by Elizabeth Kells

Created on: September 28, 2007   Last Updated: October 31, 2008

A living trust, is it something that will help or make very little if any difference?
A living trust is a legal document that can in part replace a will. A trustor (the person creating the trust) puts their property and other assets in a trust to be administered to themselves while alive and then their beneficiaries after they pass. The trustor usually includes directives for managing the property and other assets that had been transferred.

A will is something that everyone should have that is not the case with a living trust. Even if a living trust is decided upon, you should not forgo a will. A will is needed for anything that is titled in your name not the trust's. It is also important to remember that even though a trust might have been created for your children it does not stipulate their guardian. Another difference between the two is that a living trust unlike a will does not need to be court supervised.
Who Does Not Need a Living Trust?

Someone with very few assets
A married couple with few assets who haven't any children
Someone who wants court supervision over their estate

Who Could Benefit From A Living Will?

A person who owns property other than personal
A person with a vast estate
Someone whose assets equal more than $50,000

A living trust is usually constructed to avoid probate proceedings and to be able to make plans for your estate. It is true that a living trust might look more appealing than probate court, but there are downfalls. It is quite normal for the cost to be higher for a trust compared to a will, but it is not a definite. It is also important to remember that a trustee is in charge and there is every chance they might not do exactly as you wished or even acknowledge your wishes. It is true that an interested party might file a petition to enter your trust into probate court, but it is not a given.

If you do have a considerable amount of assets and you do not want your loved ones to go through probate court a living trust is the answer. It is also true that accidents happen and if a living trust exists then you chose a successor trustee. If you did not choose someone to handle your estate then the one given that job might not have been someone you would have chosen.

Is A Living Trust For You?

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