Living Trusts: Common Misunderstandings
As any experienced estate planning attorney St. Peters, MO residents trust might tell you, it is important to start planning your estate while you are still in good health. Unfortunate events may occur, leaving your loved ones with asset litigation issues in addition to their grief. The Legacy Law Center has been helping families plan their estates since 2012. Our attorneys have experience in developing estate plans for a variety of clients’ needs.
It is highly recommended to plan your estate ahead of time to avoid a potentially lengthy probate court process. In many cases, living trusts or revocable trusts may be used to plan an estate. However, these documents are not perfect for everyone. An estate planning attorney St. Peters, MO can provide from our firm may be able to help you decide what plan best suits your wishes.
A living trust might be beneficial for managing your estate. For more information, you can always contact a estate planning attorney in St. Peters, MO for a consultation. In the meantime, here are a few aspects of living trusts that many people do not know.
Who is involved in a living trust?
A living trust, sometimes referred to as a revocable trust, is a contract that may be adjusted or revoked throughout your lifetime and it is used to plan an estate. A living trust can generally be divided between three parties: the grantor, the trustee, and the beneficiary.
- The grantor is the individual who writes the trust and who initially owns the estate.
- The trustee is the party responsible for managing the assets within the trust. Managing could refer to buying, selling, or loaning assets within the trust.
- Finally, the beneficiary is the party eligible to inherit the assets within the trust.
The grantor, trustee, and beneficiary are usually all the same party initially. After passing, a successor trustee will take over the management of the assets and the successor beneficiary or beneficiaries will be eligible to inherit the estate.
One major benefit of a living trust is that assets within the trust are not subject to probate. This is appealing to many since the probate process can be lengthy and costly. However, depending on the state, if the deceased had developed a proper will, the probate process may actually be relatively short and affordable.
A living trust can sometimes be expensive to develop and to maintain. A last will and testament, however, can be significantly more affordable. If your state offers a smooth probate process, a will could be the better option. An estate planning attorney St. Peters, MO has to offer can review the two options with you and help you understand more about each one.
Living Trusts and Assets
Assets within the living trust are still subject to creditors. The successor trustee may open a probate estate in order to begin the time requirement for creditors to collect. After death, creditors may be given an allotted amount of time to file claims toward the estate; if the time expires, the creditors will have to accept the losses.
Only certain assets may be included in a trust. For example, you may not include a retirement plan in a living trust.
It is not uncommon for some assets to be forgotten in the formulation of a trust. Any assets not included in the trust are subject to probate court. In cases where assets are left out of the living trust, the family will be required to endure the probate process in order to receive those assets.
Consult With an Estate Planning Attorney St. Peters, MO Families Depend On
Though there may be misunderstandings when it comes to living trusts, they may still be a viable tool when planning your estate. An St. Peters estate planning attorney from the Legacy Law Center may be able to sit down with you and discuss options that best suit your wishes.
Every estate is different and complying with state and local laws is imperative, so the advice from one of our estate planning attorneys may be able to save you time and money in the long run. Give us a call at 636-887-5257 and schedule a consultation with an estate planning attorney St. Peters, MO trusts from the Legacy Law Center.