What Are The Benefits Of A Living Trust?
Living trusts offer many benefits. They can preserve property for the next generation, protect assets from depletion, and reduce or eliminate estate tax liability. There are many types of living trusts. Selecting the correct type requires a thorough understanding of the law, the available options and the processes involved.
Based in Everett, our attorneys of Cogdill Nichols Rein Wartelle Andrews (CNRWA) are highly skilled estate planners. We take the time to tailor trust documents to fit the needs of each individual client.
What Is A Living Trust?
When an individual — called the grantor — creates a trust during his or her lifetime, that trust is considered a “living” trust. This is different from a testamentary trust that is not created until after the grantor has passed away.
Living trusts can take different forms, depending on the grantor’s financial circumstances and goals. Living trusts may be revocable or irrevocable and contain many terms and conditions.
Should I Have A Living Trust?
Determining whether a living trust is necessary and/or helpful depends on your individual financial and familial situation. If you have significant assets or family legacy properties, you want to ensure they stay in the family ‒ a living trust may be right for you. Living trusts are also helpful when individuals have special needs family members or other family situations in which they wish to exercise some “dead-hand control” over how their assets are used in the future.
At CNRWA, our lawyers will work closely with you to determine whether a living trust is right for you. We begin by evaluating your financial assets and your familial situation. Once we have a clear understanding of your estate and your goals, we can recommend the appropriate estate planning vehicles.
Living Trusts — Part Of A Comprehensive Estate Plan
A living trust is typically created in accordance with a more comprehensive estate plan that includes wills, powers of attorney and guardianship documents. At CNRWA, we build all pieces of your estate plan together, so they work as one comprehensive whole to enact your estate planning goals.