A Living Trust is basically a revocable living trust, which is established through a legal process that grants the survivor or beneficiaries of a deceased person’s estate the right to retain assets in their name and collect payments from any third parties. However, you need not have a Living Trust in place before transferring assets into it. Any living trust can be established, funded and owned by any beneficiary without having a formal Living Trust in place. In fact, most individuals set up a Living Trust as part of their estate plan, as part of their planning with their attorneys, but some individuals decide to keep it just for emergency purposes and at the end of their life.Do you want to learn more? Visit Atlanta Living Trusts Attorney.
There are certain advantages to using a Living Trust instead of a will. For example, if there are many beneficiaries such as many children or people with high levels of income, then using a Trust could be the most appropriate way to accomplish your asset protection goals. The beneficiaries will also have more discretionary income and greater protection than if you leave your estate to your children or a relative without a Trust. When you establish a Trust, there is no need to pay taxes on the distribution of the assets because they are not transferred during your lifetime; there is no need to report the Trust to the IRS, and your beneficiaries will not need to file any tax returns.
Therefore, while there may be times when a Living Trust is appropriate, it is not something that you need to do unless you plan to transfer assets into a Trust after you die. If you are not planning to distribute your assets after death, then you should make a will so that your beneficiaries will have the information they need in order to pay tax on the gifts that you left to them. Also, living trusts are very easy to establish, and can be funded with your 401(k) rollover or other retirement accounts, and can be initiated by anyone other than the people named in your Will.
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