Living Trust

Living Trusts

A living trust is a type of trust created for the purpose of holding ownership to an individual’s assets during the person’s lifetime and for distributing those assets after death.

Living Trusts are used because to allow assets to be passed to heirs without going through probate. Avoiding probate may save some costs, time, and maintain privacy. Living trusts also can be used in planning for the contingency of incapacity.

Despite the advantages, there are also some negative aspects to think about when considering an inter vivos trust. Beneficiaries do not save on estate or state inheritance taxes. Also, they are expensive to set up, and the expense is immediate, not after the grantor’s death.

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