Individually

One of the most common ways people own real estate is individually. As the sole owner, you have full control over the real estate. You can transfer it to anyone and can mortgage it. However, although the bankruptcy code offers some protections for personal residences, should you have creditor issues, the real estate could be vulnerable to being taken to satisfy debts or creditors’ claims. Additionally, at your death, the real estate will be transferred to the individual(s) named in your will (or trust) or according to state law, both of which will require probate court involvement to transfer ownership to your heirs. This can be a time-consuming, public, and expensive process for your loved ones (especially if the real estate is very valuable).  

Tenants in Common

When several people own real estate as tenants in common, the entire property is owned by the group, meaning that no one person can claim ownership of a specific portion of it. Yet the ownership does not have to be equal. One person can own a 25% interest (i.e. “share”) while the other has a 75% ownership interest. Each co-owner is free to transfer or mortgage their interest as they wish. However, the more co-owners, the higher the possibility for creditor issues. Although creditors can only collect from the co-owner that owes them money, they may be able to force a sale of the real estate to satisfy their claim. Upon a co-owner’s passing, their ownership interest will transfer to whomever the co-owner has specified in the owner’s will or by state law if no estate plan was prepared. Both options require the real estate to go through the probate process to transfer ownership to the co-owner’s heirs.

Joint Tenancy

For this type of ownership, also known as “joint tenancy with right of survivorship,” two or more individuals own an equal and undivided interest (share) in the real estate. When one of the owners dies, their interest automatically passes to the remaining co-owners, and the survivor(s) continue to own the real estate. Each co-owner is able to transfer their interest to another person, but the new co-owner does not become a joint tenant (with right of survivorship) but rather a tenant in common (whose interest does not automatically transfer to the surviving owners upon their death) with the original co-owners. One downside of joint tenancy is creditor exposure. Because there are multiple co-owners, creditors of any of the co-owners can go after the co-owner’s interest in the real estate to satisfy their debts or claims. The creditor may be able to force a sale of the real estate, even though the other co-owners may be against it. As mentioned before, a benefit of this type of ownership is that ownership is transferred automatically at death, avoiding probate. However, if you become the sole owner, then you will face the issues associated with owning real estate individually.

Tenancy by the Entireties

In some states, real estate received or purchased by spouses can be owned as tenants by the entirety. Although some of the applicable state laws still refer to the parties as husband and wife, with the proper language in a deed, which clearly demonstrates the desire to own the real estate as tenants by the entirety, all individuals who are legally married at the time they receive the real estate are able to own it as tenants by the entirety. This type of ownership can apply to any real estate, not just the primary residence. Because spouses are considered one unit, one spouse cannot transfer or mortgage the real estate without the other spouse’s consent. However, this also means that a creditor of one spouse cannot go after real estate that is owned as tenants by the entirety (with the possible exception of a federal tax lien) to satisfy the creditor’s claims. At a spouse’s death, the surviving spouse will automatically become the sole owner. This keeps the real estate and its value out of the probate proceedings, but as the sole owner, the surviving spouse will face the issues associated with owning the real estate individually.

In a Trust

Another option for real estate ownership is to transfer it to or have it purchased by a trust. As the trustmaker, you can establish rules for the use of the real estate, appoint a person (sometimes yourself) to oversee the maintenance of the real estate while allowing others (sometimes yourself) to enjoy it. However, it is important to note that the control and benefits can vary depending upon what type of trust is being used. If the real estate is in a revocable trust, then you will have the utmost freedom to manage and use the real estate if you appoint yourself as the trustee and name yourself as a beneficiary. But if it is in an irrevocable trust for asset protection purposes, the selection of the trustee and beneficiaries becomes more complicated. While a primary residence can be transferred to a trust with or without a mortgage, other properties with a mortgage might first require bank approval before it can be transferred to a trust. One of the primary benefits of transferring ownership of your real estate to a trust is that at your death, the real estate does not have to go through the probate process. This is because the trust, not you, is the owner, and the trust can never die. In most cases, the trust document will provide instructions about what will happen to the real estate upon your death.

