How To Set Up A Living Trust
How do you protect the properties you have acquired and dispose of it later on in accordance with your desire? One good option is to set up a living trust.
This legal arrangement gives you the power to designate the person in whose name the title to the property shall be vested, under fiduciary capacity, with the state having no participation over it.
The designation of such person called the trustee is valuable especially when you become physically or legally incapacitated to manage the properties on your own. You can browse https://tompkins-law.com/living-trusts/ to get more info on legal trust.
Although a living trust is more expensive that the creation of a last will and testament, still there are some savings considering that it will not undergo probate proceedings, and will not be subject to estate taxes.
What is more is that such a legal act is imbued with confidential characters, unlike wills which become part of the public records when it is filed in court for probate. But how to set up a living trust?
Know the distinction between ordinary and living trusts. A trust is a set up wherein you vest to another, called the trustee, the power to administer your properties for the benefit of someone else, called the beneficiary.
A further distinction is that a living trust is not similar with an ordinary trust because the former is made while you (the maker) still lives, and at the same time, allows you a degree of control over the disposition of your properties.
Know if the living trust fits your situation. Assume that the total value of your properties is $200,000.00 or even greater, then you will have to be aware of liabilities such as taxes on the estate.
The problem of how to set up a living trust becomes more difficult to untangle if you have children from another marriage, and you want those children of yours to get portion of your properties too. In that case, you should contact a lawyer who is an expert in how to set up a living trust.