A living trust is a certain type of trust that is formed while its creator is still alive. In a living trust, the trust property (res) is transferred from the owner to a person who will hold the property (the “trustee”). The trustee will then transfer the property to its recipient according to the trust instructions. The recipient is known as the “beneficiary.”
Living trusts are generally less extensive than a will- they usually cover transfers of specific items of property, rather than a person’s whole estate. There are several advantages and disadvantages to using a living trust.
Living trusts have various pros and cons associated with them. Depending on your needs and desires, the characteristics of a living trust can either work for or against your situation. Some advantages of a living trust include:
Some disadvantages of living trusts include:
As mentioned, each of these features of a living trust may work to your advantage, depending on your needs. For example, you might not want to cover your entire estate, especially if your estate is small and you only want to transfer a specific item of property. In such cases, the limitations associated with a living trust might actually work to your benefit.
Drafting and enforcing a living trust can be a complicated matter. If you need assistance with the transfer of your property, you may wish to hire a lawyer for assistance. An experienced attorney can help inform you as to whether a living trust is appropriate for your situation. Also, if any disputes arise, your lawyer can represent you during a lawsuit.
Last Modified: 05-29-2014 11:25 AM PDTLaw Library Disclaimer
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