Understanding a Living Trust

You have a lot on your plate, so you may not spend much time thinking about end-of-life events and obligations. However, you should be prepared to leave your surviving loved ones with financial security. You also want your assets and property to be in good hands when you die, as an estate lawyer, like from Yee Law Group, can explain. One of the most effective ways to do this is to set up a living trust. This legal document spells out your wishes and gives people you depend on the authority to handle your financial affairs when you pass away.

The Basics

A living trust places bank accounts, investments, retirement accounts, homes, cars and other valuable possessions in a secure place during your lifetime. Once you die, they go to a person that you specify. This document lays out your desires so there will be a smoother transition at your death. The trust is revocable, however, meaning that you can make adjustments to it while you’re living. These alterations may come about due to various factors and life changes.

Breaking it Down

When you establish a trust, you will remain in charge of your finances and be the trustee. You can name a spouse as a co-trustee. As trustee, you can take funds, assets and property and move them in and out of the trust. You must also name a successor trustee. This person fills a crucial role because he or she will be in charge of distributing your assets when you die to beneficiaries. You must, therefore, choose someone with whom you have total confidence will administer your desires. The successor trustee will also be your representative should you become incapacitated in any way. In this case, the person can make important financial decisions, including business transactions, buying or selling a home in your name, or opening or closing financial accounts.

Why Start a Trust?

A living trust has many advantages. One of the biggest is that it helps avoid confusion and stress at the time of your death. If you have a trust, your financial wishes will be spelled out, and your assets will not pass through probate. Family members will be less likely to argue over where your possessions and funds go. This also maintains a level of privacy for your family and your good name.

Talk to an attorney today if you are ready to start your living trust. This document can give you and your family members peace of mind.