What are the advantages and disadvantages of a living trust?
A living trust is a legal document that allows a person, known as the grantor, to transfer their property to another person, known as the trustee, during their lifetime instead of waiting for it to be transferred upon their death. In Kansas, living trusts provide the grantor with several advantages and disadvantages. The primary advantage of a living trust is that it allows the grantor to decide how their property will be managed and who will receive it after their death, without the need for probate court intervention. This can save the estate money in court costs and other legal fees. Moreover, the grantor can make changes to the trust document as their life circumstances change, allowing them to more closely tailor their estate plan. On the other hand, a living trust comes with several potential drawbacks. For example, setting up a living trust can be an expensive process, as a professional advisor must be consulted, and the fees associated with setting up and maintaining the trust are typically high. Additionally, living trusts can be difficult to modify or revoke once they are established. Furthermore, living trusts can increase the grantor’s exposure to estate taxation, since the value of the trust is included in the grantor’s estate. In summary, living trusts can be a useful estate planning tool for those looking to more closely control how their property is managed and distributed after their death, but it is important for any prospective grantor to consider all of the potential advantages and disadvantages of a living trust prior to establishing one.
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