Revocable living trusts are a good alternative to last wills largely because of the fact that they enable the transfer of assets to your family members outside of the process of probate.
Why would you want to avoid probate? There are a few reasons, and perhaps the most pressing one is the fact that there are significant expenses that go along with the probate process. By the time all is said and done the value of your estate can be shaved down by perhaps 5% to 10%, and this is of course very real money that could have otherwise gone to your loved ones.
Revocable living trusts are a mystery to some people but when you examine the anatomy of such a trust you see that they are relatively simple and straightforward instruments.
The person who creates the trust is called the grantor or settlor. He or she must appoint a trustee to administer the funds that have been placed into the trust, and a beneficiary must also be named to benefit from the assets therein.
The settlor will often act as both the trustee and the beneficiary while he or she is still alive and capable of making sound decisions. The settlor will also name a successor trustee and a successor beneficiary or beneficiaries who will step into these roles upon the death or incapacitation of the creator of the trust.
A living trust is a very viable probate avoidance solution. If you would like to learn more about these trusts take action right now and arrange for a consultation with a good Indianapolis estate planning lawyer.
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.
Latest posts by Paul A. Kraft, Estate Planning Attorney (see all)
- If a Beneficiary Dies During Probate What Happens to the Inheritance? - September 18, 2019
- Is Your Power of Attorney Powerless? What to Do When a Third Party Won’t Honor an Agent’s Authority - September 11, 2019
- Are There Different Types of Special Needs Trusts? - September 4, 2019