A living trust is plainly a contract—either between yourself if you are a single person or with your spouse or partner, which should be designed to secure your future and that of your loved ones.
Establishing an estate plan can include the creation of a trust. The living trust of Washington State is a document made by a trustor (also known as a grantor); for instance, you. You can make either irrevocable or revocable trust in Washington State,
Even though this blog is more focused on revocable, the trustee will transfer the property’s ownership into the trust. For instance, it could include the trust in the deed of your home. If you have a revocable living trust, the trustee is the beneficiary in their lifetime. However, the trustor’s family members or others are the possible beneficiaries upon their death. A trustee handles the trust to the benefit of named beneficiaries.
Revocable Living Trusts
If you have a revocable trust in Washington State, the trustor can modify their trusts at any time throughout their lifetime. That could include adding or removing assets, changing beneficiary designations, and even dissolving the trust if you decide to so. A living trust is used to store your assets in a trust like you. The trustee manages and uses these assets. In many cases, the trustor can act as trustee for the trust throughout their entire life, as they are in capacity.
Advantages of a Revocable Living Trust
Living trusts in Washington state offer the trustee numerous advantages. In contrast, it might appear complex at first after implementation. The trust functions in the capacity of a security tool that holds all your assets and property in one place.
Control and Flexibility
The primary benefits of living trusts are the flexibility they provide you throughout your life.
Throughout your lifetime, it is possible that revocable living trust gives you full control over your property and assets. Additionally, even after your death, you keep control over your assets. The trustee named as successor to your trust must carry the instructions set forth by the trust document.
As the trustee of your trust, you will be able to decide the distribution method in the course of. For instance, trust can keep the property in trust for the benefit of a child until they reach maturity, or even until the child has reached middle age or even beyond! There is also the option to gradually distribute the proceeds to beneficiaries so that they do not receive a massive distribution in one go. For instance, you could opt to have your children receive distributions outright at the ages of 35, 40, and 45 to ensure they can use their inheritance wisely instead of spending it on unnecessary expenses.
The key benefit that living trusts provide is the security they provide. The trust terms, beneficiaries, and the properties within your trust aren’t legally required to be public. Probate, however, requires a will to be recorded as a public record, including distributions that go to your heirs and the names of their beneficiaries. A lot of people choose to have living trusts for the same reason!
Keep Away from Probate
While the Washington State probate administration operates more efficiently than other states, an accurately funded living trust also avoids probate. Probate can be expensive and can take months to finish. The court is responsible for the complete distribution of the estate. This means that it is important to note that the transfer of your estate will take place only after the conclusion of the probate process, which is, for Washington State, takes a nearly minimum of four months time frame. While not too difficult in Washington probate, it’s not a pleasurable or speedy process.
A living trust can also protect you if you die or lose your capacity to make legal decisions. Suppose that happens without the trust (or power of attorney documents). In that case, your family members are forced to appear in court and request guardianship to handle your medical or financial affairs. However, if the entirety of your wealth and assets are in your living trust, your appointed trustee will be in a position to oversee your assets, and a custodian wouldn’t be necessary.
Numerous elements impact whether the living trust is suitable for you, not least the complex tax planning and distribution guidelines different for every client. The adage “you don’t know what you don’t know” has never been applicable more so than with the living trust. That is why seeking legal guidance from an experienced estate planning lawyer is important. Therefore, if you’re facing a legal issue in your family that requires a rational approach, schedule your Initial Consultation to speak with an experienced family law attorney to discuss if living trusts are right for you.
We’ll provide an in-depth analysis of your estate and assist you in developing an estate plan that is precise and fully outlines your desires.
Since there are so many benefits and peace of mind to hiring a lawyer,
Cowlitz Group, We Know how to negotiate your case. Client Champion Award – 2022 by Martindale Hubble, Need Legal Advice? If you want to know more about this topic, schedule your Initial Consultation with us.Contact us today at (360) 597-7585.