It might seem far off and unimportant in the moment, but creating a means of passing down your assets to loved ones and friends after you pass away is an essential part of life. Many people create last will and testaments as a way to complete this transaction. However, this can be complicated, involve frozen assets, incur taxes, and cost extra for probate. A living trust is an alternative option to that. While you can create your own living trust, you may want to consider hiring an attorney, as not everything is clear cut. Here’s what’s involved with a living trust and reasons you might want to consider using an attorney’s services.
Definition of a Living Trust
A living trust is simply a way to manage your assets while you’re still alive. It is a document meant to clarify who will be in charge of the assets when you become incapable of managing it yourself or when you pass away.
Everything Involved in a Living Trust
The details of a living trust are fairly straightforward and simple. First, you’ll need the name of the creator of the trust, which is yourself. The next name is the person who is currently in charge of the trust, which will be you again. The third person is called the trustee, and this is the person you want to be in charge of your trust and assets when you are no longer capable of doing so, or when you are deceased. You’ll want to include the names of all the beneficiaries you plan on inheriting any of your assets, and you may include another trustee to handle more minor assets to be passed down to different beneficiaries.
Reasons to Hire an Attorney
While you may be perfectly capable of making your own living trust, you may still want the help of an attorney. Laws vary from state to state and can change how your living trust turns out. If you don’t understand these laws, your living trust may be more challenging to deal with in the future. An attorney will know your state’s laws inside and out and be able to advise you on the best way to proceed. Certain documents need to be collected and put in order to create the proper trust, and an attorney can tell you exactly what you need. They can ensure your trust is all ready for when it’s really needed.
If you’re still not sure about how to proceed, or if a living trust is the right way to go, contact a Sacramento estate lawyer for a quick consultation. They can help you with any questions and advise you on your next steps.
Thanks to the Yee Law Group for their insight into estate planning and hiring an attorney to create your living trust.