What is the purpose of a living trust?
A living trust is a legal document that allows an individual to manage and protect their assets upon death. The purpose of a living trust is to provide an organized way for an individual’s assets and property to be distributed following their death. It is an alternative to having a will that goes through probate. When creating a living trust, the individual appoints someone to act as the trustee, who will be responsible for managing the trust after the individual’s death. This person carries out the wishes of the grantor, or individual creating the trust, by distributing the assets in accordance with the grantor’s instructions. Living trusts are commonly used in Michigan inheritance law for a number of reasons. It makes the asset transfer process easier than it would be in a probate court, reduces estate taxes, and can provide needed funds for those named in the trust. The trust can also be used to protect assets from creditors, keep assets from entering into probate, and ensure that the property is distributed as the grantor intended. In short, a living trust is a document that offers protection to an individual’s assets and property. Its purpose is to ensure that the property is transferred to the desired beneficiaries in accordance with the grantor’s wishes.
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