Before we look at the specific question that serves as the title of this entry, we should explain the value of living trusts for those who do not fully understand why you may want to use this type of trust.
A living trust is an estate planning tool that provides a great deal of flexibility and control. You can act as the trustee while you are living, so you administer the trust throughout your life. As the creator of the trust, you can also serve as the beneficiary initially.
There would be no one else to answer to while you are alive and well. You would be the sole controller of the actions of the trust.
To facilitate asset transfers after you die, you create a trust declaration, within which you name a successor trustee along with successor beneficiaries. In this declaration, you can include stipulations that the trustee would be compelled to follow regarding the nature of the asset distributions. If you choose to do so, you can prevent a beneficiary from spending his or her inheritance too quickly.
The successor trustee could also be empowered to administer the trust in the event of your incapacitation. Many seniors do become unable to handle their own finances at some point in time, and the widespread nature of Alzheimer’s disease is a very big factor here.
The distributions that would take place after your death would not be subject to the probate process, and this is another advantage, because probate is time-consuming, and it is often quite expensive.
Changing a Living Trust
Another nice thing about a revocable living trust is the ability to change the terms of the trust along the way. You can convey newly acquired assets into the trust at any time. Plus, you could use a trust amendment to make changes to the trust’s provisions.
If you wanted to make very significant changes to the terms of the trust, you could create a restatement of trust. You would not be dissolving the original trust, so the sweeping changes could be made in an efficient manner.
Living Trust Report
The more you hear about living trusts, the more interested you may become. If you would like to obtain some additional information, download our in-depth report. This report on living trusts will answer most of your questions, and it is free.
To get your copy, visit this page and follow the simple instructions: Free Report on Living Trusts.
Estate Planning Consultation
We can help if you would like to take things a step further. Our firm offers free consultations, and we would be glad to provide you with recommendations. To set up an appointment, send us a message through our contact page: Indianapolis IN Estate Planning Attorneys.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
- Debunking Estate Planning Myths - May 30, 2023
- Do I Need an Indiana Advance Directive? - May 25, 2023
- Which Document Is More Important in My Estate Plan — a Will or a Living Trust? - May 23, 2023
