Life is a kaleidoscope of surprises, some happy and some unpleasant. If some day, life exhibits its nasty sense of humor and leaves you physically or mentally incapable of managing your assets and wealth, your secure world could turn upside down. However, if you are a wise person, you should anticipate such unpleasant events as well and secure your sustenance through such conditions. Living trusts in Moline, IL area are meant exactly for this purpose and for many others. Read on for more details.
What exactly is a living trust?
A living trust is a trust which you form during your lifetime with yourself as the trustee and beneficiary, although you can name other beneficiaries who will benefit after your death. This is in contrast to the conventional trusts where there are two people involved – a trustee and a beneficiary. You can place all your material assets such as real estate, jewelry, bank accounts, stocks and other valuables in the trust and secure them. In case you become incapable of handling your finances, the trust takes care of your sustenance. After your passing, the trust passes on to the beneficiaries whom you name in the trust.
What are the advantages of a living trust?
Several people, realizing the benefits of such a facility, have created their living trusts in Moline IL. Below given are the major benefits.
You have full control of your assets, despite placing them in the trust, as long as you wish or as long as you are capable of managing them
You have the option of appointing a successor trustee, who will be responsible for managing the transactions of the trust in case you are incapable of doing so yourself. However, the trust puts your interests at the forefront and prohibits the successor trustees from using the trust’s assets for their personal use, unless you authorize it
Your wealth is consolidated into the trust and makes it easier for you to manage it. If you have a large number of assets, having a living trust can be extremely beneficial
Although a living trust is almost like a will, it gives you and your successor trustee the freedom to make transactions without court intervention
After your death, the successor trustee acts on your wishes, clears off any outstanding debts and distributes the wealth among your inheritors without the need of legal intervention, which is in contrast to a will where legal intervention is necessary. If you make a living trust, your inheritors receive money immediately after your death and do not have to go through probate
If your estate is priced more than $100,000, a living trust can help you minimize estate taxes by maximizing Unified Credit
Unlike a will, a living trust is not made public
On the flip side, you have to go through a lot of paperwork to set up a living trust. But once done, you can live in peace.