Living Trusts

A living trust, also known as a Revocable Living Trust or a Family Trust is a legal document that holds title or ownership to all your real and personal property and other assets. When you create a Revocable Living Trust, you must transfer ownership of your assets to the living trust. Transferring assets is typically called "funding." When you transfer title, you do not relinquish ownership. You can still buy, sell, borrow, or transfer against these assets. You can be the trustee of your own living trust there by keeping full control over all property held in the trust. The main benefit to making a living trust is that all property in the trust does not have to go through the probate process. Probate is the court-supervised process of paying all of your outstanding debts and distributing the remainder of your property to the people who you desire to inherit it. The average probate can last for months or even years before the beneficiaries can get anything and by that time, there is less for them to receive due to probate fees. In many cases, lawyer and administration fees have eaten up about 10% of the property.