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What is a Living Trust and Why Are They Important?

On Behalf of | Jan 9, 2015 | Trusts |

When the unthinkable and impossible occur, it is best to be prepared. Although, thinking about unfortunate events, possible terminal illness, and even the end of life is a difficult topic to swallow, it is indeed a necessary discussion in order to protect your individual desires as well as your loved ones. A living trust is a document that one needs to sufficiently set up when preparing for life’s uncertainties. By creating a living trust, you can ensure that you protect your estate for your loved ones and avoid having your family “guess” your desires or having to make critical decisions under stress, duress or in emotional turmoil.

There are many types of trusts that one may create but normally people create “A Living Trust” in preparation for end of life. I personally advise one to establish a living trust rather than a will because living trusts allows your surviving family members to avoid probate of your assets and the taxes that result therefrom. A living trust is simply a formal is a written agreement designating someone to be responsible for managing your property. It is referred to as a living trust because it’s established while you’re alive. It remains revocable and amendable while you are alive, as long as you’re mentally competent, you can change or dissolve the trust at any time at your own discretion for any reason. A trust allows you to appoint trustees whom oversee the trust as well as the beneficiaries whom inherit the assets. Often people chose to name oneself and one’s spouse as trustees, in order to maintain full control of the assets and trust property while alive. There are many steps to create and establish a living trust but it is a great tool to utilize in preparation for the end of life.

The living trust is legal document that is important and necessary for proper estate planning and planning for end of life. The reality is one must answer this very important question… who do you want making the decisions about how your assets should distributed after you are gone, you or some stranger? Call Ace Law Group today, we care and we can help!

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