What is a Living Trust?
Planning for the future of your loved ones is a challenging task. You want to make sure that everyone is taken care of when you are gone. If you have complex financial assets, multiple families, several business interests or property located in other states, you may want to consider establishing a living trust.
A living trust is a legal document that you create with an estate planning attorney. Similar to a will, a living trust details want you want to do with your assets, heirs and dependents.
The biggest difference between a will and a living trust is that a will only goes into effect after you pass away and the will has gone into probate. The probate process for a will takes a lot of time and money. This is the major benefit of a living trust. A living trust eliminates the probate process by immediately transferring the power to your successor trustee to carry out everything you have laid out in the living trust.
If you pass away or are incapacitated due to health reasons, your successor trustee is enabled to manage your healthcare, finances and legal affairs.
There are two kinds of living trusts: a revocable living trust and an irrevocable living trust.
A revocable living trust lets you change the trust at any time you choose. Your assets will go straight to your beneficiaries when you pass away. Keep in mind, by choosing a revocable living trust, there is the added complication of estate taxes.
Choosing an irrevocable living trust means that you can pass along your assets while you are still living, relinquishing all control. After you do so, estate taxes no longer apply to these assets. This type of trust is more rare, and typically only used when you have more income than you or your spouse could foreseeably use.
If you are considering creating a living trust, it is in your best interest to consult with an experienced estate planning attorney.
Estate Planning Attorneys Serving Thibodaux, LA
The estate planning attorneys at Waitz & Downer are here to assist you with your estate planning needs. We offer estate planning advice to individuals in and around Thibodaux, LA and surrounding areas. If you would like to learn more about estate planning, contact Waitz & Downer today for a free consultation.