Rather than depending on a joint ownership or a will, many people select a revocable living trust in their estate plan. They like the time savings and cost with the additional control over assets that living trusts can provide. For example, a living trust that is properly prepared get away with the costly, public, and time-consuming court procedures when incapacitated (guardianship or conservatorship), and death (probate). Without disinheriting your children, a living trust allows you to provide something for your spouse especially in second marriages. Your children and grandchildren’s inheritances are protected against more creditors, courts, divorce proceedings, spouses, and irresponsible spending.
One major mistake that many people do is sending their assets under the court system that don’t really fund their trusts. When it comes to funding trust, it generally refers to the transfer of assets from the person who owns the property to his trust. Living trust literally changes the titles of your assets from your name or joint names to the name of the trust, that 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. Also remember that the only assets 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. For more facts and information about estate planning, you can go to https://en.wikipedia.org/wiki/Estate_planning.
The bottom line is, it is your sole responsibility to ensure that all of the assets you want to be included in your living trust. A lawyer is there to help you in transferring your real estate, providing 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 definitely help you in managing your living trust, you number one partner when it comes to will, trust, and inheritance. Check this website to know more!