While every lawyer tells you that you need a will, they can lead to some legal issues. You could end up facing litigation and delays in the probate process. There is another way to transfer your property while you are still alive that can keep your estate out of probate, called living trusts.
It is called a living trust because it is created while you are still living. It takes effect during your lifetime. Once you pass away, the property is automatically divided in accordance with the terms of the trust. In many ways, it is cheaper and easier than a will, and it can save your family members some stress after you are gone because the probate process can be difficult.
There are two types of living trusts:
- Revocable living trusts – these are trusts that you can change their terms whenever you want. You can change beneficiaries and add or remove assets.
- Irrevocable living trusts – these are used more when you want to move assets out of your name (such as for Medicaid purposes). These terms cannot be changed once the trust is established. The assets must be completely out of your name, and you must surrender all control of them.
When you have a trust, it automatically means that you have a trustee. If your trust is revocable, you can be your own trustee. If it is irrevocable, you must name another trustee who has complete control. In a living trust, you can direct the management of trust assets, while you cannot for an irrevocable trust.
Contact a St. Augustine Estate Planning Attorney
The attorneys at Naples & Spence work with your family to meet all of your estate planning needs. Call us today at 904.657.7117 or contact us online to set up a time to talk about your situation.
