Living trusts are made to help

An Orange County living trust is a type of legal document that is prepared by a living trust attorney. With a trust, individuals can lay out the way they want their assets and property distributed among their heirs. Unlike a will, individuals can prevent assets from going through probate court. The living trust is distributed automatically after death. As a result, it is cheaper and less time consuming than a will is.

Living trusts are ideal for individuals who have complex personal and financial circumstances. Other than saving on time and money, a living trust ensures that the individual's personal information remains private. Normally, assets become part of the public record during probate court. Since a living trust bypasses probate court, personal information included in the trust remains private. The two main types of living trusts are:

An irrevocable trust: This type of trust allows you to permanently give away assets during your lifetime. When you create this type of trust, you irrevocably give away the assets. These assets are no longer considered a part of your estate, and you cannot undo this type of trust. While an irrevocable trust ensures that your assets are not taxed as a part of your estate, you will lose some control over the trust.

A revocable living trust: With a revocable living trust, some of your assets are transferred to the ownership of the trust. You or someone else are named as the trustee, so you can revoke the trust if you want to. The assets are still inherited by your beneficiaries, but you are unable to minimize estate taxes like you would be able to with an irrevocable living trust.

When you create a living trust, you name a trustee to transfer ownership of the trust to one or more beneficiaries after your death. Ownership is automatically transferred within a few weeks after your death. Unlike a will, a living trust does not have to go through probate court. Instead of taking months to go through the probate process, it is immediately transferred to the beneficiary. Other than saving on time, this option also eliminates the court fees or legal costs that your beneficiaries would have to pay with a will.

The simplest form of a living trust does not change federal or state estate taxes. Fortunately, only estates that have a net worth of $5.45 million or more are subject to the federal estate tax. Because of this, most living trusts are already exempt from federal estate taxes. Unlike revocable trusts, irrevocable trusts can avoid some estate taxes. If it is gifted during your lifetime, it is not taxed like the rest of your estate when you die.

Living trusts and wills are both written legal documents. Both legal forms allow you to designate heirs who receive assets after your death. Unlike a will, a living trust skips the probate process after you die. This saves your heirs time and money while ensuring their privacy. In addition, certain types of trusts can avoid estate taxes.

While making a living trust is not difficult, it will require some paperwork. If you want to include real estate in your trust, you will have to sign a new deed and transfer ownership. While transferring ownership may take time, it is not difficult to do. A living trust attorney can help you minimize the costs of setting up your trust. Overall, living trusts are about as complicated or uncomplicated as making a will.

With a living trust, you can reduce the costs of transferring property to your heirs. Trusts avoid probate court, which is one of the reasons why 20 percent of Americans have living trusts. Once you name a successor trustee, your property can easily be distributed to your beneficiaries after you die. As a rule, you are more likely to need a living trust if you have more property or assets to distribute among your heirs. To make sure that your trust is properly set up, make sure to use a qualified attorney to create and run the trust.