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A living trust is where you entrust certain properties and or funds to either one individual or group of people, using a trust you set up while you are living and in the right state of mind. The person or people become you beneficiaries and you can change your living trust at any point in time that is needed.
There are four different parties to a Living Trust. One is the Grantor, the grantor is the person who sets the trust up. Next is the Trustee, this will be the person or persons who will manage the Trust Assets. Then we have the Successor Trustee, who also manages the Trust Assets when the Trustee has passed away or becomes unable to make the decisions any longer. The Successor Trustee will have the same amount of control over the Trust as the Trustee had. They can buy, sell, borrow, or transfer any and all parts of the trust. Finally, we have the Beneficiaries, this is the person or persons who receives the assets of the trust. Beneficiaries are often called heirs.
People can abuse a Living Trust so you need to be careful whom you have set up yours. A few things to look out for are ones that will tell you having a Living Trust will decrease your income taxes, which is not true. You will have complete control over your trust and since you can cancel it at any time you retain the assets and hence continue to pay the taxes on it. If an estate is involved, you will still be responsible for any and all taxes on the property.
Living Trust are not cheaper than wills, since you have to pay to move the assets around and with a will you simply state who will own the assets at the time of your death. Or possibly you have heard that if you have a Living Trust then you dont need a Will. This is not true though; you still need a Will for properties and other assets not covered by the Living Trust. A will also makes sure your final wishes are followed. A Living Trust is as venerable as a Will is, you need to make sure that you have expressed your wishes thoroughly and that you have them properly drawn up. This will not only help make sure your wishes are followed after you have passed away, but also make sure your loved ones do not unnecessary issues to deal with.
You might also want to check into Estate Planning and make sure you have all of your taxes in order. This includes state taxes and federal taxes. No matter how much or little property you own, you need to be sure that all of the financial needs are met. You also need to avoid Living Trust Kits. These do it yourself Kits are generally frauds and you send money while not receiving anything in return or the proper information. You can help yourself in choosing someone to draw up your Living Will by knowing some of the terms involved. One such term is Probate. Probate is where you, your trustee or beneficiary goes to a Probate court with a list of your assets. However, this process can be very expensive and take a lot of time. You need to know before hand if you even have to go this route since you might be able to use the Expedited or Unsupervised Probate. You can find out this information from your local clerk’s office.
If you think of hiring a company to do your Living Trust, you have a couple of options to check and see if they are truly legitimate. You can check with your attorney, who might have the means and knowledge of helping you draw up your Living Trust. You can also go to the Better Business Bureau to find out if the company you are thinking of using is actually legit.