A Phoenix living trust, also referred to as a revocable living trust, is a document that designates the responsibility of your property or other major assets to a specific individual to manage. It is something that you create while you are living and as long as you remain mentally stable, competent and in control of your faculties, you are able to change the trust or even dissolve it at your will. In fact, it doesn’t become unchangeable in most cases until you pass away. However, it helps to know as much as possible about them, so you are informed as to how they work. Consider four important factors that you should know about a living trust:

 

There are three people involved in the process: There is the creator of the trust; the trustee, which is the person appointed to manage it (which could still be you); and the beneficiary, which is the person that benefits the trust upon your passing. In fact, many people do name themselves or their spouse as the trustee as they want to control their assets while they are still alive. This gives you the control over selling the assets within the confines of the trust as well as the control to make investment decisions, as well.

 

A living trust is different from a traditional will: A traditional will lays out what you want to happen with your estate and in what way. A Phoenix living trust is specific to major assets, such as property. Both are legally binding, but anything included in a will document must pass through the legal process of probate; a living trust helps to avoid this time consuming and often costly process.

 

If you don’t have a living trust, it may take quite a bit of time and money to get your property through probate: This is the very thing that most people try to avoid by generating a living trust and is the major benefit of this document.

 

A Phoenix living trust can be challenged just like any other element of an estate planning toolkit: Just as a traditional will can be challenged, a living trust can, as well. Keep this in mind when you are planning this document and incorporating those individual(s) that you want to include as beneficiaries of your living trust and your estate in general. This document does not guard against those relatives that feel left out of the process.

“by Kandice Linwright” at Google

Summary:

A living trust, also referred to as a revocable living trust, is a document that designates the responsibility of your property or other major assets to a specific individual to manage. It is something that you create while you are living and as long as you remain mentally stable, competent and in control of your faculties, you are able to change the trust or even dissolve it at your will.

A living trust is specific to major assets, such as property. Both are legally binding, but anything included in a will document must pass through the legal process of probate; a living trust helps to avoid this time consuming and often costly process.

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