What Is a Living Trust?
Among the numerous trusts available in Texas the living trust is one of the more popular. While a living trust is not all that difficult to set up, it is in your best interests to work with a Conroe trusts lawyer to determine whether it is best suited to your needs.
The Living Trust
A living trust is a legal instrument into which you place assets such as real property, cash, etc. When you do so, the trust itself becomes the holder of title and ownership. In essence, then, you transfer ownership to the trust. This does not mean, however, that you lose control of the assets. You are still allowed to transfer assets.
As a Conroe trusts lawyer will explain, you will need to appoint a trustee who will hold the assets in trust until after your death. This individual will then distribute the assets to beneficiaries in accordance with your desires. You may name yourself the trustee. However, you will need to name someone else who will assume the role upon your death.
Benefits of a Living Trust
Creating a living trust does not eliminate the need for a will. You will always need a will in place in case you acquire assets that are not held in any trust. However, the living trust provides some distinct advantages, including:
- Assets do not need to pass through probate, which could cause a considerable wait time for heirs before distribution.
- Courts lose control of your assets if you become incapacitated.
- Enables you to have control over assets that you wish to leave to minor children.
How to Create the Living Trust
In order to create the living trust you simply need to write the document, articulating whom you appoint as trustee and how assets will be distributed. You will then need to sign the document before a notary public, and then transfer assets into the trust.
As mentioned previously, you can name yourself trustee, and most people do so. Thus, while you are alive or until such time you become incapacitated you will be both settlor and trustee. The successor trustee assumes authority over distributing the assets in the trust after your death, or when you become incapacitated.
If You Would Like More Information on Living Trusts
If you have questions or wish to learn more about trusts, call a Conroe trusts lawyer that has a track record of providing clients with the highest quality of legal assistance. Call Peterson Law Firm today at 979-703-7014 or 936-337-4681.