How to Protect Your Family’s Assets with a Living Trust
Are you aware that your hard-earned assets could be at risk without proper planning? A living trust can ensure the security of your family’s future. And we’re not just talking about wealth but what you’ve worked tirelessly to build, from your home to your retirement savings.
A living trust—a legal mechanism that can protect your family’s assets from unforeseen circumstances, probate, and unnecessary taxes—is a great way to protect your loved ones. However, the process of setting up a living trust can seem complex and daunting without the help of an experienced estate planning attorney.
This article aims to simplify the process of how to use a living trust to protect your family’s assets. Let’s get started.
Summary
- Understanding What a Living Trust Is and How It Benefits Your Family
- How Do You Create a Living Trust?
- What Happens to Your Living Trust After You Die?
- Working with a Qualified Estate Planning Attorney
1. Understanding What a Living Trust Is and How It Benefits Your Family
A living trust, at its core, is a legal document that allows you to place your assets—like real estate, bank accounts, or valuable items—into a trust during your lifetime and then transfer them to designated beneficiaries upon your death. Of the many benefits of a living trust, these are the key ones families should keep in mind:
- Bypassing Probate: One of the main benefits of a living trust is that it bypasses the often lengthy and costly probate process, allowing your beneficiaries to gain access to these assets more quickly.
- Protecting Your Privacy: In addition to bypassing the sometimes public probate process, a living trust provides privacy, as it’s not made public, unlike a will. The details of your estate and to whom you’re leaving your assets remain confidential.
- Control of Your Assets: A living trust also offers greater control over how and when your assets are distributed. For instance, you can specify that your children only receive their inheritance once they reach a certain age or achieve a specific milestone like graduation.
Protection in Case of Incapacity: If you become unable to manage your affairs due to illness or incapacity, a living trust allows your chosen trustee to step in and manage your assets on your behalf. This can avoid the need for a court-appointed conservatorship. - Potential Tax Benefits: Depending on your circumstances and the type of trust you set up, there may also be potential tax benefits to establishing a living trust.
In essence, a living trust gives you peace of mind in knowing that your family’s future is secure and that your assets will be managed according to your wishes.
2. How Do You Create a Living Trust?
A living trust is a complex legal document and should always be set up with the help of a professional to ensure that all legal requirements are met and your assets are fully protected. Here are the steps your estate planning attorney will help with:
- Decide which type of living trust you want. The first step is deciding on the type of living trust you want to create. A revocable living trust can be changed or canceled at any time. An irrevocable living trust cannot be altered without the permission of the beneficiary.
- Appoint a trustee. Appoint someone you trust to manage your assets. This can be yourself, a trusted friend, a family member, or a professional trustee.
- List your assets. The next step is to list all the assets you wish to include in the trust. These can include real estate, bank accounts, stocks, and valuable personal property like jewelry or antiques.
- Designate beneficiaries. Name those who will receive your assets upon your death.
Once all these steps are completed, the document is prepared and signed in the presence of a notary.
3. What Happens to Your Living Trust After You Die?
After your death, the control of your living trust transfers to the trustee you listed in your trust document. This person has the legal responsibility of settling your affairs.
The trustee’s duties typically include collecting the assets, paying debts (if necessary) and taxes owed by the trust, and allocating assets to the beneficiaries. Unlike a will, this process happens without court involvement, offering a more private and often faster way to settle your estate.
Remember, the specifics can vary based on personal circumstances and local laws, so the help of an estate planning lawyer is recommended.
4. Working with a Qualified Estate Planning Attorney
Establishing a living trust is an effective way to protect your family’s assets, ensure your wishes are respected, and provide a smooth transition of wealth upon your death. Always seek professional advice to ensure your trust meets your specific needs and that all legal requirements are met.
If you are searching for a Wauwatosa estate planning attorney, the team at Margerie Law can help you navigate this process with ease. Margie Law specializes in estate planning for families, trusts, wills, real estate law and more. Call us today so we can help you protect what matters most.
By Paul Margerie, Owner of Margerie Law
Paul Margerie of Margerie Law is a knowledgeable and experienced estate planning attorney based in Wauwatosa, WI. With years of experience helping families and individuals with their estate plans, he offers a gentle touch that puts his clients at ease. He understands the sensitive nature of this work and ensures that all details are taken care of with precision and accuracy. He strives to help each client achieve peace of mind that their future is protected by providing personalized advice and creating tailor-made solutions that fit their individual needs.
