What is a Living Trust?
According to the Probate Court, a trust is an arrangement which takes effect during the lifetime of the creator of a trust. The two main reasons to consider a living trust are 1) keeping you and your assets out of probate and 2) to allow your beneficiaries to avoid the costs and hassles of probate.
· A trust may avoid probate on any assets that are titled in the name of the trust.
· The terms of the trust must be revealed to the beneficiaries and heirs when the terms become irrevocable.
· The terms usually become irrevocable when the creator of the trust dies.
· A trust may also be set up by a will, which leaves property in trust for a beneficiary.
· These trusts are called testamentary trusts and are usually irrevocable.
· While trusts may not be filed or registered with the Court, they may be registered or filed with your local county clerk’s office.
Essentially, a living trust is a legal document that states who you want to manage and distribute your assets if you are unable to, and it also states who receives them when you pass away. Having a living trust helps convey your wishes so your loved ones aren’t left guessing or dealing with the courts. The living trust also help to reduce adversarial relationships that develop amongst recipients.