Many estate planning tools can yield savings and other benefits based on the circumstances, such as living trusts. This trust type can take effect immediately, even while you are alive. Through this arrangement, you can put your assets and properties under a trust, which holds the estate until later after you pass on. Then, your beneficiaries can receive their part of the estate adhering to conditions you set before your death.
Most people use living trusts to avoid probate, which can be expensive and lengthy. Additionally, this option can provide more control of the estate, specifically if it includes various asset types. Depending on your estate details, you may need to take specific procedures to establish the living trust, including the following steps:
- Bank accounts and other financial sources: Create a new account under the trust’s name and transfer the money to it.
- Land or other property types: Obtain a new deed if necessary and give it to the trust.
- Cars and other vehicles: Transfer the automobile’s title to the trust.
Other types of assets may require similar or completely different procedures to place them in the living trust. It is best to consult an attorney specializing in estate planning to determine any requirements to adequately fund the trust and determine other features that may be useful.
Establishing a living trust with purpose
Some people intend to put their whole estate into the living trust to distribute it appropriately after death. Others might prefer to use it to manage their assets in case of incapacity due to severe health conditions. Either way, your purpose could affect what to include in the trust agreement, whether you want more or less control over its assets.