A living trust may also be referred to as a revocable trust. This means that you can cancel it or change it and update it over the course of your lifetime. For example, you may wish to change the beneficiaries or the trustees as your life goes on. It is also effective during your lifetime, meaning that you are eligible to transfer your assets into the trust for your individual benefit during your lifetime, even in situations when you are incapacitated.
There are five key things you need to keep in mind about living trusts if you intend to use these documents. First of all, you’ll need to select a trustee who will manage the trust according to your instructions. A successor trustee should also be named. Consider using a pour-over will as well, in the event that your goal is to avoid probate. A living trust works only if all the assets are in trust when you pass away. A pour-over will can help to assist with any assets that you didn’t transfer into the trust over your lifetime. The third thing to remember is that it is worthwhile to transfer all probate assets into the trust.
Usually a letter of instruction is the most basic tool to accomplish this. Furthermore, the last two tips for a living trust are to use powers of attorney. A financial power of attorney will allow another person to make investment, financial and tax decisions on your behalf. Whereas, a healthcare power of attorney will allow someone else to make mental or medical health care decisions for you. This also includes the potential for the agent to stop or reject any medical service such as life sustaining procedures.
Ready to talk more about living trusts? It’s a good idea to work directly with an attorney. Get help from an experienced lawyer in New Jersey today.