When most people think of estate planning, typically they think about what is going to happen late in life, or what will happen after they have already died. However, there are certain aspects of estate planning that can affect you, and potentially benefit you, right now. One such element of estate planning is known as the living trust, and for some people, it can be a great boon and an organizing tool.
A living trust, also known as an inter vivos trust, is a kind of legal arrangement where someone (known as a grantor or trustor) gives someone else (known as a trustee) control over some amount of their personal assets. This trustee is then legally obligated to watch over the assets on behalf of a beneficiary named in the trust agreement, who in a living trust is typically the grantor themselves. A living trust is also considered a revocable trust, meaning it can be altered freely, including having assets added or removed from the trust as the grantor sees fit.
What makes a living trust useful for estate planning, however, is what happens when the grantor dies. Upon the grantor’s death or at another given point, the living trust either distributes all of its assets to the designated beneficiaries, or can continue for the benefit of beneficiaries designated in the trust agreement. In effect, it goes from being a legal haven for the grantor’s assets to being a means of transferring your property to your designated heirs without the need for probate. Unlike a last will and testament which in order to probate requires that the decedent’s next of kin be notified not only of the probate but given a copy of the Will, there is no need to do so with a trust. It is therefore not necessary to notify anyone of its provisions.
While the upfront costs of creating a trust are greater than preparation of a last will and testament, the benefits of the trust, and the overall costs of creating and administering the trust might end up being more cost effective and in some instances a better way of achieving your goals. Contact me to discuss your particular situation and see if a living trust is right for you.
If you or your loved ones are dealing with issues related to elder law, trusts, estates, or real estate, please give the law offices of Mary LaManna-Ulrich a call at (516) 804-2931. We will be happy to provide a consultation and work with you to figure out how best to address your personal concerns.