Setting up a living trust is one way of protecting your property and assets from going through the probate system upon your death. This can save your heirs a lot of time and money. Creating a living trust is actually fairly easy, although there are a few things that you need to keep in mind. The first is that the trust documents must follow the laws of the state in which they are written. Living trust laws do vary from state to state, so you will need to speak to a living trust attorney to make certain your document follows state law. Once written, you have to execute the living trust in order to make it legally binding. Below are the steps to setting up and executing a living trust.
The purpose of creating a living trust is often not only because they want to set up a trust for their beneficiaries, but because they want to benefit from the advantages a living trust offers. However, there are some disadvantages to creating a living trust as well, and it’s important to understand the various advantages and disadvantages to a living trust before creating one.
When creating a trust, most people create a revocable trust. A revocable trust, which is has several key differences from an irrevocable trust. Both allow for transfer of property to heirs without the need of a probate court, which saves time, money, and protects the privacy of all parties involved. However, in some situations, a revocable or an irrevocable trust may be more useful to all parties involved.
A power of attorney is a document that gives one person the legal authorization to make decisions on someone else’s behalf. This power extends to many different business and legal matters. By executing a power of attorney, the grantor (sometimes called a donor or principal) is authorizing his or her agent to assume these legal powers. Institutions such as banks, hospitals, and the IRS require that power of attorney be done in writing.
Because most people do not know all the ins and outs of revocable trusts, there are a number of different myths surrounding them. Some of these myths are simply misinformation, while others are wildly untrue. If you’re thinking of creating a revocable trust, it is important to speak with an attorney who specializes in revocable trusts first, so that you understand exactly what the trust will do.
Once you’ve created your last will and testament, you may believe you are finished with this depressing chore. However, over the years, you may find that you need to update or completely redo your will. There are a variety of things that can make this necessary, including marriage or divorce, having children, changing your beneficiaries, and/or selling or buying property. Here are some basic steps to keep in mind when changing your will.