What is a living trust and what are the advantages and disadvantages of setting up one?

A living trust is a legal document that allows an individual to place their property in trust, meaning they give up ownership rights to their assets while they are still alive. This document allows the trustor to designate a person or persons to manage their assets and finances as directed by the trustor. The trustor can also specify how the assets should be distributed after their death. The main advantage of a living trust is that it can help avoid probate court. Probate is the court-supervised process of transferring assets from the deceased to the rightful beneficiaries. This process can be lengthy and expensive. By setting up a living trust, assets may pass directly to the specified beneficiaries without going through probate. Another advantage is that a living trust can be kept private. Since the trust is not open to public record, the trustor’s wishes regarding the distribution of his or her assets remain private. The main disadvantage of a living trust is the cost to set up and maintain the trust. There are typically lawyer fees and other associated costs to legally create a trust. Additionally, the trustor must properly transfer their assets into the trust before it is effective. In Washington, it is important to consult with an attorney to ensure that the living trust is properly established. An attorney with experience in Elder Law can also help guide the trustor through the process and ensure their wishes regarding the trust are met.

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What is a living trust and what are the advantages and disadvantages of setting up one?

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