Arranging a family trust is extremely beneficial in estate planning. Also referred as a living trust, this method requires individuals to transfer ownership of property by avoiding probate and accelerate real estate reconciliation.
While the process of arranging a family trust is fairly simple, it’s advisable that you speak with an estate lawyer. Oftentimes people are unsure of the legal language contained in the documentation and the uncertainty as to how to go funding the trust. Working with a experienced law firm can simplify the entire process.
One of the top reasons for arranging a family trust is to avoid the probate process and simplify the estate settlement procedures. Probate is necessary in the United States to record the transfer of decedents’ property and eliminate any debts.
Probate is notorious for taking numerous months to resolve. It is common for family conflicts to erupt which can result in family members disputing last wills and testaments. When this happens, probate can last for many months. This can result in heirs losing part or most of their inheritance.
The best method for avoiding family turmoil and to eliminate the possibility of having the Will contested is by establishing a trust. When property is transferred, it is no longer owned by that individual. Instead, it owned by the trust and exempt from probate.
Funding trusts involves acquiring new property titles. This may consist of acquiring new titles for real estate, automobiles, and vehicles in addition to switching possession of bank accounts. Switching bank holdings and obtaining new titles is not a difficult process, but it can be time-consuming. Specified documentation have to be recorded to guarantee the trust is funded properly.
Married couples often have family trust to retain control of their property either independently or together, letting each person assume the duty of Trustee when their partner passes away. This clearly shows the importance of a family trust.
Family trust offers a wide range of advantages to all individuals involved. They provide that extra layer of protection that cannot be attained from executing a Will. Additionally, transferring property to a family trust is one of the best methods for preventing probate.