What Does it Mean to Have a Living Trust?
Revocable living trusts are the most common types of trusts available. They provide people with the peace of mind of knowing that they have outlined their wishes for passing down their assets and property to beneficiaries.
Generally speaking, three people are involved in the creation of a living trust: a grantor, a trustee and a beneficiary. Grantors create their trusts with the assistance of legal counsel while they are alive. These trusts transfer complete ownership of specified assets to the management of trustees, who look after the property until beneficiaries can inherit it.
In the case of simple trusts, the grantors may also be the trustees, and so they will still be able to manage their beneficiaries’ property and update the terms of the trust while they are alive. Once a grantor dies, the provisions of the trust are no longer revocable. In this case, a successor trustee gains control of the property and then distributes it according to the terms of the trust.
Advantages of living trusts
There are numerous reasons why individuals choose to create trusts during the course of their lifetimes. A major reason is that, unlike a will, trusts do not go through the process of probate court. This means that property contained in trusts remains private. Additionally, in some cases property in trusts may be passed down more quickly and easily to beneficiaries.
If you would like to learn more about how living trusts may help protect your property and provide for your family, consult an experienced Tampa estate planning attorney with BaumannKangas Estate Law.