By a Limited Liability Company

Another entity that can own real estate is a limited liability company (LLC). Instead of owning the real estate, you own a part of the LLC (known as a membership interest), and that is what will need to be transferred upon your death according to the terms of an operating agreement or estate planning documents, or based on state law if there is no will or trust. In the LLC operating agreement, you can also include rules instructing how the real estate is to be used and managed, as well as outline the rules pertaining to the membership interests in the LLC. One of the major benefits of using an LLC is that it provides limited liability. If a lawsuit is filed based on a claim arising from the real estate, or if a creditor seeks to satisfy a claim, the only assets available to satisfy any judgments or creditors are those owned by the LLC. In many states, if you have personal creditor issues, the creditors are limited as to what they can reach inside the LLC to satisfy their claims. It is important to note that the asset protection benefits of an LLC can vary depending on state or federal law, or your unique situation. If this is a concern for you, we encourage you to call us as soon as possible.

Give Us A Call Today!

Regardless of how you think you own your real estate, it is important that you review your documents and confirm your understanding with an experienced attorney. The title of your real estate can play a large role in how your estate plan is set up, and if your real estate is not titled properly, it can completely undo your intent for your estate planning. Give us a call today so we can review your deeds and create an estate plan that will protect your property for future generations. To schedule a consultation with an experienced Florida  Real Estate Law attorney, please call (954)- 317-1742 or send your request through the Contact US on the right-hand portion of this page.

The post Why Title Matters appeared first on Loevin Law Group.

Avoiding Probate

One of the appealing aspects of putting together an estate plan is to avoid probate. One way to avoid the probate process is to ensure that no assets will be titled in the decedent’s name, or providing for an automatic transfer of title, at death. Ways to accomplish this include joint tenancy with rights of survivorship, transfer-on-death (TOD) or payable-on-death (POD) beneficiaries, or use of a trust.

Joint ownership is easy to create and transfer property; however, this solution provides its own set of concerns. TOD and POD accounts can be efficient because, upon the account owner’s death, they immediately transfer the account, outside of probate, to the named recipient.  They are easy (and typically free) to set up. It is important to note; however, that in this case, the account is transferred to the beneficiary outright without any creditor protection. Another popular and efficient way to avoid probate is the use of a trust. If you place your assets in a trust, the trust, not you, owns them although you can control these assets and benefit from them as if they were yours. Accordingly, the assets do not go through probate because only property owned by the decedent goes through this process.

Note: If your estate planning consists of just a will, this document will go through the probate process. However, by using a will, you have the ability to determine who will get your assets – as opposed to letting the court decide for you.

Benefits & Downsides of Probate

While there are numerous estate planning tools that can be used to avoid probate, it is not always a bad thing. A probate court can ensure that your intentions and wishes listed in your will are carried out after your passing. Additionally, the probate process guarantees all presented debts are discharged as well as any outstanding taxes on the estate. This, in turn, results in finality to the affairs of the deceased – and surviving family members. Of note, if the deceased had outstanding debt, the probate process gives creditors only a brief window to file a claim against the estate, which could result in more debt forgiveness if there is a concern about the estate being insolvent.

That being said, there are downsides to the probate process. One such downside is the cost.  Due to the filing and inventory fees imposed by the probate courts, this is an additional expense eating away at the estate. Also, the probate process can be very time consuming. The probate must be open for a minimum period of time (in many states it is four months) to permit creditors to file claims against the estate. For most uncomplicated probate estates, it will take a minimum of one year to administer. Additionally, the lack of privacy can be a concern for some families.  The contents of your will, and any other documents that have to be filed with the court, will be a matter of public record.  Any disgruntled family member wondering how your estate was divided up, will have the ability to get access to the documents through the probate process. Lastly, the probate process takes control away from the deceased and the family. This is because, if you do not have a will, the probate process puts the disbursement of a deceased’s assets in the hands of the court and at the mercy of local intestacy law.

