A living trust is a legal document established during your lifetime for the purpose of managing your estate. Similar to a will, when properly drafted living trusts have several advantages including tax benefits and the avoidance of probate. A living will is also usefully for maintaining privacy as it circumvents the probate process and therefore is not part of the public record. A revocable living trust can be modified as necessary or completely revoked.
Typically, the grantor, the individual creating the trust, also functions as the initial trustee during their lifetime. In the event you become incapacitated, your living trust can designate a successor trustee to help manage your assets for your benefit. At death, the successor trustee will administer the trust per your instructions outlined in the document.
Since a living trust avoids probate administration, the expense of estate administration and court costs can be minimized. Further, unlike a will, the administration of a living trust by your successor trustee is not supervised by the court. This will save your loved ones the expense and time related to estate administration.
If you have minor children, your living trust can be prepared to provide for them at a specific age or to distribute their share of the estate when they are deemed mature by the trustee.
An estate planning and probate Chapel Hill attorney at Bagwell Holt Smith P.A. can assist you with your living trust. Schedule a consultation today.