Living Trust
A living Trust, one established while you are still alive, enables you to control distribution of your estate even better than a will. Unlike a will, a living trust does not need to go through the hassle and expense of probate. When you establish and maintain a living trust, your estate will be available to your heirs at your death without the delays or expensive court proceedings that accompany the probate process.
How do they work?
After establishing a living trust, one simply transfers ownership of their assets into the trust. The person, or persons, establishing the trust can name themselves as trustees charged with the management and care of all trust assets. Although the trust is the legal owner of the assets, the trustees maintain control over their distribution and use, allowing them to buy, sell, use, or gift assets as they see fit. As a result, the individuals establishing the trust do not have direct ownership of the assets, and there is nothing to probate upon their death.
There are some trust strategies that serve fairly specific estate planning needs. One of the most common is the A-B trust, which enables you to double the estate tax exemption and pass more money to your family. Another popular trust strategy is the insurance trust, which enables you to provide ready cash for your heirs to pay estate taxes and fees without adding to your taxable estate plan.
Trusts have been in use for decades. For a long time, they have been perceived as a tool of the rich, but they are available to everyone. LPS can assist you in preparing a trust and complete estate plan specific to your needs.