Define a Living Trust. Living Trust Defined. What is living trust and why is it attracting the interest of a growing number of people? Do the benefits really outweigh the expense of setting up such a trust?
First of all, it may be advisable to know the answers to these questions before you make the decision to set up your own living trust. After all, you wouldn’t want to get into something you do not fully understand.
Commonly, Living trust is known as a trust set up by an individual in order to plan for an unforeseen event such as incapacity, disability or death. It can be revoked by the person who set it up and is most often used as a means to avoid going through probate court in the event of death.
Mainly, the benefit of living trusts is that is saves the grantor and his heirs a considerable amount of money and time, since they would not have to go through the probate process. In a probate process in Valencia, California for instance, one would have to pay probate fess of 4-8% of his estate’s gross value. On the other hand, if your assets are held in a trust, your trustee — either an attorney or your bank’s representative are among the best choices to be a trustee — will simply pay your remaining bills then distribute your property according to the stipulations of your trust. The trustee does not have to report to the probate court to do this.
Normally, Probate takes six months or more whereas the distribution of properties held in a living trust only takes a few weeks. A living trust also protects your privacy, since the records are held privately as opposed to records that go through probate court, which are open to the public.
It is most advisable to consult a probate lawyer or an attorney who specializes in setting up these kinds of trust so that you can get the best advise on how to go about the process. It is best to safe, especially since your future is what’s at stake.
Mortensen Law
Trust & Probate Attorneys, P.C.
22807 Lyons Avenue
Newhall, CA 91321
www.mortensenlaw.com
Santa Clarita Trust Attorney
