Is a Living Trust Right for You?
Clients who want to avoid the probate process and those who want to minimize tax liability may benefit from creating a living trust to transfer property during their lifetimes while still maintaining the use and benefit of the property.
What is a living trust
A living trust, or inter vivos trust, is a trust created by you and funded during your lifetime. A living trust lets you transfer property out of your estate while you're living, thus avoiding probate, but lets you keep the property until you die if you so choose.
For example, if you know you want to leave your home to your trusted adult child after your death, you may create a living trust, name yourself as the immediate beneficiary, name your child as the remainder beneficiary and transfer ownership of your home to the trust. You may continue to live in your home and can even name yourself as the trustee to manage the property. When you die, the property immediately passes to the remainder beneficiary (your child) and the property does not need to be probated as part of your estate.
Always have a back up trustee
If you become incapacitated before your death, your living trust is generally still effective. If you named yourself as trustee, however, your incapacity would prevent you from acting as trustee. Be sure you consider this possibility and name a back-up trustee to manage the property if you are unable to do so yourself.
To learn more about the benefits of a living trust and whether a living trust fits your needs, contact an experienced Bryan, Texas estate planning attorney at the Peterson Law Group. Call 979-703-7014 today to schedule a meeting or visit us online for more information about our comprehensive estate planning services.