Trust Planning and Administration
A living trust is a plan which provides for the management of your estate during your life and then for the disposition of your estate following your death.
A comprehensive living trust estate plan will consist of several documents. These documents deal with a variety of circumstances that may come up. A typical living trust estate plan consists of the following documents:
- Living Trust.
- Pourover Will.
- Durable Power of Attorney for Finances.
- Property Agreement.
- Assignment (of Tangibles).
- Certification of Trust.
- Advance Directive for Health Care.
Some of the benefits of having a living trust are:
- Avoiding Probate. Because a trust does not require settlement in court, the legal proceeding known as probate is avoided.
- Avoiding Conservatorship. A living trust avoids the need for a conservatorship proceeding. A conservatorship proceeding is where the courts decide, in the unfortunate event you were to become incapacitated, who would handle your affairs. These proceedings can become costly and deplete the value of your estate. With a living trust in place, your spouse or other person named as the successor trustee will control the management of the trust estate and court proceedings aren’t necessary.
- Avoiding Guardianship. A living trust avoids the requirement for a guardianship proceeding. If your child is a minor at the time of your death, the trustee of your trust will manage the minor’s estate in trust and without court supervision. You can specify when and how funds are allocated to your heirs, preventing reckless spending or use of proceeds.
- Privacy of Estate. The administration of a living trust is private, because there is no public disclosure of the decedent’s assets or liabilities, thereby preserving the family’s privacy.