The revocable living trust is a very versatile and effective estate planning tool. One of the major advantages is the fact that asset transfers that are facilitated through the terms of a living trust are not subject to probate.
This is a court proceeding that would enter the picture if you express your final wishes in a simple will. Inheritances are not distributed while the estate is being probated by the court, and it will take close to a year in most cases.
Another drawback is the fact that anyone that is interested can obtain probate records to find out what transpired during the process. Considerable expenses accumulate during probate as well, so a lot of people choose to avoid it.
Since a living trust would be revocable, it can be rescinded or dissolved at any time. This would rarely be necessary, because the grantor would have complete access to all property that was signed over to the trust every step of the way. Additional property can be added at any time, and the grantor can change the terms of a living trust.
Shared Living Trusts
If you are married, depending on your intentions, a shared living trust could be very good choice. This would be the way to go if you and your spouse have a lot of jointly owned property, and you want to leave your individual interests in the property to one another.
At first, you and your spouse would be co-trustees and beneficiaries. After the death of one spouse, the survivor would become the sole controller of the living trust.
Even if you and your spouse have separate property that you want to pass along to others, this can be done if you have a shared living trust. You simply have to put this property on a schedule and state your wishes in the trust agreement.
Separate Living Trusts
Two people that are married have the right to establish their own separate revocable living trusts. This would be the better option if there is no jointly held property and the estate planning objectives of each individual are divergent.
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Since you are on this site, you must be interested in learning more about estate planning and/or nursing home asset protection. If you are on this path, we have numerous resources that you can access through this website, and we also offer webinars and workshops on an ongoing basis.
Because of the impact of the novel coronavirus, we are taking a wait-and-see attitude when it comes to the live, in-person workshops, but the webinars are working out very well.
You get the same information delivered in real time by a licensed estate planning attorney, but you don’t have to go anywhere to get it. This is a great way to invest some of your spare time and come away with a new level of understanding that will serve you well.
To see the schedule, visit our webinar page. When you identify the session that you would like to attend, follow the instructions to register so we can reserve your spot.
Schedule a Consultation Today!
If you are ready to get straight to the point and put a plan in place, we are here to help. Since there are many different ways to proceed, the ideal course of action will depend on the circumstances.
We can gain an understanding of your unique situation and explain your options so you can make fully informed decisions. After you approve of a plan, we will execute it to perfection, and you can go forward with peace of mind.
Once we have established a relationship, we will always be ready to help if you need to revise your plan in the future. We will also be well-positioned to assist your family during the administration phase, and this can be invaluable during difficult, confusing times.
To set the wheels in motion, give us a call at 310-337-7696, and we have a contact form on this website you can fill out if you would rather send us a message.
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- What Is a GRIT and Do I Need One? - May 7, 2022
