You have likely heard of a trust fund and may think that it is something only rich people use. You may not be familiar with a living trust, however. A living trust is similar to a will but is a guide to how your assets are divided while you are still living. It allows you to take any valuable assets that you own and place them into a trust with specific requests of how things will be divided upon your death. There are a few types of trusts, but the basic purpose is investing your assets into a trust fund that is divided when you are gone.
What You Can Put in a Living Trust
Any type of asset that has value can be placed into a living trust. This can include a house, car, land, rental properties and much more. A living trust can be changed over time as you acquire new assets or possession of assets changes. The assets are no longer yours but are rather the property of the trust. A trustee is appointed to carry out the directions of the trust; this may be a family member or someone else appointed as the official trustee.
Who Will Get Your Living Trust?
In your living trust, you must name beneficiaries of your trust. This can be set up to invest in your children and grandchildren’s futures. You can place contingencies on your trust as well, such as the amount of money that is received by a beneficiary at one time. Changes can usually be made to a living trust depending on what type of trust it is.
How to Make a Living Trust
An estate planning lawyer, like an Estate Planning Lawyer in Melbourne, FL, is one who specializes in things like living trusts and will be your best source of knowledge on the topic. If you are interested in setting up a trust, it is advised that you see an attorney with experience in this area to learn how a living trust works and what type would be most beneficial in your situation.
Taking care of your family after you are gone does not have to be something that you only have in a last will and testament. With a living trust, you are able to manage the division of your assets while you are still living and make necessary changes along the way. It can be a way to look out for future generations and feel peace of mind that they will be financially supported.
Thank you to the experts at Arcadier, Biggie & Wood, PLLC for their input into estate planning law.
