Do You Need a Living Trust?

As you continue to review your options for estate planning, you may want to consider a living trust. If this is an option for you, MyLegalEdge.com offers living trust forms for your specific state. If you don’t see the form that you need, contact us at staff@mylegaledge.com.

What is a living trust?

A living trust is a document that partially substitutes for a will. Your assets are placed into a trust and administered for your benefit during your lifetime. Your assets are then passed on to your beneficiaries upon your death.

You can also name yourself as trustee and place yourself in charge of managing your assets. You can also name a successor trustee just in case you become disabled or you are unwilling to do so yourself.

Your living trust agreement can do the following:

• Gives the trustee the right to manage the assets in your trust,
• Instructs the trustee to manage the trust to your benefit during your lifetime,
• Names the beneficiaries who will receive your assets upon your death, and
• Gives direction and authority to the trustee to manage and distribute your trust’s assets.

Should everyone have a living trust?

The greater the value of the assets you own, the greater the need you will have for a living trust - especially if you own real estate. If your assets are not significant or if you have very simple estate plans, a living trust may not be the best tool for you.

What are the disadvantages of a living trust?

Living trusts are not under direct supervision of the court and a trustee who does not act in your best interest may take advantage of you. Also, keep in mind that a living trust may create additional paperwork in some circumstances.

If I have a living trust, do I still need a will?

Yes. Your will covers assets that are not included in your living trust upon your death. If you have a living trust, your will would typically include a pour over provision.

As you think about your financial security and the financial security of your family, you owe it to yourself to review all available options that would assist you in making the best choices in estate planning. MyLegalEdge.com can help you with this task by providing you with quality forms that are attorney drafted. If you need estate planning forms or if you need an estate planning manual, check out MyLegalEdge.com.