What Is A Living Trust Agreement

Note that for people with simple estate plans and for young married couples with no significant children or assets, a living trust is unlikely to be financially advantageous. Maybe you`re thinking about the next generations of your family. Or you may get older and need help managing your assets without giving up control. Establishing a revocable trust is an option for estate planning. It`s worth taking a closer look at living trusts and whether they might work for you, as almost anyone can create one as part of their estate plan. But the truth is that only a small percentage of people actually need it. Find out how to properly fund your trust so that it achieves your goals and what assets you should not transfer to your trust. Remember that it really all depends on your financial situation. You can then list the assets you will put in the trust as well as your beneficiaries. As a general rule, you should not serve as a trustee if you form an irrevocable trust, nor can you take back your assets after transferring them to an irrevocable trust. Nor can you cancel or dissolve such trust. Unlike a revocable trust, where you reserve the right to dissolve or amend the trust at any time (as long as you are mentally competent), an irrevocable trust is for the most part eternal.

From this trust fund, the grantor can leave a complete inheritance to his heirs (called the beneficiaries). They also have the power to set certain conditions that must be met before beneficiaries can receive elements of the inheritance (such as a grandchir who completes college before inheriting the car).