15 Feb 2018

What are Living Trusts

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James Morgan Law helps elderly individuals protect their assets. One way to protect older people from large expenses in the future is to set up a living trust that can be used to prepare for nursing home or moving costs.

Living trusts are typically revocable trusts, allowing the trustee to revoke the trust at any time and keep all their assets in the trust. You can use a living trust to set aside money to pay for nursing home expenses, for example.

Living trusts can be very valuable and a way to prepare for the future. The process works to protect assets for use when you need them.

First, you transfer your assets into the living trust, which is a written legal document prepared by your lawyer. You have full access to these assets, and they are meant to be used for your benefit during your lifetime. These assets are then transferred to a designated representative, called the “successor trustee.”

A living trust differs from a will in several ways. Your executor, named in the will, oversees the process of distributing your assets after your death. Nothing in a will takes effect until after death. Living trusts are available for use in financially straining situations during your lifetime.

Normally, during the administration of a will, it goes into probate, which is the court proceedings that distribute the will’s assets according to your wishes through the executor. Living trusts don’t go through probate, meaning the distribution of assets goes much faster. During probate, since the will is being administered in court, the content of the will is public record. Since a living trust has no probate process, you have more privacy.

If you have property in other states, a living trust is your best option, since you don’t have to go through probate in that state at the administration of your trust. You can also appoint anyone as trustee, so they can administer the trust without power of attorney or a court-appointed trustee that many wills have.

Drawing up a living trust is a great way to protect your assets by putting them in the hands of someone you trust, or yourself, if you want. You can set aside assets for nursing home care as you age, and still be protected in the event of a serious injury or fatality.

Living trusts can be designed to serve any purpose the trust holder decides. It must meet certain legal requirements that vary from state to state. How you fund your trust is up to you. You can use your home, bank accounts, investments, and more.

James Morgan Law can draw up a living trust that helps you with any issues now or in the future and set you up so that you save the most money and get the most out of your living trust. No matter what your needs are, the associates at James Morgan can help you hash out a living trust that will benefit you the most.

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