What is a Living Trust?

Have you heard your friends talk about putting their homes and other assets into a living trust? But what is a living trust? A living trust is a form of estate planning that allows you to control your assets while you are alive and have them distributed according to your wishes after you die. There are several reasons why it is important to have a living trust.

First, it can help to ensure that your assets are distributed according to your wishes. If you die without a will, your assets will be distributed according to the laws of intestate succession for your state, which may not be what you want.

Second, a living trust can help your heirs to avoid probate. Probate is a court process that is required to distribute assets when someone dies. It can be expensive and time-consuming, and it can also be public. A living trust can avoid probate, which can save your heirs time, money, and insure their privacy.

Third, a living trust can provide for your loved ones if you become incapacitated. If you become unable to make decisions for yourself, a living trust can provide for your care and the management of your assets. This is a very important aspect of a living trust.

If you have any questions about living trusts, please consult with a wills and trusts attorney.