A living trust is a great way for working professionals and others to protect their assets against potential legal entanglements while
also protecting them for eventual beneficiaries. A living trust works much like a will with a named trustee in charge of the assets. The trustee can be anyone, including the individual in whose name the trust is made. A trust also can name a family, couple, individual or others in the trust, and the trustee will be in charge of administering the trust during your lifetime. If you are like most people who create a living trust, you will name yourself as the trustee and maintain full control of your assets without having to deal with as high of a tax burden if the assets remained unprotected and in your name.
Revocable Trusts Can Be Changed or Eliminated
A popular trust for many people is a revocable trust that allows you and whoever else might have created it to make changes to it or even revoke it completely and regain full control of your assets. The only requirement for amending or revoking a trust is that you or others be mentally competent at the time the changes or revocation occur. If you name someone else as trustee, that person will manage your assets for the rest of your lifetime and help to ensure they are distributed to the proper beneficiaries upon your death.
How a Living Trust Can Help You
Nearly anything can happen during your lifetime, and if you ever are incapacitated or otherwise no longer capable of making decisions due to an accident, illness or any other cause, your assets will be managed according to the instructions provided in your living trust. Living trusts work best for those who have significant assets to manage and protect and generally should be avoided by those who have few or no assets and are just starting a marriage or family while still working on improving career and earnings opportunities.
Which of your assets might a living trust help protect?
