If you are in the process of creating your estate plan, you might be wondering if you should create a living trust. To help you through the process, our Madison estate planning attorneys answered some of the most frequently asked questions about living trusts.
What Is a Living Trust?
A trust is when a person, called the trustee, holds legal title to the property for another person, the beneficiary. You can create a living trust, also known as a revocable trust, and still remain in full control over all property held in a trust. It is called a “revocable trust” because the trust can be changed and canceled while the trustee is still alive.
Which Assets Can I Put in a Living Trust?
You can add cash, securities, real estate, or life insurance policies into a living trust. If you’re unsure about which of your assets qualifies to be in a trust, you should speak with an experienced estate planning attorney.
What Are the Benefits of a Living Trust?
The biggest advantage of a living trust is that you can help your loved ones avoid the probate process. Probate is a long and costly process that will take place if you don’t include your qualifying assets in a trust. A trust can also help you avoid taxes and can make the transition of assets much easier.
Does a Living Trust Protect Property from Creditors?
No, a creditor can still seize property in a trust as long as the trust is still under your possession. If you owe debt after your death, your loved ones may use your assets to pay off that debt. For example, if you owe credit card debt, your spouse can use your vehicle to pay off your debt.
Have more questions about living trusts? Contact our Madison estate planning attorneys today at (608) 292-5185 to schedule a consultation!