Why Living Trust Forms Can Benefit You
Have you been wondering "what is a living trust used for?" You don't need a large estate to be benefited by creating living trusts. There are various important reasons to make a living trust. We will take a look at some of the reasons below.
Benefits of a Living Trust
1. You want to protect your privacy. - One of the main differences between a living trust vs will is that a last will becomes a public document in the probate process, whereas a living trust is not a matter of public record, and generally not required to be filed in court. If you have assets that you don't want to have identified under your name, putting the assets in a trust fund, as owned under the trust fund name, gives you an extra layer of privacy.
2. Avoiding probate. - The probate process can be rather involved in some states and having the assets in trust can let you avoid the probate process. Especially if you own property in more than one state, living trusts can avoid having multiple probate procedures to deal with. When you have assets distributed through a last will vs living trust, your estate could be required to go through probate in each state where property is owned.
3. Maintaining control of assets after death. - Another reason why living trusts can be beneficial is that the assets can be managed after your death, rather than being distributed outright when you die. This allows you to retain control over the use of the assets after you die. Your appointed trustee can manage trust assets for you, according to your instructions in the trust document.
4. Asset protection. - An irrevocable trust can protect the assets it contains from being attached by creditors of its creator, also called the grantor or settlor. When the creator of an irrevocable living trust fund doesn't retain rights to control the trust fund, it can protect the assets from the reach of creditors. This is true even when the grantor receives distributions from the irrevocable trust. However, a revocable living trust often is considered property of the grantor and able to be reached by creditors.
A living trust can be an important part of your estate planning, regardless of the size of your estate. US Legal Forms offers a state-specific, professionally drafted form for living trusts at an affordable trust, that can be easily completed from the privacy of your own computer.