What is the purpose of a living trust?
A living trust is a legal document that allows a person to set up a trust fund to manage their property and assets. The purpose of a living trust is to provide a way to manage and distribute assets while the person is still alive, and to handle the distribution of assets after their death. A living trust helps to avoid probate, which is the court process of distributing assets after a person dies. This can be a lengthy and expensive process, so creating a living trust allows for a more efficient way to manage and distribute the assets, without having to go through the court. A living trust also allows for more control over the distribution of assets. The trust can specify when and how the assets should be distributed, either while the person is alive or after death. This means that the person can set up rules and guidelines for how they want the assets to be managed both while they are alive, and after their death. The living trust also gives the person a way to provide for heirs, charity, and other beneficiaries in case the person dies. This allows the person to specify who will get what and how much, and can be modified at any time. Overall, a living trust is a great way for a person to control and manage their assets both before and after their death. It provides an efficient and cost-effective way to ensure that the assets are managed and distributed in the way that the person wishes, both while alive and after death.
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