A trust is an arrangement by which a person (the Trustor) gives property to another (the Trustee) to hold and manage for the benefit of a third party (the Beneficiary) under the terms and conditions in a written document (the Trust Agreement).
What is a Living Trust?
A Living Trust is any trust established during your lifetime and not one established after your death through your will (that is called a "testamentary trust"). The legal term for these estate planning trusts you establish is a Revocable Intervivos Trust. We shorten that and just call them a Living Trust. In your Living Trust, you (or you and your spouse in a Joint Trust) are the only person involved. You are the Trustor, the Trustee and the Beneficiary all at one time. The key to the usefulness of a Living Trust for estate planning is that it operates from the moment it is created and funded, providing protection for you and your family during your lifetime as well as at your death.
Who needs a Living Trust?
Any resident of Mississippi with an estate of more than $30,000 or who owns any real estate will likely benefit from having a Living Trust to avoid having to subject their estate (and their family) to the probate process. Regardless of age, marital status, or estate size, most people can derive benefit from a Living Trust. But this type of plan is not just for death planning. There is as much (if not more) danger to your assets and your family if you become incapacitated as there is at the time you pass away. In fact, most small estates lose a greater percentage of overall value than larger estates when forced to go through probate or conservatorship. Why not avoid both?
What are the benefits of a Living Trust?
Some of the benefits of a Living Trust are:
- Avoiding the delay and expense of the probate process
- Preserving the confidentiality of all personal financial information
- Minimizing or eliminating death taxes for a married couple
- Minimizing or eliminating capital gains taxes on appreciated property
- Eliminating the need for the expense and burden of a conservatorship
- Protecting the privacy of your heirs
- Provide planning opportunities even after you are incapacitated
A living trust will deliver your property to whomever you want to have it, at the time you want it to be given, at the least expense, and with you in control.
Contact us
It is very easy to establish your Living Trust. A free initial conference will get us started. At the next appointment, we will review and carefully explain all the documents. The details of these arrangements, including the costs, are discussed at the first meeting, and you will know the cost to the penny before you decide to proceed with a Living Trust estate plan. Contact us to make your appointment for a free consultation to discuss your Living Trust and estate planning needs.
