LA Probate Law Myths of Living Trusts
When a person begins the process of estate planning one of the first things that they should do is seek legal counsel from an LA probate law attorney who has experience with this field of law. You need to understand what you are doing and what you are getting yourself into and all the complex avenues that are involved with wills, living trusts and estate planning. Living trust in particular for many years have been pushed as the magic way of avoiding probate. However most people do not fully understand what they are doing or what might be best for them. It is important to take into consideration each individual and their circumstances before deciding on which form of estate planning would be the most beneficial. Not everybody needs a revocable living trust although most people who get involved with estate planning have that is the foundation that they build from. Some people would benefit more from having a well drafted will or power of attorney or even just an advanced health care directive. By doing a little research and seeking good legal advice you can save yourself time and a good deal of money. Here we will help you to understand a little more in depth of what is involved in a trust. It will also help you to understand and have a better idea as to whether or not a living trust is the best consideration for you and your family. Each individual situation is unique and consideration taken for these unique situations should involve thorough knowledge.
By hiring a knowledgeable LA probate law attorney you do not need to know all of the legal terms that are involved with probate law but understanding the basics and the definitions as many vary can help make the entire process a little bit easier for you. Will is a document that is made specifically to help distribute assets and property to beneficiaries including spouse, children and other next of kin when a person dies. It also allows you to a point of Guardian to take care of your children in the event of your death. When deciding who gets what in your will is important to remember that you can only disburse property and assets that are solely owned by you. You cannot distribute property or assets that are in your name as well as the name of your spouse or another person. These assets will automatically be distributed to the other joint owner and this is done outside of your will. Probate is the actual legal process of transferring all of these assets to the heirs that you wish them to be distributed to. Trusts are like accounts that have unique and special features within them. You take your assets and deposit them into the account either while you are still alive or at the time of your death. A trusted person is been appointed to maintain the account and this is called the trustee. The trustee will manage the account when you have died and will then distribute all of the assets and properties within the account to the beneficiaries by following specific instructions and you have lain out.
A living trust is something that you create in your lifetime. You transfer all of your assets including homes, bank accounts, securities and other investments and while you are living you are the trustee. A successor trustee will be named to take over in the event of your death and that person will be responsible to distribute all of the assets that you have put into the trust to your spouse and children. Because all of these assets were put into this account while you were living in they were no longer in your name they can be distributed outside of the probate courts by the successor trustee in accordance with LA probate law. Many people set up a living trust Pacific we to avoid probate. However maintaining a living trust requires ongoing attention and most people cannot justify that added expense that it causes. The probate court itself is responsible for overseeing peoples and states. They are also responsible for appointing conservators to help deal with and take over when a person is unable to manage or take care of their own lives in most cases this is a waste of time and money if you are solely doing it to avoid probate.
There are many myths regarding LA probate law that causes people to avoid making a simple will and relying on living trusts. Some of these myths include saving money in court fees by choosing a living trust over will, your assets being tied up in probate court, living trusts save you taxes and that living trusts are the only way to deal with disabilities. When it comes to the myth of court fees in need to remember that there will be fees based upon the value of your assets whether you have a will or living trust and whether or not the assets can be administered through the probate system or not. There are some situations that cause estates to take years before they can be settled within the probate court. In these situations however you will find that the assets involved are hard to put a value on or there had been some kind of disagreement that has come up between beneficiaries. These are the kinds of situations that occur causing estates to get tied up within the probate court. They are not the norm and do not happen all the time. In order to properly determine what is the best avenue for you to pursue and to wipe out any myths or misunderstandings pertaining to those avenues it is advised that you seek professional legal counsel. Each situation is unique and needs to be dealt with accordingly.
LA Probate Law Myths of Living Trusts
Latest posts by Scott Schomer, Estate Planning Attorney (see all)
- What are the Advantages and Disadvantages of a Living Trust? - January 15, 2019
- Why Avoid Probate? - January 10, 2019
- When Do I Need a Tax ID Number for a Trust? - January 9, 2019