What Is Living Trust
Is It Right For You and Your Beneficiaries: Five Reasons You Should Forgo Having A Living Trust
The majority of people looking to deal with their estate will use a living trust to transfer some or most of their property. Of course, not every single person needs a living trust. Before divulging deeper into what a living trust is, you should really determine if you need one for now. You shouldn’t need a living trust if:
1 – You’re Young, You’re Healthy - Most people begin any estate planning goals when they’re in their 30s and 40s. They want to ensure that their property is distributed like they want if they should die suddenly and if they have children to take care of. A will along with life insurance will meet these goals easier than a living trust. There are thousands of young people making the decision to have a will and make up the living trust down the road when death is likely.
2 – You Can Easily Transfer Possessions Using Other Probate-Avoidance Devices – Keep in mind that living trust is not the only thing you can use for your estate and possessions. You also have life insurance, joint tenancy and “pay-on-death” bank accounts or stock accounts.
3 – You Have Complicated Debt Problems – When you die and you have a lot of creditors, a probate will give them a cut-off time that they can file a claim against the estate. If they’re notified of your death and don’t file in the proper amount of time, the beneficiaries of your will can take the property free and clear of worry that the creditors will stake a claim in it. However, a living trust does not allow for this kind of cut-off period.
4 – There’s Nobody You Can Trust To Overlook Your Trust When You Die – You must have someone you trust completely to serve as the executor of your estate for your living trust. No court will oversee this person to ensure that he/she complies with the living trust. If you’re not able to trust a single person to take care of your affairs after you die, you don’t need a living trust then.
5 – You Don’t Own A Lot Of Property – If you don’t have a lot
of property to speak of in a financial sense then you may not have a
reason for a living trust and probate avoidance.
The majority of people who decide to work on their estate planning are
older and are concerned about probate avoidance. It’s for these folks
that a living trust is necessary. A living trust can help many people
in your life inherit the property with no cost to them.
How To Handle Living Trusts and Children
With the help of a living trust, you can leave property to your minor children and grandchildren. There are many married people who name their significant other as the trust beneficiary and then their children as an alternative beneficiary. If you do decide to leave property to minor children, regardless of their living trust status, you need to ensure that the trust document is in the hands of a capable adult management. This can be done by using the state’s UTMA.
For more free legal advice and helpful resources, go to Legal Forms site, and you can find many legal related information and useful legal forms that are completely free of charges, including Living Trust Forms that can be used by those who want to set up estate planning with or without the help of lawyers.