Currently, a lot of people are choosing revocable living trusts rather than relying on a joint ownership or will when it comes to real estate planning. Time savings and cost are very much sought with the extra control over assets that living trusts can provide. For instance, a living trust that is properly prepared avoids the costly, public, and time-consuming court procedures at death (probate), and incapacity (guardianship or conservatorship). Living trust plays an important role in providing for your spouse while not forgetting to set a portion for your children, which can be beneficial for second marriages. Your children and grandchildren’s inheritances are protected against 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. The process involves physically changing the titles of assets from the owner’s 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 remember that you won’t avoid the probate if you already signed the document of your living trust without changing the beneficiary designations and the titles. Also bear in mind that those assets you put in your living trust are the ones that you can only control. While you are still able to do so, it is very important to fund or transfer your assets to your living trust to court intervention at incapacity as well as to avoid probate at death. If you forget something that must be included in your living trust, your lawyer can prepare a “pour over will”, acting like your safety net, so it catches any forgotten asset and allow it to be sent to your trust.
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. Your lawyer is there to help you by transferring your real estate, and providing you with the sample letters and instructions for you to be able to transfer your other assets. Once you know how living trust funding works, you can transfer your many assets into your trust confidently and privately as well as save on legal fees. For more information about how to manage your living trust, you can consult AmeriEstate, you number one partner when it comes to will, trust and inheritance.Figuring Out Systems