A trust is a legal document that performs actions much like a will. Trusts document the manner in which you want your personal matters to be dealt with after you pass away. The possession of a trust is kept by a person or other entity, known as a “trustee”. The trustee is the one who is in responsible for handling the property and affairs according to the wishes of the deceased.
A trustee will have to carry out the duties that are designated in the trust. Along with these, the trustee will be responsible for administering the statutory duties that are also required by law. There are multiple statutory duties that apply to trustees to ensure that they are carrying out the trust in the manner that the trustor wished for.
It is imperative to note that there are various types of trusts. With each type of specified trust they hold their own benefits, as well as their own requirements. A benefit of having a trust is that it avoids the probate process once you pass away. This is a nice perk because the probate process can take quite a long time of months or even year.
That is a long time for your loved ones to have to deal with your estate after you have passed. Having a trust makes the process, faster, smoother, and easier for the loved ones that are left with your estate once you pass.
What is a Living Trust?
A living trust, sometimes called a “revocable” trust, is a written legal document that places your assets into a trust for your own personal benefit during your lifetime. Find out more about what a living trust is and why you might need it.
It is then transferred to the designated beneficiary(s) upon your death. It is passed on to your beneficiary(s) by your chosen representative who your named “successor trustee.”
The best benefit about a living trust is that it avoids probate. If you have a valid will, it is subject to go through probate, which is the court proceedings through which your assets are distributed according to your wishes by the executor.
One great benefit that a living provides is that it is not subject to go through the probate process. This often allows for a faster and easier distribution of your assets to your heirs. What could take months or years with a will, takes just with a living trust. The person you have named as your successor trustee will pay your debts and distribute your assets according to how you have planned it.
A lving trust offers you privacy, as well. A big difference between a will and a living trust is thata living trust is not made public, upon your death. Due to this fact, your estate will be distributed privately. A will becomes a public record of how your estate was handled, a living trust is never subject to this.