Definition of a Living Trust
A living trust is a revocable trust that you create during your lifetime. In estate planning, a living trust can be one of the most important things you can do.
Is a living trust irrevocable?
Only if it is setup to be an irrevocable trust.
Sometimes they are called a revocable living trust (RLT).
Why Have a Living Trust?
One of the advantages of a living trust is that it avoids probate.
Another one of the benefits of a living trust deals with living trusts and taxes. If you have a large estate, it may be possible to delay or reduce your estate tax burden.
Finally, a revocable trust will help maintain your family’s privacy. Living trusts and wills are handled differently. The trusts help maintain privacy. Wills go through probate which is a public process.
Living Trust vs. Wills
These are two completely different estate planning documents, and they have very different purposes. The purpose of a Will is to leave gifts to your possible heirs and make it a public process through the probate courts. The purpose of a trust is to leave gifts, setup sub trusts, protect assets, protect your children from themselves, and do it all privately.
Living Will vs. Living Trust
These two things cannot be compared. A living will deals with your healthcare. A living trust deals with your stuff.
The process (probate) to get a Will handled may take months to years. A trust can be distributed immediately.
Who Needs a Revocable Living Trust?
Anybody that owns a home, owns a business, or has assets they want to protect. The cost for living trust is small in comparison to the amount of money, trouble, and time your heirs will be saved.
Setting Up a Living Trust and How to Get a Living Trust
The absolute best way to setup a living trust is to visit with an estate planning attorney. The attorney can walk you through all of the possibilities that you may have not even considered. With an attorney’s assistance, you will find that creating a living trust is not a hard experience. One of the best things you can do for yourself is setting up living trust documents. It is not suggested to setup a living trust online.