A living trust is simply a trust that an individual such as yourself will create while you are living. The person creating is usually called the grantor. It is normally set up to avoid probate. It gives the grantor a lot of flexibility as it can easily be amended. Therefore if the grantor wishes to make a change it can be done rather easily. Yet it passes the grantor’s property directly to the beneficiaries upon the occurrence of certain conditions stated in the trust and without the legal process of having to go to court and going through probate.
Reena Gulati Blog
Simple wills will likely not be sufficient to address the goals of your current spouse and children from a prior marriage or stepchildren. A trust will be the better option. However, the specifics of your family fact pattern will determine the kind of trust and what is included in the trust that should be in keeping with the financial goals for your family. Although it requires a little bit more time and attention, it can avoid many misgivings and acrimony with your loved ones and plan for an easier transition.
If avoiding probate is your primary goal, then you can achieve that simply by having a living trust, the most effective way to avoid probate. With a living trust, you control how your estate will be distributed, how it will be managed if you do not have the capacity, and finally what happens to your estate when you pass on.
Most people have a fear of the unknown. However, if you a have plan in place, it helps settle your mind. In the case of an estate plan, it also can ensure you take care of your family. These tough times present the perfect opportunity to review your existing estate plan or if there is no plan, to put one in place for the following six reasons:
For most people, their house is their biggest financial asset, so avoiding costly mistakes is critical. The same is true of buying other real estate since it usually involves a substantial amount of money. No matter if it is your first time or the sixth in buying real estate, problems can arise. However, you can minimize the risks by having the right team of professionals, including your real estate broker, inspector/engineer, attorney, and/or lender to help guide you through the process and ensure a smooth closing.
