Protecting wealth & preserving security

A living trust is a legal document creating a legal entity called a Living Trust. A living trust is called “living” because it is created and is used while the creator of the trust is still alive.  A different trust called a "testamentary trust” is created while alive, but comes into effect after death.

Who is named in the trust?

The Living Trust document names a grantor (the individual or couple) that establishes the trust;  a trustee, the person the grantor appoints to run and control the trust's assets (the grantor and trustee may be the same if certain circumstances apply) and the beneficiaries.  The beneficiary is the person or persons who benefit from the trust.

Almost anyone can benefit from having a living trust.

Avoid probate, maintain privacy and avoid taxes

One of the most important benefits of having a living trust is that it can help avoid probate.  Avoiding probate can save thousands of dollars and many hours of aggravation.  A trust is not required to be filed in the probate court like a will.  Because a trust does not become a public document like a will, the trust can preserve privacy. As a trust is recognized as a separate legal entity, distributions to beneficiaries can be made by a trustee without any involvement from the courts.

The living trust may also is be useful in planning for estate taxes. Through a living trust, a couple is able to maximize what is called a unified credit. It even accomplishes protection for individuals wanting to avoid conservatorship.

Simplify complicated family situations

Living trusts can be written even for complicated family situations. Re-married spouses, with children from a previous marriage, can use an advanced revocable trust to ensure kids receive their proper inheritance.  If you have children from a previous marriage and wish to leave them an inheritance, specific instructions to the trustee will ensure that they receive what you requested.

Once established, almost anything can be placed in a trust: savings accounts, stocks, bonds, real estate, life insurance, and personal property. In funding a the trust, you simply change the name or title on your assets to the name of the trust. Many people worry about losing control of assets; however, that is not the case with a living trust.

As the Trust is controlled by the trustee,  the trust can function even if the grantor becomes incapacitated..  For example, if a person is unable to care for themselves, the trust can still function and make distributions as needed. The trustee has a legal responsibility to see that your requests are fulfilled exactly.  The trustee can even provide care and protection for disabled relatives or handicapped children in accordance with your wishes.

Living trusts do not provide a great deal of protection against creditors, lawsuits or from divorce, and do not reduce all estate taxes.  There are other types of trusts and legal techniques that can be used to help protect assets from creditors, lawsuits, divorce and reduce taxes.

Please call 781-816-9001 to arrange to have your living trust expertly prepared.