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What are the benefits of a trust vs will?

What are the benefits of a trust vs will?

A trust will streamline your estate’s transfer, unlike a will, which goes through probate. Making an estate plan a priority now can save money and precious time later, and help your loved ones avoid potential financial hardship.

When do you need a will and a trust?

While you are alive you can be in full charge of your trust. And when you become incapacitated or die, the person you appoint as the successor trustee can easily step in and handle your affairs exactly as you have laid out in the document. It is my strong opinion that you should have both a will and a living revocable trust.

What happens when you create a living trust?

A living trust is a written legal document that explicitly states who should receive your assets and have guardianship of your children when you die. When you create a living trust, all of your assets are transferred to your trust and are used as you wish during your lifetime.

What happens when the grantor of a trust dies?

When the grantor dies, the trust is no longer revocable and it can no longer be changed. When you die, your named assets become property of the trust, and the trustee must manage them as indicated. If you were the trustee as well as the grantor, then the successor trustee or co-trustee takes over the trust.

When does a living revocable trust become effective?

A living revocable trust becomes effective immediately. While you are alive you can be in full charge of your trust. And when you become incapacitated or die, the person you appoint as the successor trustee can easily step in and handle your affairs exactly as you have laid out in the document.

When the grantor dies, the trust is no longer revocable and it can no longer be changed. When you die, your named assets become property of the trust, and the trustee must manage them as indicated. If you were the trustee as well as the grantor, then the successor trustee or co-trustee takes over the trust.

A living trust is a written legal document that explicitly states who should receive your assets and have guardianship of your children when you die. When you create a living trust, all of your assets are transferred to your trust and are used as you wish during your lifetime.

Who is the grantor of a revocable living trust?

The trust instrument is the document that creates the trust, defines the rights and responsibilities of the parties, and sets the terms of the trust. When someone makes a revocable living trust, they can occupy all three roles: grantor, trustee, and beneficiary.

Can a trustor revoke a living trust?

That means that even though the trustor transfers assets to a living trust, the trustor can get his or her property back by revoking the trust. In most living trusts created in the United States, the trustor, trustee and beneficiary are all the same person. Why do people create living trusts?