A will is a written document which is signed and witnessed and it indicates how the property will be distributed at the time of your death. It is revocable and subject to amendment at any time during the lifetime. It also allows you to appoint a guardian for your minor children. A living trust will provides some benefits for lifetime and after-death property management. Court intervention is not required.
Livings trusts are been used to manage property. If a person is disabled by an accident or illness, the trustee can manage the trust property. As a result, the expense, publicity, and inconvenience of court are been supervised and distributed equally by him.
Advantages and need of living Trust:
Living trusts will allow the grantor to avoid the probate for the assets which has been listed in the trust.. If the living trust is revocable, then it can be changed at any time by the grantor. The last legal draft will be delivered and been executed at the time of the grantor's death.
There are some advantages they are been stated as follows;
1. Avoidance of probate
2. Revocable
3. Privacy preservation
4. Segregation of assets
5. Continuous management
1. Avoidance of probate:
Probate is the legal process for transferring your property when you die. Establishing is useful to avoid expensive multiple probate proceedings when you own real estate or other property in several states. The Assets which is named in trust can avoid the court fee and it will take precedence over the property which is designated in your will.
2. Revocable:
The living trust will allow us to make changes in the trust document.
3. Privacy preservation:
The probate process may expose estate to the public. Generally in probate process the privacy preservation is needed.
4. Segregation of assets:
This will be useful for married couples to separate the property which has been acquired to the marriage.
5. Continuous management:
It allows the wealth which has been accumulated to continue to grow for multiple generations.
Disadvantages of living trust:
There are some disadvantages, they are been stated as follows;
1. Maintaining trust books and records
2. Expense of planning
3. Minimal asset protection
4. Administrative expenses
5. Unpredictable problems
1. Expense of planning:
While the standard will document might cost heavily…. Costs can run as high as more, depending on the complexity of the situation.
2. Minimal Asset protection:
It is a contrary to the public. The living trusts may offer a very little asset protection to retain an ownership interest.
3. Administrative expenses:
The additional professional fees like investment advisory and trustee fees are been included as administrative expenses.
4. Unpredictable problems:
If you fail adequately to educate your spouse on the terms and purpose of the trust then the problems will be raised.
Terms and Conditions of Living trust:
The terms of the trust are been set out in the trust document.. This is usually takes in the form of a deed, called a "Declaration of Trust", and it is governed by the local law. The trustee has the legal obligation to administer the trust which is according to the terms of the trust.