Living Trust

This article has been written to provide some important living trust information by answering common questions, which are:

Will having a living trust prevent my beneficiaries and heirs from questioning it?

Discontented heirs or beneficiaries can question the validity of a living trust on grounds akin to that when questioning the validity of a will. It could be that the living trust was invalid because the trustor was not competent when he made the trust or was subject to duress or intimidation by another individual in making the trust for a particular purpose. Moreover, although the period to question the legality of a will is only up to three months, the law gives about two years to question the legality of a living trust. When the court upholds the will, the expenses in litigation can be paid from the properties subject of the will. This is also true when it comes to living trust.

What are the strong points of a living trust vis-à-vis a will?

Compared to probate, there are many distinctions, but also similarities in the way the properties are administered in a living trust vis-à-vis a will upon the demise of the trustor. As living trust information, there are some strong points in the management of a living trust, which are:

Always A Private Record. The conditions of a living trust and other living trust information are embodied in a document that is confidential in nature, whereas in a will, they are found in a public document.

In addition, other data included in the legal document on file with the probate court like the nature and extent of properties, and an accounting of all the income and expenses of the estate, consequently become part of the public records.

Ease In Management. Considering that a trust need not be filed in court, unlike a will, the trustee's management of the assets are not hampered by the court proceedings.

Economical. In probate courts, these are the usual costs to be incurred:

* Fees in the valuation of the properties * Payment to the one who will execute the will * Fees for the lawyer for handling the probate case These costs will not be incurred with respect to a living trust.

Expedited transfer.

A trustee could start conveying ownership of the properties left by the deceased right after his death. On the other hand, the one in charge of executing the will cannot do so without the imprimatur of the probate court. At any rate, it would be better for the trustee to study first the situation before he undertakes the transfer of ownership of the properties.

Dispensing With Several Probate Cases. Finally, should the deceased acquire several real properties in different states, a living trust may be utilized for the purpose of doing away with several probate cases in several states.

What are the weaknesses of a living trust vis-à-vis will?

Lifetime Obligation

It is important to note as living trust information, that fulfilling the terms and conditions of a living trust is, in majority of cases, not a short-term undertaking, compared to a will. Just because a living trust was already executed, it does not mean that such an arrangement will no longer be under the scrutiny of a probate court. As important living trust information, it must be emphasized that you must transfer the ownership of the properties to the trustee for the benefit of the beneficiaries, through a duly executed and registered legal document.

Expenditures Before the Demise

One more important living trust information is that while a living trust may be economical in some aspects compared to a will, still, the latter is also economical in the standpoint of how long will there be expenditures. The expenditures related to the making of a living trust, basically, are greater than those for making a will. The execution of a living trust does not mean that a will need not be executed anymore considering that properties may not have been transferred to the trustee before the demise of the trustor.

Moreover, it is the will, and not a living trust that is utilized is designating the guardians for the heirs of minor age. Likewise, there are expenses to be incurred when one transfers the ownership of the properties in favor of the living trust. In fact, there will be more expenses, if the trustee is another person because in such a case, such person must also be paid for his services.

Setting Up A Living Trust |