why should i use a living trust

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

WHY SHOULD I USE A LIVING

TRUST?


DON'T MAKE ASSUMPTIONS


People often make assumptions about estate planning that are

not accurate.


One of them is the notion that you cannot benefit from a trust if you are not extraordinarily wealthy.


This is really not the case.


AN EFFECTIVE ESTATE PLANNING TOOL


There is a type of trust that can be useful for reasonably successful people who are not among the

financial elite.


This would be the revocable living trust.


NO WORRIES

Another misconception that people sometimes entertain is the idea that you lose all control of

assets that you convey into a trust.


For this reason, they shy away from the possibility of trust creation.


In fact, you maintain full control of assets that you convey into a

revocable living trust.


You can act as the trustee and the beneficiary, and you can revoke the trust entirely if you ever choose to

do so.


INCAPACITY


A significant percentage of elders become unable to handle their own

finances at some point in time.


Incapacity can strike as a result of various different causes, but

Alzheimer's disease is very common among the oldest old.


When you have a living trust, you could empower a disability trustee

to manage the trust if you ever become incapacitated.


SUCCESSORS

As we have stated, you can act as the trustee and the beneficiary while you are

alive and well.


Ultimately, you want the assets in the trust to go to your heirs after

your passing.


In the trust declaration, you name a successor trustee to administer the

trust after you are gone.


You also name successor beneficiaries.


SELECTING A TRUSTEE


You may naturally assume that you should name someone that you know personally to act as the trustee after you pass away.


This is perfectly allowable, but many people will use a corporate

trustee.


Banks and trust companies offer trust administration services, and this is an option that is available

to you.


DISTRIBUTIONS


You control the nature of the distributions that will go to the beneficiaries after your death.


If you want to, you can have the trustee distribute limited ongoing

income over an extended period of time.


This would prevent your loved ones from spending their inheritances

too quickly.


ASSET PROTECTION


While you are alive, assets in a living trust would not be protected

from creditors or litigants.


However, after you die, the trust would become irrevocable.


You could include a spendthrift provision, and there would be a level of asset protection for the

successor beneficiaries.


ARE YOU READY TO TAKE ACTION?


If you are interested in the possibility of creating a living trust,

our firm can help.


Give us a call or send us a message through our website if you would

like to set up a consultation.


Or visit our website www.sinclairprosserlaw.com

Nicole Livingston

Jon J. Gasior

Colleen SinclairProsser

Victor A. Lembo

Law