When it comes to avoiding the probate process, one of the most helpful tools at your disposal is the living trust. These legal entities allow you to transfer formal ownership of your assets while continuing to benefit from them. If you have questions about living trusts in Kendall, we are ready to help. Our committed probate attorneys understand the process from beginning to end and are prepared to advise you on how best to develop an estate plan.
Understanding Living Trusts
A living trust is a legal arrangement created during a person’s lifetime to manage and distribute their assets. Unlike a will, which only takes effect after death, a living trust becomes active as soon as it is established. The person who creates it, called the grantor, transfers property and assets into the trust. They also frequently serve as the trustee, maintaining control while alive.
Creating a valid living trust requires the grantor to be at least 18 years old and mentally competent at the time of creation. The trust must be in writing and clearly identify the grantor, trustee, and beneficiaries, and include specific terms outlining how assets will be managed and distributed. To fund the living trust in Kendall, the grantor must transfer ownership of assets into it. It is not enough to draft a trust document if there are no assets to fund it.
Living Trust Limitations
The living trust has a lot of uses, but there are some limitations to be aware of, and despite its usefulness as an estate planning tool, it is not ideal for every situation. First and foremost, the fact that these trusts are revocable takes away some of the benefits of irrevocable trusts. One of the most prominent examples involves asset protection.
When you place your property in an irrevocable trust, your creditors generally are unable to reach it. This means they cannot collect assets held in trust to settle any debts you might owe them. These same protections do not extend to living trusts.
There are also limited tax benefits with living trusts. While you can avoid potential estate tax liability with irrevocable trusts, the same is not true for living trusts. Despite these drawbacks, this option can be powerful in a wide variety of situations.
Why Should I Avoid Probate Court?
Living trusts are a good way for Kendall residents to avoid probate court, but the benefits of doing so might not be immediately obvious. The reality of the probate process is that it can be costly and time-consuming. Your heirs can expect to face mounting legal fees as the case works its way through the system, which can take months or even years. By avoiding probate, your heirs can receive their inheritance immediately without the costs that come with the court system.
There are other benefits that come with this type of trust. They can be amended or revoked during the course of the creator’s life, which gives you tremendous flexibility. You can also use these trusts during your lifetime as opposed to relying on them for probate purposes.
Call an Attorney in Kendall About Setting Up a Living Trust Today
If you are going through the estate planning process or merely thinking about the future, it may be time to consider a living trust. This tool can shield your heirs from the probate process, which is helpful regardless of the size of your estate.
At The Florida Probate & Family Law Firm, we can help you weigh your options and plan for the future. Call right away to discuss living trusts in Kendall during a free case evaluation.