Living-Trusts

Use Living Trusts, Asset Protection Trusts and Simple Trusts to Eliminate and Reduce Estate tax, to Protect Your Wealth and to Avoid Probate in Transferring Wealth to Future Generations.

What is a living trust and why would you want one. In essence a living trust serves the same purpose of a will; it’s intended to be a means of transferring wealth to your family upon death.

A living trust is valid within itself but with a will everything must go to probate – which in itself is the problem. Probate is the process that determines a will’s validity in court. This has evolved to include the complete administrative process that is required to transfer ownership from the deceased to the persons named in the will.

If this process is not contested, it can proceed relatively quickly. The average time for probate is 12 to 18 months. In this process all property is inventoried, creditors are identified and paid but only after all fees are paid to the estate’s attorney, executor and all tax entities. Contrast this with a living trust which takes effect immediately.

It is also the reason a lot of frivolous lawsuits are started knowing full well the other party would prefer to settle out of court rather than go through a lengthy and disruptive court proceedings. To counter do asset protection planning and implement asset protection strategies.

When Elvis Presley died his estate was worth over 10 million dollars, after probate all that was left for the family was a little over 2 million dollars. The tax cut in it self can be quite severe. Because they did not have a living trust or an asset protection trust in place the Wrigley family of chewing gum fame had to sell off thier beloved “Wrigley Field” just to pay off the probate taxes.

Right now, we are facing the greatest transfer of wealth ever to the Baby Boomers’ generation. One can reasonably expect that significant delays in probate process will become common place. One might consider a living trust just for that very reason.

A living trust is one solution; simple trusts and asset protection are other complementary solutions. The greatest feature of a living trust is that is avoids having to go through the probate process. In that sense it is quick expedient, non-taxable, less costly in all respects ensuring that all of ones assets are efficiently transferred.

The reason it is called a living trust rather than an “irrevocable” trust is that it allows one to retain ownership of ones property while one is alive. In addition one is free to change the terms and conditions of the trust as circumstances change. As the trust like a will does not come into effect until death occurs you have satisfaction of having complete use and control of ones assets and knowing that the interests of future generations are taken care of. Consider using trusts and asset protection trusts as part of your families asset protection strategy.