Get Advice

If you have questions about the probate process and intestacy laws in your state, feel free to give us a call and schedule an appointment. No matter if you have a little or a lot, a well crafted estate plan can help you avoid probate and make sure your loved ones are taken care of when you are gone.

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Understanding the Process

While the term seems scary, probate is a relatively simple concept: it’s a legal procedure that transfers assets from the deceased to their heirs or beneficiaries. When a will doesn’t exist or does not clearly outline a person’s plans for their estate after their passing, a judge will need to give legal permission for their assets to be passed on to their heirs. If a will does exist, the court is involved to ensure the Personal Representative administers and distributes the estate according to the terms of the will. This process, called probate, is more common than you might expect. Not only does the probate process invite the judge to become involved in the distribution of the assets, it can also be a very public, time consuming, and expensive process.

Depending on the value of the assets to be distributed through the probate process, some jurisdictions have a simplified probate proceeding. However, this can still be a time consuming and public proceeding.

Not every asset goes through the probate process. Anything owned solely by the deceased, like a home or vehicle, will be subject to probate. Any asset that has a surviving co-owner or beneficiary designation will transfer to the named individual automatically upon your death. Property held in a living trust is also exempt from the probate process because the assets are deemed to be owned by the trust, not you.

Avoiding Probate

Probating a will can be stressful. In the days and weeks following the loss of a loved one, the last thing family members want is a legal battle for their inheritance. In especially large estates, property may need to be professionally appraised and inventoried. Debts and taxes will also need to be paid before the estate can be fully settled. The attorneys who handle these tasks will also take a chunk of the money for their involvement in the administration of the estate. Also, since probate is a matter of public record, there is a lack of privacy to consider. It’s no wonder so many people hope to avoid probate altogether.

One of the most common ways to avoid probate is to use a revocable living trust to protect your assets. In order for the trust to keep your assets out of probate, the assets have to be funded into the trust while you are alive. Failure to complete this step will lead your family to probate court, even if it is just to have the assets transferred to the trust.

If you have successfully funded your trust, your assets will be administered as you have directed in your trust once you pass away, without court involvement. The result is the transfer of your assets easily, timely, and privately.

If you have questions about funding your trust, please give us a call. We can review your assets and ensure that everything is in place so your family can have a smooth administration, without court involvement. When it comes to the future, leave nothing to chance.

The post My Trust is Signed, No Probate for My Family, Right? appeared first on Loevin Law Group.

For those not familiar with the term, probate refers to the legal process required to distribute the assets of the deceased. During the probate process, a representative is authorized to pay debts and distribute assets on behalf of the deceased. In probate, there are different routes: informal probate or formal probate.

Probate isn’t always necessary. If the deceased’s assets were properly funded into a living trust so that he or she died without any assets in their individual name, a trustee can distribute assets accordingly without probate and court involvement. This is the preferred route for many individuals, as the formal probate process comes with some downsides. Probate is a matter of public record, so if you’re especially private, seeing your family’s affairs publicized can be frustrating. The process can also be lengthy, with many months passing before the court approves the final distribution of assets. Expensive, time-consuming, and potentially public, it’s no wonder probate has earned such a bad rap.

However, for some decedents and their families, formal probate can be incredibly helpful. If the decedent had a lot of outstanding debts at the time of death, a formal court proceeding with oversight of the personal representative and supervision of all probate proceedings by a judge is a great way to get a final ruling by a judge that all debts have been satisfied. Formal probate can also be helpful if there is the anticipation of family conflict. Having a neutral third party overseeing the proceedings and the actions of the appointed personal representative can give family members peace of mind that everything will be conducted in an honest and legal way.

