LA Probate Law: How Does Trusts Work
Over the last two decades, the popularity of Living Trusts has skyrocketed. No longer is a tool just for the rich, Living Trusts one of the most common estate planning tools in use today states LA Probate Law. This legal arrangement, usually drafted by an estate attorney, creates a separate entity called a Living Trust. A Living Trust is called that simply because it is created while you’re alive (as opposed to a “testamentary” trust created after death).
Trust
A trust is different from a will in that it usually allows for the private distribution of assets. The trust provides for the appointment of a successor trustee to manage the process after the death of the loved on. The process is usually commenced by sending a notice of administration to relatives and beneficiaries says LA Probate Law.. Depending on the terms of the trust, successor trustee may be required to continuing holding assets, prepare an accounting or file tax returns. It is important to remember that a trust only governs assets that are actually held in the name of the trust. Even with a trust, it is important to remember that there still may be times where it is necessary or advisable to commence a probate proceeding. After reviewing your estate planning documents, we can help you determine your next steps including whether or not to file a probate proceeding.
Living Trust
The Living Trust document itself names three different parties. The individual (couple) that establishes the Trust is named the Grantor (referred Trustor). The Trustee is the person named by the Trust as the controller of the Trust’s assets says LA Probate Law. On the receiving end, the Beneficiaries are the heirs that will benefit from the Trust once the Grantor’s have passed away. Almost anyone with an estate of $100,000 or more can benefit from having a living trust. Estates of $100,000 or more are often subjected to probate in their state of residence, which can cost anywhere from 2%-4% of the estate’s value in court and legal fees. The living trust also is useful for individuals subject to estate taxes. Through a living trust, a couple is able to maximize their Unified Credit to its fullest. It even accomplishes protection for individuals wanting to avoid conservatorship.
Will is Essential
A will is an essential back-up device for property that you don’t transfer to yourself as trustee. For example, if you acquire property shortly before you die, you may not think to transfer ownership of it to your trust — which means that it won’t pass under the terms of the trust document. But in your will, you can include a clause that names someone to get all of the property that you haven’t left to a specific beneficiary says LA Probate Law. A will is a good start but may not be the end of the process. A will sometimes stands alone and sometimes works in conjunction with a trust. A will contains instructions to the probate court about how your loved one wanted his assets distributed after death. A will does not, however, deal with non-probate assets which will be transferred without reference to the will.
LA Probate Law: How Does Trusts Work
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