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). 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.
However, there are still many people who commit the mistake of sending their assets under the court system that don’t really fund their trusts. Funding trust refers to the process of transferring assets from the person who owns the property to his trust. The nature of a living trust changes literally changes the titles of the owner’s real estate or any other assets from his name or joint names to the name of the trust, and also changes beneficiary designations to the trust. The trustee you indicate controls the assets in your living trust, and most likely, you will name yourself as the trustee so you have a complete control over your assets. The best benefits of a revocable living trust is 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. Just in any case that you forget an asset to be included in your living trust, your attorney 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 living 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 can help you transfer your real estate, provide you with the sample letters and instructions for 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. AmeriEstate can definitely help you in managing your living trust, you number one partner when it comes to will, trust, and inheritance.What Almost No One Knows About Resources