What is the purpose of a living trust?
A living trust is a legal document that allows a person to manage their assets and pass them on to their heirs after they pass away. It’s a powerful tool that can make the process of inheritance much easier, particularly in Washington where the laws governing inheritance can be complicated. The primary purpose of a living trust is to ensure that your assets are put to use as you wish after you’ve passed away. This could include providing an income or other payments to your heirs, setting up a college fund for your grandchildren, or providing for other charitable activities. The trust can also be designed to protect your estate from creditors and taxes. The trust document serves as a will, setting forth your wishes for distribution of your assets after you die. You select a trustee who is responsible for managing the assets according to the instructions set forth in the document. The trustee is obligated to follow the document, meaning that your assets will be distributed according to your wishes, no matter what the law in Washington may stipulate. Living trusts offer much flexibility and control over how your assets are distributed. It’s an important tool for anyone in Washington who wants to ensure that their assets are put to use as they wish.
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