A trust is created using the same requirements as a will. One of it's biggest advantages is that if the settlor were to become incapacitated, the trustee is allowed to continue managing the trust, which then avoids the necessesity of having a court-appointed guardian handling the property. Upon the death of the settlor, the trustee must pay any and all claims and taxes, and distribute the remaining assets to the beneficiary as determined by the trust provisions. Every asset, such as real estate, investments, and bank accounts, must be transferred to the trust during the lifetime of the settlor, not after, to get the most benefits from the trust. Those assets that are not transferred properly into the trust may be subject to probate.
For more information about a living trust, please click on the Contact Me page and send a message.