Currently, a lot of people are choosing revocable living trusts rather than relying on a joint ownership or will when it comes to real estate planning. They like the time savings and cost with the additional control over assets that living trusts can provide. For instance, a living trust that is properly prepared avoids the costly, public, and time-consuming court procedures when incapacitated (guardianship or conservatorship), and death (probate). Living trust plays an important role in providing for your spouse while not forgetting to set a portion for your children, which can be beneficial for second marriages. Through a living trust, your children and grandchildren’s inheritances are protected against divorce proceedings, spouses, creditors, courts, and irresponsible spending while saving on real estate taxes.
One major mistake that many people do is sending their assets under the court system that don’t really fund their trusts. Funding trust refers to the process of transferring assets from the person who owns the property to his trust. The nature of a living trust changes literally changes the titles of the owner’s real estate or any other assets from his name or joint names to the name of the trust, and also changes beneficiary designations to the trust. You’ll need to indicate the name of your trustee in your living trust, and most likely, you’ll name yourself as the trustee so can completely control over your assets. The important benefits of having a revocable living trust include being able to remove assets anytime and continue buying and selling assets. Always keep in mind that you won’t avoid the probate if you already signed the document of your living trust without changing the titles and beneficiary designations. The assets that you put in your living trust are the ones that you can only control. It is very important to fund or transfer your assets to your trust to avoid probate at death as well as court intervention when incapacitated while you are able to do so. If you forget to add funds to your living trust, your attorney can prepare a “pour over will” which is like your safety net, so it catches any forgotten asset and allow it to be sent to your trust.
The bottom line is, you are the one who is solely responsible for ensuring that all of the assets you want to be included in your living trust. Your lawyer can help you transfer your real estate, provide you with the sample letters and instructions for your other assets. Once you know how the process works, then you can do it yourself and save on legal fees. AmeriEstate can help you in the process of learning how to manage your living trust, feel free to check their website or homepage.A Beginners Guide To Software