WhenIPass.com

Living Trust

What do you mean by "Living Trust"?

A living trust is a document, which is made legally by an individual containing instructions and wishes as when he dies what will be done to his assets. Generally, a living trust prevents the interference of court and probate at death.

At what age one should create a living trust?

Age should not be a bar or factor in create a living trust. Death is an inevitable phenomenon and incapacitation can occur at any moment, therefore one can create a living trust much before in advance to avoid any complications in future.

Should one hire an attorney to create one’s living trust?

It is needful that one must hire an attorney having good ideas and knowledge in estate planning and living trust. It is significant that one’s living trust to be created affectively and properly so there will be no problems in future.

How can one transfer his assets to the trust?

It is not difficult for an individual to transfer his assets to the trust but it generally takes time. One can create the living trust by his own now or through the attorney and the surrogates’ court, so the assets are transfer at a later date. The living trust will help in avoiding probate during the transfer of assets to the trust. If the individual haven’t mentioned any other assets in living trust and he still has in his name then it will be subjected to probate.

Who controls or maintains the assets in the trust?

As a Trustee, one has full control to look after the assets, which are contributed to the trust. One has full liberty and power to do anything to the assets before the transfer; it includes selling and buying assets. As the trust is revocable one can change the terms and condition of the trust. It is easy to change the terms and condition of the trust, but generally it is not recommended to cancel the trust entirely, it has some purposes to be attained through the trust.

What if an individual dies or becomes incapacitated then generally what happens to the trust?

Generally, an individual appoints both himself and his spouse are co-trustees, which has to be mentioned the document. Both are concurrently have full control and power over the assets. Unfortunately, if anything happens either of them, the other will have the right to control over the assets.

In case before anything happens to both of them a successor trutee can be selected by both of them or either of them to take the control over the trust. By chance if the trust dint exist then the individuals family would take the help of an attorney take legal aids to appoint a guardian.

What is a successor trustee?

If an individual is the sole trustee of the trust or if there are co-trustees to control the trust and both of them die or become incapacitated, the living trust have provision for having a successor trustee, mostly a younger person is made as trustee.

Usually, when the individual dies or becomes incapacitated then the co- trustee takes the charge of controlling the trust. if the co- trustee dies then the successor trustee assumes the control of the trust.

The successor trustee’s term is wholly depends on the condition and situation as mentioned by the first trustee in the documents.

If the individual is temporarily having ill then the successor trustee will only have the duty to manage the trust assets until the individual is alright and able to do all the task.

Therefore while creating a living trust an individual must carefully do all the terms and conditions carefully.