A Living Trust allows the Trustor (you, the creator) to control money or property after his or her death. By placing your money and property in a Living Trust, the Trustor can make sure their instructions are carried out through the Trust. A Living Trust comes in to effect during the Trustors lifetime for the benefit of the beneficiaries via the trust agreement. Therefore, any money or property in a Living Trust avoids probate. This is significant since probate has three major disadvantages.

1.         Publicity - Dispositions made by a Will are public information. Details of the deceased’s financial affairs are public record, as are the size of the estate, the names of beneficiaries, what they are to receive and on what terms they shall receive it. With a Living Trust, these matters are private. In general, there is less publicity if you avoid probate, this is a primary concern for the net worth of the estate.

2.         Delay - A probated estate must remain open for a period of time to allow creditors the opportunity to file claims against the estate. Therefore, if it is necessary for the beneficiaries to obtain cash quickly, special steps must be taken to prevent delay. With a Living Trust the assets can be administered without any such delay.

A common concern for some retirees is ensuring that their affairs will be taken care of in the manner which they expect after they pass on. Unfortunately, this may not be the case if you have not reviewed and possibly updated your Living Trust over the years. In an effort to ensure your wishes will be carried out, please remember to know the terms of your Trust distribution and make sure your wishes are current.  

It is not uncommon in today’s world for retired people who, when they pass away, are married to people who are not the parents of their own children. Not surprisingly, an increasing number of people strive to accomplish two potentially competing objectives when planning for their inheritance: first, to financially support their surviving spouse and second, to leave an inheritance for their own children but not necessarily to the children of their last spouse.

To learn more about what you need to do in the event you wish to update your distribution wishes, avoiding probate or the benefits of a Living Trust please contact United Estate Planning, Inc. @ 1-800-557-9177.

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HISTORY OF A LIVING TRUST

A Living Trust goes back to the English 16^th Century when land owners used a Living Trust to protect the King. Regularly concerned with the land owners owning too much land, the king made sure he could oversee the distribution of the land after the land owner died. The process of controlling land transfers was the first use of Probate.

Living Trusts within the churches of England helped the land owners avoid the probate process all together. Land owners would deed their land to the church in exchange for the promise that the church would grant the land back to the heirs of the land owner after his or her death.

In colonial times the first Settlor from England to America brought the English laws and customs with them from across the Atlantic Ocean . This included the process of probate and Trusts. A Trust was considered, for many years only for the rich. 

It wasn’t until the 1960’s that the Revocable Living Trust became popular in the United States of America . The increased interest and use of a Living Trust did not please many attorney’s as they stood to lose probate fees upon the death of their clients who held their assets within a Living Trust. Probate fees today can cost on average, 15% - 20% of your TOTAL estate.

In the United States , a Living Trust refers to a Trust that may be revocable by the Trust Creator or Settlor (also known by the I.R.S. as the Grantor). A living Trust is utilized to allow assets to be passed on to heirs while avoiding the probate process. Avoiding the probate process will save substantial cost, time and ultimately maintains your privacy. Any and all probate records are open to the public while distribution through a Living Trust is completely private.