A living trust is often set up to manage and protect assets. Like a will, a trust includes instructions for whom you want to handle final affairs and who should receive the assets upon your death. As long as you are alive and competent, you can change the trust document, add or remove assets or cancel it.
Living trusts have the benefit of avoiding probate upon the owner’s death, so many use for that purpose. To properly set up a living trust, you must transfer your assets into it. Since you officially transfer ownership over to the trust, it becomes easier to transfer those assets when the time is necessary.
The grantor, also known as the trustor, can make changes to his or her trust.
The trustee manages the assets that are in the trust. Oftentimes, the trustee is the grantor, if that person can manage the affairs. Some times, married couples are co-trustees so that when one dies or becomes incapacitate, the surviving spouse can continue to handle the finances without other assistance.
This person is named to manage the trust when the trustee is no longer able to continue. Often multiple people are named in succession in case the one named cannot act. In some cases, adult children are named together.
The beneficiaries are the individual, people or organization who will receive the assets after the grantor dies.
If you are considering setting up a living trust, you will want to work with an experienced and knowledgeable attorney who can make sure you have everything set as you would like them. Contact our office today for your free, initial consultation.