Informal probate is an option worth considering if your situation allows for it. Usually a quicker process than the formal version, informal probate involves less paperwork and is often more affordable for the client. In some cases, court appearances are unnecessary during informal probate, saving families valuable time and money.

The differences between the two forms of probate are not as vast as you might expect. There is still court oversight with informal probate, and the paperwork that is filed with the probate court is still considered part of the public record. However, some individuals may prefer formal probate, especially if they anticipate conflict between heirs or if the decedent had significant creditors. Court supervision can be incredibly helpful in such cases.

Understanding the role of probate and the difference between informal and formal probate is critical to the estate planning process. Talk with your loved ones about your hopes for the future. Make plans to ensure your wishes are respected with the help of an estate planning attorney. It’s the best way to protect your family, friends and all you’ve worked towards.

The post Informal Probate Can’t Be As Bad As Formal Probate, Right? appeared first on Loevin Law Group.

Primary Residence

Because of the special tax treatment a primary residence receives, you need to very carefully consider how your home is owned. In applicable states, “tenancy by the entirety” offers married couples creditor protection from the creditors of one of the spouses (with a possible exception for federal tax liens) while still preserving relevant tax benefits. It also allows the automatic transfer of ownership to the surviving spouse upon the death of the first spouse, without court involvement. Transferring ownership of the primary residence to a joint revocable trust may also be an option if you live in a state that allows the tenancy of the entireties protection to transfer to a joint revocable trust. Ownership by the trust also means that the real estate will not go through the lengthy, expensive, and public probate process but will instead be handled according to your wishes as specified in the trust document.

If you are single, owning the property in your sole name allows you to take advantage of tax benefits for primary residences. Similarly, transferring ownership to a revocable living trust may also allow you to retain the applicable tax benefits with the added benefit of avoiding the probate process. If asset protection is a major concern during your lifetime, certain types of irrevocable trusts are best suited for your needs but may require you to give up some control of the property.

Also note that the bankruptcy code may provide additional protections for a primary residence (i.e. your state may have a “homestead” exemption). However, in some states, transferring your primary residence to a trust may eliminate the homestead exemption because the trust will be deemed to be the owner of the residence rather than the debtor. If this situation could apply to you, it is important that you meet with a knowledgeable estate planning attorney before making any transfers of your primary residence to a trust.

Vacation Home

For some families, the vacation home has high monetary value, but also significant emotional value as well. Ownership of a vacation home by a trust or limited liability company (LLC) can be advantageous because it addresses two main priorities: ease of transfer to the next generation and asset protection.

With a trust or LLC, you are able to determine a set of rules for how the property is to be used and maintained, as well as designate what is to happen to the vacation home once you pass away. This can be a great solution if you want to ensure that the vacation home stays in the family for generations with minimal family conflicts.

An additional benefit of having an LLC own the vacation home is that it provides limited liability from outside claims. If a judgment is entered against the LLC, the creditor is limited to the assets of the LLC to satisfy its claims, not your personal assets or those of the other members. Also, if you or another member have a judgment entered against you for a claim unrelated to the LLC, it will be harder for a creditor to force a sale of the vacation home. This can be incredibly helpful if you wish to pass on the vacation home to the next generation without having to worry about the individual financial situation of each of the new members.

Note: In some states, single member LLCs (an LLC in which you are the only member) do not enjoy the same protection from your personal creditors. The rationale of these laws is that your creditors should be able to seek relief through your LLC interests to satisfy their claims because there are no other members that will be negatively impacted their seizure of money and property owned by the LLC.

If the vacation home has been in the family for many years, it is important to consult with us and your tax advisor to make sure that transferring your vacation home to a trust or LLC will not cause an increase in your property taxes or other unintended consequences.

