Estate owners set up a living trust to protect their assets. Probate courts manage all estates after the owner dies. The probate process introduces serious risks to the estate owner. A living trust could be the answer to protecting the assets of their heirs.
Avoiding Probate Altogether
A living trust won’t go through the probate process. Probate is for estates and assets owned by estate owners. By transferring assets out of the estate, they avoid the probate process.
Estate owners choose assets to transfer. The attorney transfers ownership from the estate owner to the trust. All documentation shows the trust as the owner of the assets. This means the assets aren’t owned by the actual owner on titles and deeds, but they maintain control over the assets. The probate process allows creditors to seize assets according to realtimecampaign.com. The trust prevents the seizure of assets and protects them for their intended recipients.
Preventing Inheritance Tax
Heirs won’t pay any inheritance tax because they don’t receive the assets from the estate. They pay property taxes on real estate. The heirs pay income tax on any monetary awards.
Yet, the trust isn’t the same as the estate. Although the heirs inherit assets from the estate owner, the process isn’t the same. Properties transfer from the trust. The trust isn’t the estate owner; it’s a separate entity. Estate owners can continue to find out more about the living trust.
There Aren’t Any Public Records
Estate owners create the living trust without any public records. Creditors won’t find documentation of the trust. They cannot see what assets are in the trust. Even if they have a lien waiting in probate, the creditors cannot take any action.
Creditors wait for estates to enter probate to collect outstanding balances. They apply a lien against the estate and get the balance through the court system. A living trust prevents these actions. Estate owners can contact a law firm such as CumminghamLegal for more info.
Protects the Estate Owner If They Become Incapacitated
An estate owner identifies a trustee in the living trust. The trustee handles the trust for an incapacitated estate owner. They aren’t the successor in every case. The trustee may have limited rights to the trust and its assets. Yet, they control the estate owner’s healthcare needs. They can read, “Conservatorships in California: Everything you need to know | The Price of Care,” for more info.
Provides a Successor For the Trust
The successor gets control over the trust when the estate owner dies. It is a spouse or heir in most cases. The estate owner makes the choice when establishing the trust. With help from a firm such as CunninghamLegal, they can set up stipulations to ensure heirs get assets in the trust.
Estate owners need asset protection. A living trust is a wonderful option to protect the assets. It allows asset transfers from the estate to the trust.
With a living trust, the assets don’t go through probate. The heirs get their inheritance, the estate owner chooses a successor, and they rest assured that the assets are safe.