor, the trustee, and the beneficiaries. The settlor is the person who creates the Trust and the beneficiaries are the people (or person) who will receive whatever assets are in the trust. The trustee is the manager that holds the property until the Trust's conditions are met. This can be after death or, sometimes, when the beneficiaries become legal adults or certain other conditions are met.
Trusts are a great way to taking care of minors (children or, commonly, grandchildren). And Trusts are the best way to avoid the probate process, which can be both time-consuming, expensive and frustrating for grieving families.
Setting up a Trust is more complicated than a Will, it does much more than a Will alone. It's recommended you have your documents done professionally.
What's the difference between a Trust and a Living Trust? While both a Trust and a Living Trust allow you to leave property and assets for your heirs, a Living Trust actually lets you receive money or other assets from the Living Trust. can set it up so that your Living Trust pays your beneficiaries any way you choose.