Living Trusts

An Expedient way to Transfer Assets and Avoid Probate

A Living Trust is a legal document that controls the transfer of property in the trust when a person dies. Also called “revocable trusts” – they are always established during an individual's lifetime and can be modified while that person is still alive. Circumstances do change and the option to make alterations in the trust is important. As you will see, the major benefit to a Living Trust is that it speeds up the process by which your property moves to your designated beneficiaries rather than going through Probate. (Click here for a Glossary of Estate Planning Terms )

The revocable provision means that while you live, you still control all of the property that has been transferred into the Trust. The trust, created in your lifetime, doesn't truly begin to function until you die. Then, the trust operates to transfer your property privately, outside of the reach of probate, to the specific individuals or organizations to whom you wish to leave your worldly possessions.

Living Trusts are also called "inter vivos" trusts, a Latin term preferred by attorneys. The Internal Revenue Service calls them "grantor" trusts and recognizes them as legitimate Estate Planning tools. All mean the same thing.

Probate. What is it? Why do People try to Avoid it?

Technically speaking, Probate is the process by which one proves the validity of a Will in court. If there is no one contesting the will, this should not take long. If there are complications, probate can take years. Probate has come to mean not just proving the validity of the will but the entire administrative sequence involving the passing of an owner's title to property after the owner's death.

The term "probate" also identifies the court which has jurisdiction over the estate probate and administration. Probate Court also has jurisdiction over the guardianship of minors and mentally incompetent adults. All wills go through probate.

The average length of the probate process is twelve to eighteen months. Any estate transactions that occur in that time must be approved by the Probate Court. This can create havoc for beneficiaries. Since a living trust replaces a Will and doesn't need validation from the probate court, considerable time and hassle can be saved.

A Living Trust is a capable substitute for a Will and simple to establish, and when the need arises, makes it easy to transfer property. The trust contains explicit instructions as to who gets what property after the owner dies. Like a will, the trust should cover all expected and unexpected events that might occur. The details tell the designated Trustee how to manage the money and property in the trust.

A Living Trust is a document that more and more people, disillusioned with the probate system, are including in their Estate Plans. Attorney Joel A. Bernstein is uniquely qualified to prepare your Living Trust and handle any other Estate Planning needs you or Family members may have. You can read about his background and experience on the About Us page and see his Client Testimonials.

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