Rental Property

As a stream of income, instead of a residence, the bigger concern with rental property is usually asset protection. Because the occupants of the rental property can change over time, as a landlord and owner of rental property, there is a higher probability of lawsuits arising in connection with it. For rental property, transferring ownership to an LLC is a great option. If a renter gets injured on the property, sues the LLC that owns the property, and obtains a judgment that exceeds any property insurance you have, the renter can only go after the assets owned by the LLC, not your personal assets or those of any other owners of the LLC, to satisfy any claims.

In addition, ownership by the LLC may protect the rental property from your personal creditors. However, if you are forming a single member LLC, it is important to have us check state law to make sure creditor protection is available.

Give Us a Call Today!

Whether you are concerned about your primary residence, family cabin, or rental property, we are here to assist you in protecting this valuable asset. Due to the various considerations for selecting a form of ownership, it is important to have the right advisors helping you along the way. Give us a call so we can discuss your current and future real estate ventures and the best way to protect them for generations to come. To schedule a consultation with an experienced Florida Real Estate Law attorney, please call (954)- 317-1742 or send your request through the Contact US on the right-hand portion of this page.

The post How to Own Your Real Estate appeared first on Loevin Law Group.

5 Reasons Probate Takes So Long

There are many reasons why probating a will takes so long. Here are five of the most common: 

1. Paperwork. Managing probate required paperwork can be a monumental undertaking with structured timelines and court-imposed deadlines.

• Complexity. Estates with numerous or complicated assets simply take longer to probate as there are more items to be accounted for and valued.

• Probate court caseload. Most probate courts are dealing with high caseloads and limited staff. 

• Challenges to the will. Heirs, beneficiaries, and those, who thought they’d be beneficiaries, can object to and challenge the will’s terms and legality. While state law dictates how long they have to object, will challenges can add years to the process.  Common challenges include that the testator was:

• Lacking testamentary capacity
• Delusional
• Subject to undue influence
• A victim of fraud

• Creditor Notification. A will’s executor must notify the decedent’s creditors so they have time to submit claims for debts. This time period varies from state to state as well, but it is generally six to nine months.

The bottom line is that, while most state probate laws are designed to keep the process moving along in a timely manner, that’s more of a plan than a reality. 

Simply Put, Avoiding Probate with a Trust Is Better

Simply put, having assets in a trust is better. Administration generally only takes six to eight months total – meaning that the process is not tied up in court, beneficiaries get assets faster, costs are reduced, and stress levels are kept to a minimum.  

Take Action Now

First, if you need help settling a probate estate, we can help you move the process along and remove some of the burden so you can move on with your life. Second, we can help you make sure you never burden your loved ones the way you’ve been burden. How? We’ll show you how to avoid probate with a trust.

The post HELP! This Probate Is Taking Forever!!! appeared first on Loevin Law Group.

Most Americans do not have a simple will as part of their estate plan. You might believe that a will is only for the rich and famous, and not the average person who has a far smaller net worth. On the other hand, you may think that a will is entirely unnecessary since you have a trust, jointly owned property, or have named beneficiaries on your insurance.

So, do you really need a will? The short answer to this question is “yes.” In fact, everyone who owns anything – no matter how little value it may seem to have – should have a will. This is because a will puts you in charge of directing others on your wishes and distribution of assets upon your death. Without a will or other estate plan – referred to as intestacy – you have no control and your state’s rules determine who gets what after your death. Even if you have a trust, jointly owned property, or have named beneficiaries on your insurance, a will is an important, even as just a “backup” plan.

As a practical matter, the simpler your affairs are – typically, the fewer assets you own – the less complicated your will and overall estate plan is going to be. Surprisingly to most, it does not take much to complicate your estate. For example, if you have minor children your will must name a guardian for those children in the event of your death. Likewise, if you have a relative who is disabled, elderly or without the financial sophistication to manage your assets after your death, a will allows you to name someone to watch over these assets for your loved ones in a special needs or supplemental needs trust. And, these are just two examples of the many things that can complicate your affairs and your estate plan.

