Living Trust Frequently Asked Questions

Are living trusts right for everyone overall?

When planning your estate is it important to realize that living trusts are not right for everyone. It is best to speak with your attorney when forming living trusts for such beneficiaries as minors, or if you prefer to keep your living trust & wills as well as other estate planning private, or if you own real property, or if you have more than the exclusion amount which is most commonly applicable. Also, speak with your estate planning attorney if your main concerns are ain regards to probate and the hassles and expenses involved with the processes.

Will my living trust be kept private?

If you are able to avoid probate court and probate processes overall then your estate planning will in most cases be kept private. However, it is important to note that when real estate is transferred, it is usually that of a public matter as opposed to private.

Do living trusts save money overall?

Overall, through living trusts, everyone saves on attorney fees as well as court costs which come into play during probate proceedings.
Even though it may seem as though all money is to be saved through living trusts, it is also important to consider the taxes as well as transefer fees involved in order to provide the assets to the beneficiaries in the living trust & will.

Can I save on estate taxes through living trusts?

Estate taxes are not necessarily saved through living trusts. The same provisions provided through living trusts can be provided through a simply will.
So overall, a living trust will not provide  many tax advantages over all of a grantor’s other options.

Is it best to always avoid probate?

Every situation is different and can provide completely different scenarios. Many states have been able to provide a more convenient and easier probate process over the years which becomes much less of a hassle for many grantors in the long run. However, it may be better to simply set up a living trust through an estate planning attorney to help avoid many of the future complications which may arise later once the court becomes involved.

Will a living trust help in the case one becomes unable to attend to their assets or incapacitated?

Yes. If a grantor becomes incapacitated, the assets will be controlled through trustees and those involved in the formation of the living trust before the individual became incapacitated. However, it is important to speak with an estate planning attorney in regards to the specifics of living trusts and possible future incapacity as there may be more savings in many cases by NOT having a living trust.
Please do your research.