Living Trusts

What is a Living Trust?

A living trust is a legal document that creates a legal entity into which you transfer your assets. It contains your instructions for what you want to be done with your assets:

The instructions in a living trust name the person who has the authority to carry them out. This person is called the trustee. Typically, you are the trustee while you are alive and healthy. The person you name in your trust to be "successor trustee" steps into your shoes if and when you become incapacitated or die. The authority passes from you to them with a death certificate or a doctor's certification-there is no need to go to court.

You can choose to have your trust end after your death, in which case your assets are fully distributed; or to continue, in which case your trustee manages your assets for the benefit of someone else. The most common example of a trust not ending at your death is when the trust instructs the trustee to manage your assets for the benefit of your children after your death until they reach the age you think is appropriate for them to receive your assets. Another common example is having the trustee manage your assets for the benefit of a disabled child or adult who is not able to manage assets.

What are a Revocable Living Trust and an Irrevocable Living Trust?

A living trust can be a revocable living trust, which means that the living trust can be amended or terminated at any time, or a living trust can be a irrevocable living trust, in which case it may not be amended or terminated. Depending on how the trust is structured, some revocable living trusts become irrevocable living trusts after the owner of the trust dies.

Benefits of Living Trust Estate Plans

• Avoid probate, including multiple probates if you own property in other states
• Prevent court involvement at incapacity
• Avoid problems of joint ownership
• Take care of assets for disabled persons after your death
• Prevent court control of children's inheritances
• Set ages when children will receive inheritance
• Reduce or eliminate estate taxes
• Faster distribution of assets
• Increased privacy
• Completely amendable and revocable
• Inexpensive, easy to set up and maintain

For more information about Living Trust, go to our FAQs about Living Trusts section or for legal advice regarding a living trust give us a call and schedule your free initial consultation with a Van Sickle & Rowley Estate Planning Attorney.