Living Trusts And Legal Issues

Establishing a legal trust is an important component of estate planning. Most lawyers recommend setting up a living trust if your estate is worth more than $100,000. Your trust can serve as a financial blueprint that tells the court how your affairs are to be handled once you’ve died or have become incapable of handling them yourself. Living trusts aren’t simple documents. You should hire the guidance of a trained estate planning lawyer to help you design a living trust that’s uniquely-suited for your estate. In this article, we’ll explain the basics of trusts, why you should consider having one and whether you still need a will.

Basics Of Living Trusts

A living trust is simply a legal document that spells out how the assets placed in the trust are managed. The trust can be established to provide financial support for your family when you die. It can be used to provide money to heirs over a long period of time (as opposed to a one-time distribution from a will). You can even specify how money is transferred to your heirs for a given set of conditions they must meet. For example, you can require your son or daughter to remain in college until they graduate in order to receive money from your trust. An attorney can help you create a trust that legally addresses any requirements you have.

Why A Living Trust Is Important

By using a trust to manage the assets placed within it, that portion of your estate escapes being divided by the court. Because probate court is often a long and expensive ordeal, avoiding it has 2 major benefits. First, your assets can reach your heirs and beneficiaries immediately. Second, the assets won’t be subjected to court fees (including those imposed by lawyers).

Wills And Trusts: Are Both Necessary?

It’s strongly recommended that you have both a will and a living trust. There are a couple of reasons for this. First, it’s possible that your living trust doesn’t include all of your assets. For example, if you acquire an asset years after your trust has been created, that asset isn’t included in the trust. However, you can update your will to include that particular asset and add a provision that transfers it to your living trust after you die. Second, your will can stipulate how the role of guardianship is determined for your children.

Getting Legal Help

Remember, living trusts can be complex. It’s possible to establish one without the help of an attorney, but doing so is discouraged. There are several types of trusts and each comes with inherent benefits and drawbacks. Plus, the circumstances surrounding your estate are likely to be unique. You should consult with an estate planning lawyer who can offer guidance and advice. Creating a trust is easy. Creating a useful, powerful living trust that sufficiently protects your estate requires legal help.

Virginia Lawyers Carlson & Collier Law Firm 

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