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JK Lasser's New Rules for Estate, Retirement, and Tax Planning, 6th Edition
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JK Lasser's New Rules for Estate, Retirement, and Tax Planning, 6th Edition

by Stewart H. Welch III, J. Winston Busby
February 2019
Beginner content levelBeginner
352 pages
9h 14m
English
Wiley
Content preview from JK Lasser's New Rules for Estate, Retirement, and Tax Planning, 6th Edition

CHAPTER 9Understanding the Living Trust

As its name implies, a living trust is one that you establish during your lifetime. The trust can be irrevocable, but the term usually refers to a revocable trust. Living trusts are sometimes touted as the worry‐free estate‐planning vehicle. This is typically not the case; however, the living trust can be an excellent estate‐planning device in the right circumstances.

In the typical living trust, you set up the trust and make yourself the trustee. You then retitle your property in the name of the trust. Once this is completed, you manage your property as you always have, with one or two key exceptions. One of the key components in the living trust is that you will name a successor trustee in the event of your death or incapacity. This explains why people often think of the living trust as a substitute for a will. This is only partially true. As you will find out, there are both significant advantages and disadvantages of the living trust. By examining them fully, you will be in a better position to determine if a living trust is appropriate for you.

Advantages of Living Trusts

  • The most often cited reason for setting up a living trust is to avoid the probate process. As we discussed in Chapter 6, probate in some states can be an expensive and time‐consuming process. Any property that you transfer to your living trust will avoid the probate process altogether. This means you avoid some expenses and lengthy delays as they relate to the ...
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Publisher Resources

ISBN: 9781119559139Purchase book