IF YOU OWN A HOME OR HAVE MINOR
CHILDREN, A LIVING TRUST IS FOR YOU.
A REVOCABLE LIVING TRUST, also known as a LIVING TRUST, is a modern substitute for a traditional
Will. Like a Will, the purpose of a Living Trust is to distribute
your estate at death. Wills are no longer desirable, because a
traditional Will puts your estate into court at death, a process called
Probate. Probate is costly (3-10% of the gross value of the
estate), and time-consuming (1-2 years on average), as well as
frustrating for your heirs.
Living Trust, properly funded, will AVOID THE PROBATE process, its time
consumption, and its cost. With a Living Trust, your estate will be
distributed to your heirs with minimal expense , and, usually, in less
than six months!
a Living Trust, you name yourself as the Trustor (person who sets up the
Trust), the Trustee (person who manages the Trust), and Beneficiary
(person who gets the assets from the Trust). As Trustor, you, and only
you, can make changes to the Trust, via Amendment, or cancel the Trust,
by revoking it. As the Trustor, you have complete control over the
terms of the Trust.
the Trustee, you manage your estate, much as you do now. You can
buy, sell, invest, bank, and give assets out of the trust, as you
wish. In the Trust, we will name Successor Trustees, who will take
over management of the Trust whe you are deceased, or incapacitated.
you are deceased, your Beneficiary will inherit the estate, under the
terms of the Trust.
benefits of a Living Trust include:
conservatorship on your estate if you become incapacitated;
the assets of the estate while you are alive, and, if you wish,
after your death. You can prevent wasteful heirs from
depleting their inheritance, and protect the inheritance of disabled
couples, a Living Trust can save, potentially, hundreds of thousands
of dollars in Estate Tax (inheritance tax or death tax);
receive a step-up in basis at your death, thereby reducing or
eliminating any capital gains for your heirs when they sell
Mind, knowing your estate will go only to the heirs you with to
inherit, not to any other people.
As you can see,
the Revocable Living Trust has many advantages over a traditional Will.
No wonder so many families are using it to their advantage!
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