Many people believe if they have made beneficiary designations on life insurance policies, property deeds or retirement accounts that a will is not necessary at all.  While it is true that those particular designations will ensure the right people you elected will receive benefits or inherit those assets, the distribution stops there. If there are other assets that you own – such as a car, a china set, or jewelry to name a few – or if you would like to give part of your estate to a charitable organization, a will is essential to your estate planning needs.

Furthermore, when a person dies without a will (referred to as intestate), the estate goes into probate. Probate is a judicial proceeding by which the court decides the rightful heirs and distribution of assets of a deceased. Going through probate can be both more time consuming and expensive without a will than it is with a will. This is because your will can waive certain probate requirements (like having the executor post a bond or obtain judicial approval to have an estate sale). At the same time, probate without a will follows the governing state’s intestacy laws which may likely result in a less-than-perfect split of assets that not only may not be in line with the deceased’s wishes but may leave many surviving loved ones unhappy. Consequently, for many reasons the creation of a will can fill in gaps of property assignment or plug holes in beneficiary claims on life or other insurance policies.

Family dynamics also play a part in estate planning, something state intestacy laws do not account for. Many people have blended families. There may have been second or third marriages. Older couples may choose to cohabitate after a death or divorce and never legally get married. You may have to treat your children differently on current accounts due to distance, and without a will, those assets will not be distributed fairly.

It is important to note that a will can also include a no contest clause, reducing the likelihood that potential heirs from arguing over its contents, something that simply isn’t possible if you don’t make a will.

Creating a will as part of your estate plan is primarily about passing your wealth to your loved ones after you die since a will only “works” after it’s gone through the probate court process. It really is about giving you both independence and control of what happens to your assets after your death. Instead of leaving the distribution of your property to local intestacy laws, a will can put your wishes down on paper and direct a selected person to carry out your desires exactly as expressed. Look for our post next week to learn more about another, more comprehensive strategy, the revocable living trust.

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Living Will

A living will sets forth your wishes for what medical treatments you do or do not want; it eases the burden on loved ones who may otherwise have to guess at your preferences. This document may contain “do not resuscitate” (DNR) or “do not intubate” (DNI) orders, or those directives may be contained in a separate standalone document.

Power of Attorney for Healthcare

A power of attorney for healthcare designates a person or persons to make healthcare decisions on your behalf when you are not able to. Discuss your views on medical treatments and life-saving measures with these individuals and any loved ones, so they fully understand the decisions you may be asking them to make.

Financial Power of Attorney

A financial power of attorney authorizes the named individual to carry out certain financial matters on your behalf. Be advised that your bank or investment institution may have their own separate, required forms. If so, you will need to complete this paperwork as well.

Will

In the simplest terms, a will is a statement directing how you want your assets handled when you die. You will need to designate a personal representative to execute the instructions in your will and identify assets and their recipients. Homes, cars, and financial accounts are some of the assets you will need to address. Make sure to account for digital assets like email, social media accounts, or online trading accounts and cryptocurrency. Some states allow for the inclusion of a personal property memorandum that lists your personal possessions and designates the recipients. One benefit of this memorandum is that you can update this document without having to return to your attorney to change your will. 

A will can also name a guardian for your minor children. Without this document in place, a judge may determine who cares for your children after you pass. According to Caring.com, only 36 percent of parents with minor children have a will.

Trust

A trust is a mechanism that allows you to pass assets to a beneficiary and avoid the probate process. It also allows for the management of your assets while you are incapacitated. This tool allows you to control who receives your assets as well as when your beneficiaries can access assets. A third party, known as a trustee, manages the assets on your behalf.

In addition to making sure you have the basic estate planning documents prepared, there are a few other steps you can take to ensure that your family’s future will be secure.

