Living Trusts ExplainedA living trust (also known as a revocable trust), is a type of trust that is established during the life of the trustor (the person who creates the trust, also called a grantor or settlor). It can be changed, modified, or even revoked at the discretion of the trustor. One of the biggest advantages to having a living trust is to avoid going through the probate process. Here are a few other things to keep in mind about a living trust:

  • As mentioned above, a major benefit to a living trust is that the property that is in the trust does not go through probate. This is because, once the trustor dies, the trustee simply transfers ownership of the trust property to the beneficiary or beneficiaries. No probate is necessary.
  • A living trust is more expensive at the onset than a basic will; however, it could save you more money in the long-run. A living trust is generally a complicated legal document that needs to be drafted in conjunction with an experienced estate planning attorney, so there will be legal fees. However, the fact that probate will be avoided means no probate fees will have to be subtracted from the trust assets. Furthermore, if someone comes forward after your death to contest the distribution of your assets, a living trust will almost certainly hold up better than a will.
  • A living trust provides you and your family with privacy regarding your affairs. A living trust is not made public after your death, and all distribution of assets remain private. A will on the other hand is part of the public record, and all distributions made in a will are subject to public scrutiny as well.
  • A living trust can also provide a great deal of security and peace of mind to the trustor. Having a living trust means knowing that your assets and heirs are protected in the event you become incapacitated or otherwise unable to manage your financial affairs.

Glenn Matecun is proud to help the people of Michigan with their estate planning needs. We have offices in Howell and Clinton Township. Visit our website to learn more and schedule a consultation.

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