Review these advantages of establishing a Living Trust.
Living Trusts are trusts created while you are alive. The most popular type of living trust is a revocable living trust, which is an agreement that can be terminated or revoked at any time. The person creating the trust, the grantor, manages the trust during his or her lifetime, unless the grantor becomes incapacitated, for the grantor’s benefit. Advantages to a revocable living trust include:
- Avoid probate in resident state. If you own property in another state, avoid probate in other state.
- Hold your assets in trust for minor children until children are a certain age. Phase distribution of assets.
- May reduce estate taxes.
- Name persons to manage trust in the event of incapacity.