Creating a Living Trust – Costs, process and Benefits

in Real-estate

A living trust is an arrangement made during a person's lifetime that organizes their property to be distributed after their death. A trustee (usually the person initially) takes over the living trust and all the property covered under the trust. After the person has died, a succeeding trustee takes over and becomes responsible for distributing the property to the beneficiaries outlined by the trust. The principal advantage of a living trust is that it allows the estate of the person to avoid probate. Rather than enduring an overwhelming court process, the beneficiaries can receive the person's estate soon after the death. If you are interested in creating a living trust, you will want to know about the costs, the process, and the benefits.

Costs of a Living Trust

In itself, a living trust is not an extremely complicated legal document, especially for the common person. As a matter of fact, many people can create a living trust without having to hire a lawyer. As a result, the costs of creating a living trust are generally very inexpensive. If you have a large estate or other complicated issues, then contacting a lawyer to create your living trust is a wise idea. Most estate planning lawyers are willing to provide answers to questions or take over the creation of the trust altogether. Using a lawyer can get more expensive with the size and complexity of your estate, but generally still can be affordable. For most, creating your trust will cost somewhere between 50 and 2000 dollars.

The Process

Creating a living trust is a relatively simple process, assuming you know your estate and your plans to distribute it. To create the trust, you will need to establish the name of the trustor (yourself), the name of the first trustee (during your life) and the successive trustee(responsible for distributing property), and the beneficiaries of the trust. You will also need to know the components of your estate you plan to add into the trust, and will need proof of ownership. To make your living trust official, you will end up signing a "Declaration of Trust," a legal document defining the terms of the trust.

Benefits of a Living Trust

As mentioned earlier, the principal benefit of a living trust is avoiding the court probate process. Living trusts are also very structured, can be created far in advance, and are valid across state lines.

Author Box
Andre has 1 articles online

This article is provided as information only and not intended as legal advice in any means or manner whatsoever, the Law Offices of Adrian Philip Thomas P.A. provides focused legal counsel and representation within the area of Living Trusts, Estate Administration and Probate in Florida, and has provided this for informational purposes only.

Add New Comment

Creating a Living Trust – Costs, process and Benefits

Log in or Create Account to post a comment.
     
*
*
Security Code: Captcha Image Change Image
This article was published on 2011/05/23