Living Trust - Do you have one?

A living Trust is something every home owner should have.

One of the greatest benefits of a Living Trust is its ability to avoid probate for those assets contained within it, provided the Trust is drafted and maintained correctly. Probate avoidance is very beneficial for your estate and heirs because it often takes between one and a half to three years before assets are distributed to your intended beneficiaries. Moreover, probate fees are determined by statute and based on a percentage of the estate's value. For example, probate fees on a $100,000 estate could be approximately $12,000. They are mandatory and taken from the estate before any assets are distributed. A Will is subject to probate, a Trust is not.

Since probate is avoided for those assets contained in the Trust, such assets may pass to the beneficiaries immediately upon death. This is especially important for assets which need constant supervision or management such as a dental practice or stocks and bonds whose value can fluctuate rapidly.

A Trust has many other beneficial attributes. Provided the Trust is funded, a Trust avoids the problems of heirs contesting your Trust. Furthermore, financial support can be established for minor or disabled children or family members through the use of a Trust by naming a Trustee to manage the assets and provide for those individuals under specified guidelines.

You can create one yourself through websites like Legalzoom.com or through an attorney. Attorney's charge anywhere from $800 to $2400 depending on the complexity of the trust.

Review this Living Trust FAQ.