I must say that estate planning could not have been an easy process at all, but for the existence of an estate planning living trust. An estate planning living trust is an arrangement created which is meant to allow a trustee, instead of an individual, to hold legal title to the assets of another person.
It is possible for a person who is creating an estate planning living trust for their property, to keep control of their property until a subsequent trustee is chosen. Estate planning living trust is a vital tool that can be used to secure assets for beneficiaries. I mean that, with a proper estate planning living trust, assets are held under a governing person called a trustee and the assets can be transferred to a subsequent trustee in the future.
An estate planning living trust can help individuals who create it to avoid probate court once they die and pass on assets to their beneficiaries. When assets of an estate are made to go through a probate if a will is used instead of an estate planning living trust, it often takes a couple of months for the beneficiaries to see any of the money.
As the will is probated, debts are paid off first before anything that is left is given to the beneficiaries. Since the creditors are given enough time to come forward, the court is required to wait before they disperse any assets that are left until the time is up for the creditors to get paid from the estate.
Once an estate planning living trust is made, all assets that are transferred to a trust are named to them. For example, if a person decides to put their house into a trust before they pass on, the deed must name the living trust as the owner. In the same vein, any bank accounts that are transferred to the trust must be changed to reflect the name of the trust, and not the name of the person funding the trust.
In addition, it is the duty of the trustee to disperse the property in the estate planning living trust. Whoever has been named as the successor trustee in the document, I mean the person who handles the property after the original owner dies, transfers the assets to the beneficiaries named in the estate planning living trust by the original trustee.
The heirs only need to wait a few weeks for them to receive their inheritances as against months in the case of a probate court. Once the beneficiaries receive the assets from the trust, the trust no longer exists.