Creating a living trust is recommended if you want to protect your assets in the future. This legal document is a revocable living trust. Its main purpose is to place your bank account, real estate, and other assets under protection in order for them to be preserved for you and your beneficiaries. If you are looking for more information about living trusts, you have come to the right place.
What Is A Living Trust?
A living trust is designed to protect all your assets. A revocable living trust is the most common type of living trust. You have the option to remove the trust whenever you want. At present, you would be the trustee as you are alive. This means that you would have complete control over assets and would be able to shift assets in and out. You must name a successor trustee who would be responsible for managing the trust if you die. Similarly, the successor trustee would also make decisions on your behalf if you become incapacitated. Hence, you need to learn more about living trusts before you get one notarized.
When Do You Require A Living Trust?
A living trust may be needed in various situations. A major reason why you might want to create a living trust is to avoid probate court. Although probate court varies depending on the situation, it would prove costly. For instance, dividing up the assets would require up to 10% of their value being spent. Moreover, it usually takes a long time to complete the process defined by the probate court. This is why it makes sense to opt for a living trust as it bypasses these issues. Besides, it also offers privacy.
For instance, a living trust will be specified and relevant parties can analyze it to ensure that everything is followed in accordance with your requirements. The probate court can also view it. Living trusts tend to be private and bypass obstacles. In fact, they cannot be easily challenged. Despite the fact that there are many ways for avoiding probate court, a living trust is possibly the easiest option.
Do You Need To Notarize A Living Trust?
A living trust needs to be notarized in certain situations. If you want to make sure that the living trust is legally binding, you would have to get it notarized. Although you should review the state regulations, the notary is responsible for verifying the identities of the parties. Moreover, the notary would also verify whether the information mentioned is correct or not. This adds an additional layer of protection for preventing anyone from misusing your identity or assets.
How You Can Prepare For A Living Trust?
If you need to create a living trust, you must work with an attorney who can help you out. It is important that you keep in mind that every state has different laws in place. This is why it makes sense to seek the assistance of someone who knows about the process.
Your lawyer should explain how a trust works. He or she would also review your assets and ask you about who would govern your trust. Besides this, you would also have to let the lawyer know who would manage the trust if you pass away or become incapacitated. You must carefully think about who would make the perfect person for managing the assets. Lastly, you must get the living trust notarized in order for it to be legally enforceable.
How You Can Notarize A Living Trust Online?
Instead of wasting a ton of time trying to locate a notary public who can notarize your living trust, you can simply rely on an online notarization service such as Blue Notary to save time and money. In fact, you will be relieved to know just how easy it is to use the service. All you need to do is follow the steps mentioned below.
- Firstly, you need to go through the appointment times that are available and choose one that suits you.
- Next, you would get an email confirming your appointment. You will need to go through the email and choose the link for uploading documents.
- In order to prove your identity, you would be required to answer some questions.
- Lastly, you will need to attend the appointment and the notary will explain the process to you.
- After the appointment comes to an end, the notary would sign the document and place his or her seal. Then, you can download the notarized living trust.
General Questions About Living Trusts
Differences between a revocable and an irrevocable living trust, and under what circumstances might one be preferred over the other?
A revocable living trust allows amendments or revocation during the grantor’s lifetime, offering flexibility to adjust terms. An irrevocable trust, once established, cannot be altered, providing stronger protection against creditors’ legal judgments, and potential tax benefits. The choice depends on priorities: flexibility and control (revocable) or asset protection and tax benefits (irrevocable).
Can you detail the process and implications of transferring different types of assets into a living trust?
The process varies by asset type, involving deeds for real estate, change of ownership or beneficiary forms for financial accounts, and general assignments for tangible personal property. Each transfer has considerations and tax implications, requiring careful handling to align with estate planning goals and comply with laws.
How does a living trust protect against incapacity? What are the steps for activating a successor trustee’s control in such situations?
Living trusts protect against incapacity by outlining criteria for determining incapacity and the process for successor trustees to assume control. This typically involves a declaration of incapacity by licensed physicians. Successor trustees can then manage trust assets seamlessly, without court intervention, ensuring a smooth transition compared to other arrangements like durable power of attorney.
