What is a living trust and how does it work?

A living trust is a legal document that allows you to transfer ownership of your assets to a trustee during your lifetime. It is typically used to manage your estate and assets while you are still alive, as opposed to a will which only becomes active upon the death of the creator. When creating a living trust, you (the trust creator) would transfer ownership of your assets to the trustee. Then, you would also name a beneficiary who would receive the assets upon your death. The trustee would then manage the assets and distribute them according to your wishes as outlined in the living trust. A living trust can be revocable, meaning it can be changed or modified any time while you are still alive. This can provide flexibility as your needs may change over time. A living trust is beneficial because it can provide a seamless transition of assets to your beneficiary upon your death, without the need for probate. Probate takes a considerable time, and can also have significant costs associated with it. In contrast, a living trust transfers the assets to the beneficiary without the need for probate. In Washington, estate planning law requires the living trust to be approved by the court before it can be implemented. It is important to ensure that your living trust is created properly and all the required elements are included. Overall, a living trust is a legal document that allows you to manage your estate and assets while you are still alive, and transfer ownership to a beneficiary without the need for probate. It is a beneficial tool, but it is important to follow the estate planning laws in your state to ensure the trust is valid.

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