What's a Living Trust?
Living trusts enable you to control the distribution of your estate, and
certain trusts may enable you to reduce or avoid many of the taxes
and fees that will be imposed upon your death.
A trust is a legal arrangement under which one person, the trustee,
controls property given by another person, the trustor, for the benefit
of a third person, the beneficiary. When you establish a revocable
living trust, you are allowed to be the trustor, the trustee, and the
beneficiary of that trust.
When you set up a living trust, you transfer ownership of all the
assets you’d like to place in the trust from yourself to the trust.
Legally, you no longer own any of the assets in your trust. Your trust
now owns your assets. But, as the trustee, you maintain complete
control. You can buy or sell as you wish.
Upon your death, assuming that you have transferred all your assets
to the revocable trust, there isn’t anything to probate because the
assets are held in the trust. Therefore, properly established living
trusts completely avoid probate. If you use a living trust, your estate
will be available to your heirs upon your death, without any of the
delays or expensive court proceedings that accompany the probate
process.
The surviving spouse retains full control of his or her trust. He or she
can also receive income from the deceased spouse’s trust and can
even withdraw principal from it when necessary for health, support, or
maintenance.
On the death of the second spouse, the assets of both trusts pass
directly to the heirs, completely avoiding probate.
certain trusts may enable you to reduce or avoid many of the taxes
and fees that will be imposed upon your death.
A trust is a legal arrangement under which one person, the trustee,
controls property given by another person, the trustor, for the benefit
of a third person, the beneficiary. When you establish a revocable
living trust, you are allowed to be the trustor, the trustee, and the
beneficiary of that trust.
When you set up a living trust, you transfer ownership of all the
assets you’d like to place in the trust from yourself to the trust.
Legally, you no longer own any of the assets in your trust. Your trust
now owns your assets. But, as the trustee, you maintain complete
control. You can buy or sell as you wish.
Upon your death, assuming that you have transferred all your assets
to the revocable trust, there isn’t anything to probate because the
assets are held in the trust. Therefore, properly established living
trusts completely avoid probate. If you use a living trust, your estate
will be available to your heirs upon your death, without any of the
delays or expensive court proceedings that accompany the probate
process.
The surviving spouse retains full control of his or her trust. He or she
can also receive income from the deceased spouse’s trust and can
even withdraw principal from it when necessary for health, support, or
maintenance.
On the death of the second spouse, the assets of both trusts pass
directly to the heirs, completely avoiding probate.
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