• Consider drafting a separate letter detailing any specific wishes for raising your children. This can allow you the opportunity to share the hopes and dreams that you have for your children and offer guidance about any assets that are left to them.
• Gather important documents. Distribute copies to trusted loved ones and your attorney. Important documents may include: your social security card, birth certificate, tax returns, insurance policies (life, health, car, home), bank accounts, mortgage agreement, car title, pension and retirement plans, property titles or deeds, will, trust, investment portfolios, advance directives, contact information for estate planning attorney and accountant, marriage certificate, and utility account information.
• Do not overlook planning for digital assets. Digital assets like email, Amazon, PayPal, social media accounts or a business website all have different policies on how they handle accounts after death. 
• Consider making funeral or memorial plans ahead of time and accounting for the costs, since funerals can be expensive.
• Check beneficiaries on retirement plans and insurance policies. These assets have designated beneficiaries, and they are generally not transferred through a will or trust, so ensure your beneficiary designations accurately reflect your intentions.

Facing a chronic or terminal illness diagnosis is overwhelming. We are here to help you reclaim control by assisting you in carefully crafting an estate plan. These efforts will help to ensure that people follow your intentions and to lighten the load on your loved ones.

The post What to Do When Your Doctor Says to “Get Your Affairs in Order” appeared first on Loevin Law Group.

One of the primary advantages of having a trust is that it provides the ability to bypass the publicity, time, and expense of probate. Probate is the legal process by which a court decides the rightful heirs and distribution of assets of a deceased through the administration of the estate. This process can easily cost thousands of dollars and take several months to more than a year to resolve. Or course, not all assets are subject to probate. Some exemptions include jointly owned assets with rights of survivorship as well as assets with designated beneficiaries (such as life insurance, annuities, and retirement accounts) and payable upon death or transfer on death accounts. But joint tenancy and designating beneficiaries don’t provide the ability for someone you trust to manage your property if you’re unable to do so, so they are an incomplete solution. And having a will does not avoid probate.

Of note, if your probate estate is small enough – or it is going to a surviving spouse or domestic partner – you may qualify for a simplified probate process in your state, although this is highly dependent on the state where you live and own property. In general, if your assets are worth $100,000 or more, you will likely not qualify for simplified probate and should strongly consider creating a trust. Considering the cost of probate should also be a factor in your estate planning as creating a trust can save you both time and money in the long run. Moreover, if you own property in another state or country, the probate process will be even more complicated because your family may face multiple probate cases after your death, one in each state where you owned property – even if you have a will. Beyond the cost and time of probate, this court proceeding that includes your financial life and last wishes is public record. A trust, on the other hand, creates privacy for your personal matters as your heirs would not be made aware of the distribution of your assets knowledge of which may cause conflicts or even legal challenges.

A common reason to create a trust is to provide ongoing financial support for a child or another loved one who may not ever be able to manage these assets on their own. Through a trust, you can designate someone to manage the assets and distribute them to your heirs under the terms you provide. Giving an inheritance to an heir directly and all at once may have unanticipated ancillary effects, such as disqualifying them from receiving some form of government benefits, enabling and funding an addiction, or encouraging irresponsible behavior that you don’t find desirable. A trust can also come with conditions that must be met for the person to receive the benefit of the gift. Furthermore, if you ever become incapacitated your successor trustee – the person you name in the document to take over after you pass away – can step in and manage the trust’s assets, helping you avoid a guardianship or conservatorship (sometimes called “living” probate). This protection can be essential in an emergency or in the event you succumb to a serious, chronic illness. Unlike a will, a trust can protect against court interference or control while you are alive and after your death.

Trusts are not simply just about avoiding probate. Creating a trust can give you privacy, provide ongoing financial support for loved ones, and protect you and your property if you are unable to manage your own assets. Simply put, the creation of a trust puts you in the driver’s seat when it comes to your assets and your wishes as opposed to leaving this critical life decision to others, like a judge. To learn more about trusts – and estate planning in general, including which type of plan best fits your needs – contact us today.

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