What is a Living Trust?
A living trust is a legal document into which assets and property can be placed. It establishes a trust for any assets you want to transfer into it. You have complete control of all assets in your trust, and may manage the assets any way you want.
A living trust is revocable and you retain the legal right to make any changes to it whenever you want as long as you are competent.
A primary reason for establishing a living trust is to oversee the transfer of your assets after your death. A living trust is effective immediately upon signing and funding it.
Florida attorney Reed Bloodworth, Founder and CEO of Bloodworth Law, explains that one of the most common estate planning trust instruments that an attorney prepares is a living trust.
A Living Trust Holds Assets, Property
The living trust is established by a document and is placed into the ownership of a trustee.
The trustee takes control of the assets in the trust and is responsible for distributing them to beneficiaries as the trust directs.
You can be the trustee or you can name someone else as the trustee.
There are usually at least three parties to the trust instrument: a settlor or grantor, the trustee, and the beneficiary. The settlor or grantor is the person who forms the trust and funds the trust with property.
Trustee: You, Your Spouse, Financial Firm, Relative
The trustee holds a fiduciary duty to administer the trust property for the beneficiaries in accordance with the trust’s terms. The trustee may be you, your spouse, a close relative, a bank, or a trust company.
The beneficiaries are those designated in the living trust that will receive a benefit from the trust. A living trust can be a powerful tool for passing the benefit of your estate to loved ones on whatever terms you decide.
A Living Trust Offers Protection
This “living” protection is one of the most valuable aspects of a living trust.
With increasing longevity, we are at greater risk of experiencing a disability that renders us unable to manage our personal and business affairs.
Living Revocable Trust
A properly drafted living revocable trust provides assurance that should disability occur, your affairs will be managed by whom you want, how you want. This also reduces the possibility of a court-appointed guardianship, a public and costly process.
The right time to create a living trust is when you’re ready to plan for you and your family. Bloodworth Law provides Florida estate planning legal services and the creation of legal documents to protect you, your family, your assets, and your future.
Attorney L. Reed Bloodworth has offices in Orlando, and Winter Haven, Florida. Talk with Reed about estate planning and find out how Bloodworth Law can help you prepare for your future.Consider sharing this post