Why Do I Need a Living Trust?

The benefit of having a living trust is to help ensure that property will be properly administered and held in the name of the willed individual. The 3 main positions covered are beneficiary, grantor and trustee. These three positions can be differentiated in that the grantor is the individual who actually sets the trust up with their assets while the trustee actually is the one managing the trust according to the grantor and the law.
The beneficiary is the one who actually is on the receiving end of the living trust whereas they will receive what assets the grantor has placed into the living trust which the trustee monitors in accordance of a trust document.
In many cases, the grantor will also serve as the trustee as well.
Of the trust documents, there are two basic types of trust which are revocable and irrevocable trusts.
The revocable trust may be changed whenever the grantor deems necessary whereas the irrevocable cannot be changed without approval from the court.
The main reason grantors may choose to have a living trust are in order to obtain certain tax benefits from formation of living trusts in addition to credit protection for living trust beneficiaries.
However, these reasons for living trusts may be very viable, the main reason many choose to form a living trust is to avoid any type of probate situations as all transfers of trust properties will avoid all expenses and hassles often experienced through probate.
Many grantors choose the living trust route also as a way to control how the beneficiary receives the assets. For example, a grantor may deem an individual beneficiary too young to receive an entire estate at the age of, say, 10. So they will set up the trust so that the beneficiary will receive certain assets gradually as they become mature enough to handle such assets.
Another way the grantor may regulate these is through the trustee whereas the trustee will release funds only if there is an actual need for such expenses as medical expenses or more.
Overall, many grantors just want to be sure their assets are used properly and not wasted by beneficiaries while also making wise decisions in regards to taxes and expenses related to other means of transferring of property and assets.