Legal Tips

Here is part two of my four-part series of articles dedicated to providing you, the community, with information regarding basic estate planning documents, forms, and what to do with the information. In this article I talk about Living Trusts and the ways they can benefit you.

WHAT IS A LIVING TRUST?

A Living Trust is a legal document by which you can transfer your assets to yourself or another person as "trustee," to manage your assets for your benefit, or for the benefit of any person you direct. In most cases, you will create the Living Trust and name yourself as trustee to manage your own assets until such time as you become incapacitated, or until your death. This document is set up to be revocable at any time. Some reasons for establishing this type of legal document are the following:

1. By establishing and properly funding the Living Trust, your assets, including stocks, bonds, bank accounts and real estate, will avoid probate at your death. Probate is a legal process through the courts by which those assets which are in your name alone at the time of your death are distributed according to the terms of your Will, or if you have no Will, are distributed according to statutory law. Probate can be a costly procedure, especially in those situations where you have real estate in more than one state which will require several different probate proceedings.

2. By establishing and properly funding the Living Trust, you can avoid the need for a guardianship proceeding, should you become incapacitated. A guardianship proceeding is a legal process by which someone petitions the court to become your legal guardian or conservator, to manage your affairs. This procedure is a costly legal process, involving yearly accountings to the court, with hearings required to be held every few years, or at such times as extraordinary actions such as the sale of real estate are to be taken.

3. By establishing a Living Trust, you can name someone else to be your trustee, or your co-trustee, should you need assistance in managing your assets, even if you are not incapacitated.

4. Since the Living Trust avoids probate, distribution of your estate at your death will not become a matter of public record. Your estate will be distributed privately by your trustee at your death. Also, challenges to your estate are minimized since the Living Trust document is not required to be brought before the court.

If you are interested in learning more about Living Trusts, please feel free to contact me. You should not attempt to create a Living Trust on your own, like through a pre-purchased online kit. These items typically do not conform to your state’s requirements and are almost never geared toward your individual needs. You should always consult with proper professionals when considering any kind of trust.

Jennifer A. Williams, is the owner of The Law Office of Jennifer A. Williams, PLLC. Be sure to check out Jennifer’s website at http://www.jawlawoffice.com for more information about her and the services she provides. She can be reached at (406) 775-6655 or [email protected] should you have any questions regarding this article.

* DISCLAIMER: This article is for general informational purposes only. In no way shall this article constitute legal advice or substitution for legal counsel – and should not be relied upon as such. The information contained in this article is not promised to reflect the most current legal developments; accordingly, information found here is not promised or guaranteed to be correct or complete. As legal advice must be tailored to the specific circumstances of each case, nothing provided in this article should be used as a substitute for advice of competent counsel.