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Living trusts explained: what are they and do you need one?

On Behalf of | Jan 21, 2025 | Estate Planning |

When planning your estate, you might consider various options to ensure your assets are managed according to your wishes. A living trust is popular for many individuals seeking control and flexibility. Understanding what a living trust is and its benefits can help you decide if it is the right tool for your estate planning needs.

What is a living trust?

A living trust (also known as a revocable trust) is a legal document that places your assets into a trust for your benefit while you are alive and specifies its distribution upon death. As the creator, you usually serve as the trustee, retaining asset control. You can change or revoke the trust anytime, which provides flexibility as your circumstances evolve. This setup differs from a will, which only takes effect after death.

Benefits and reasons to consider a living trust

Living trusts offer several advantages. One of the main benefits is probate avoidance. In Washington state, probate can be a lengthy and public process. By placing assets in a living trust, you ensure they pass directly to beneficiaries without going through probate, saving time and maintaining privacy.

Additionally, a living trust allows for the seamless management of your assets if you become incapacitated. The successor trustee you appoint can manage your affairs without needing a court-appointed guardian. This feature provides peace of mind and continuity in asset management.

Is a living trust right for you?

Deciding whether to create a living trust depends on your circumstances. A living trust could be beneficial if you have significant assets or wish to avoid probate. It offers control, flexibility and privacy that a will alone might not provide.

However, you may want to seek help from a legal professional who can tailor your estate plan to your specific needs and ensure compliance with Washington state laws. By understanding your options, you can make informed decisions about protecting your legacy and providing for your loved ones.

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