Many people are interested in living trusts because they want to avoid the probate process and establish some type of asset protection. However, a major concern most people have about a living trust is whether they will lose control of their assets. The answer is a resounding no. One of the best features of a living trust is the fact that you continue to control your assets for as long as you want and are able to do so.
What is a living trust in Fayetteville?
A living trust in Fayetteville is a legal instrument that creates a revocable trust which holds the assets you choose during your lifetime and provides continuing management in the event you become incapacitated. Like a will, a trust can also provide instructions for the disposition of your property after your death.
With a trust, you can choose your trustee to manage the assets if you are ever deemed incompetent to do so on your own. That way you will not need to have a guardian appointed to handle your affairs with regards to the assets in the trust. These assets will transfer to the beneficiaries you designate without having to go through the probate process. Also, your affairs will remain private because the terms of the trust and the nature of the assets are confidential.
Can I change the terms of my trust?
Not only can the terms be changed, but it is a good idea to review the terms periodically to determine what changes should be made. Changes in terms are usually necessary to account for changes in family situations such as divorce, death or birth. Like a will, the terms of a living trust can be amended as long as you have the capacity to do so.
Also, there is no penalty for amending or revoking the trust. There are no complications. And if you move to a different state your trust remains valid, because living trusts are valid in all fifty states, regardless of where the trust was originally created.
Who actually controls the assets in my living trust?
You can name anyone you choose to be your trustee, including yourself. In that situation, you retain complete control of the terms and assets in the trust. An important benefit of a revocable living trust is that you can continue to sell or buy assets as you have before. You also have the ability to remove assets from the trust whenever you choose. You maintain complete control.
As long as you are competent to handle your financial affairs, you can be named as the trustee of your own trust. In fact, that is most commonly what people choose to do. If you are married, you can also name your spouse as co-trustee, if you desire.
Setting up a revocable living trust is simply transferring title of your assets from you, as an individual, to you as the trustee of your trust. You will be managing the assets you place in the trust on behalf of the trust beneficiary, which is yourself. If you have any questions regarding Revocable Living Trusts in Fayetteville, Arkansas, we will be happy to assist you.