By a recent statistic, nearly 60% of Americans do not currently have wills or living trusts. Facing the inevitability of one's mortality can be an uncomfortable topic for man. Still, it is important to know your assets are secure.
When it comes to estate planning in Northern Kentucky, setting up a will or living trust can bring peace of mind knowing your property is protected and your beneficiaries are secured.
So what is the purpose of a living trust and how do you set one up?
What Is a Living Trust?
A living trust holds the ownership of one's assets within the trust itself as a sort of security fund. The trust is overseen by a trustee who is appointed by the granter (the assets' original owner) who transfers ownership of personal property to the trust itself. Then, a trustee, who is appointed by the granter, oversees and manages the trust assets.
The trustee then controls the assets within the living trust and manages proper distribution to the beneficiaries of the trust.
Say for instance you own real estate in or around Northern Kentucky that you wish to transfer to a living trust. You would change the name on the deed from yours to that of the trust and give control of the property to the appointed trustee who would oversee management and control of the property.
Most of the time, you serve as the trustee of your own trust. Therefore, you could keep control of your real estate and, at the same time, make it easier to transfer if you’re incapacitated or upon your death.
What Can You Put in a Living Trust?
A living trust can hold pretty much anything of value.
Some example of items commonly found in a living trust are:
- Real estate and properties
- Bank accounts
- Vehicles such as automobiles, watercraft, or aircraft
- Jewelry, precious artifacts, or art pieces
- Other intangible items such as intellectual or property rights
Types of Living Trusts
- Revocable Trust: Can offer greater flexibility and control to the grantor
- Irrevocable Trust: Can offer less control but reduced taxes to the grantor
What Is the Benefit of a Living Trust?
A living trust saves time, expenses, and offers greater security to the assets within the trust, particularly during the probate process.
Having a trustee who oversees and manages the properties within the living trust can protect the assets and privacy of the grantor.
Having a living trust can ensure proper distribution of assets post mortem, and protect against challenges and disputes that a simple will is subject to.
A living trust is not a public document the way a simple will is, so beneficiaries may not know what the terms of the trust are until acknowledged by the trustee.
What to Be Aware Of When Setting up a Living Trust
Because the living trust is set up while you are still alive, it is important to understand that ownership of your properties is transferred to the trust. This means if you want to sell something within the trust, you have to take extra steps before you can regain ownership and make the sale.
Additionally, setting up a living trust can incur attorney fees to oversee the proper due process of the trust.
How Can I Set Up a Living Trust?
Setting up a living trust will ensure the proper, secure, and private distribution of your properties and assets after your death.
Hiring a qualified attorney can assist in the due process of setting up a living trust for you, the grantor, and inform you of all the laws regarding such in Northern Kentucky.
Call Eric S. Beutel at (859) 251-3020 for advice and assistance for your estate planning needs and advice on opening living trusts today!