What is a Living Trust?
The individual who establishes the trust and whose assets are transferred to the trust is known as the “trustor.” The “trustee” is the individual who manages the trust assets. Generally, the trustor will be the initial trustee and will appoint a successor trustee to take over upon the trustor’s death. This allows the trustor to remain in control of the Living Trust during his/her lifetime and maintain all rights previously held as owner of the assets. The trust assets are held for benefit of the trustor during his/her lifetime and then transferred to beneficiaries upon the death of the trustor.
Benefits of a Living Trust:
Management of assets
Management of assets for minors
Will having a Living Trust avoid Probate?
What happens at death if I have a Living Trust?
Trust administration still requires some work, however. Your trustee is required to notify your heirs and beneficiaries about the trust and fulfill other duties, such as paying your debts, expenses and taxes, preparing an accounting of trust assets, collecting trust assets and distributing assets in accordance with your wishes, and managing assets for minor beneficiaries.
Even with a trust, a part of your estate may have to be probated if you did not title all of your assets in the name of your trust. Also, if a trustee does not administer a trust properly, court intervention may be required