Revocable living trusts are a way to ensure that an individual’s assets are distributed according to your wishes by a person of their choosing. Revocable means that it can be changed and adjusted while the creator is still living as circumstances change. If a person is competent and healthy, a revocable living trust can be dissolved or adjusted up until their passing.
Creating a living trust and will can make dividing your asset after a death a much smoother process for family members. Because they are revocable, lawyers can work with individuals or couples to help them develop a will or living trust that benefits them. Our team at WW Partners is committed to helping you plan your estate with ease and confidence. While talking about life after your passing can be difficult, it is important to start setting up a revocable living trust early.
How Do Revocable Living Trusts Work?
A living trust has three parties, the creator, the trustee, and the beneficiaries. A creator will put certain assets like property into the trust so protect them from being taken by others. A living trust will not be part of public records unless a trustee or beneficiary demands court approval. Once the creator passes away, the named trustee will be the person who distributes and manages the assets. They will ensure things are done according to the instructions in the will and could be involved in settling debts, handling probate, or paying back creditors. Beneficiaries are those who receive assets or monetary payouts from certain assets.
Signs You Need A Living Trust
- You own real estate: Owning multiple properties or ones in different states makes you a good candidate for a living trust. Putting these in a trust makes it easier for beneficiaries to see a reward from them and avoid extreme taxes.
- You have dependents or children: Living trusts allow you to set when and how assets are distributed. If children are minors upon your death, the assets can be held until certain criteria are met (age, marital status, etc.)
- You fear your will might be contested: Trusts are harder to contest than a will, so if you want your wishes and assets to be ironclad, put them in a living trust.
- You want to avoid probate: A trust allows for a faster and more private transfer of assets
- You have complex assets: The more assets you have and the more complex they are, the harder it will be for a non-named trustee to distribute. Complex portfolios or family business interests work best in a trust.
Consulting An Estate Expert To Avoid Choosing The Wrong Trust
Those who can benefit from someone else’s trust or will may persuade individuals into choosing the wrong trust for their unique needs. Working with an estate lawyer who is well versed in living trusts can help individuals find an option that will protect them and their beneficiaries. Before sitting down and creating a will or living trust, it is important to research a local lawyer or estate planning firm to ensure they have their clients best interests at heart.
Client-Focused & Results-Driven
Why Choose WW Partners
WW Partners handles estate and business issues, including living trusts. We focus on providing clear insight on your unique situation and helping you obtain optimal results for legal proceedings. If you are living in Salt Lake City or surrounding areas, we can provide peace of mind for individuals, businesses, or real estate owners. WW Partners and our team of professionals are here to stand with you, every step of the way.
Frequently Asked Questions
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What Is The Difference Between A Living Trust And A Will?
A will and a living trust both contain instructions for how you want your assets to be passed down. Wills don’t have the same level of privacy as trusts because wills are public probate records. A living trust is more expensive and time consuming to create, but offers a lot more peace of mind and timely distribution than a will.
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Do I Have To Put A Lot Of Money In A Living Trust In The Beginning?
This is up to each individual, but you have the option to only have the trust funded upon your death. Because revocable trusts can be changed, you are able to add different assets or contributions as you go. You have the option to put the full asset amount inside your trust, or a small amount. There is no right answer as each option has benefits for specific situations. Consult with your estate attorney to learn more about how much you should be putting in a trust.