A living trust is a legal document that you can create while you are still alive that places your assets and property into a trust that is held for your desired beneficiary. You can elect to appoint a trustee or you can do this yourself. There are many reasons to consider setting up a living trust. These reasons include:
● Avoiding probate and lengthy legal battles after your death as property left through the trust does not have to go through the probate process. You do not have to worry that a portion of your assets will get eaten up by taxes, court and lawyer fees.
● Lowering your estate and income taxes
● Ensuring that an heir is provided for financial in the event of your death – this can give a minor child this financial security without giving the child control over the property or money.
● Provide financial security to a family member or loved one that has mental impairments or does not have experience managing large sums of money or investments. Financial management is left to the trustee.
● Protect and preserve assets if an heir has a history of making poor financial choices.
● You can put in place what is called a “spendthrift” provision which can further preserve the integrity of your assets. A spendthrift keeps the heir from transferring his or her interest and also bars creditors from reaching into the trust.
● A living trust is easy to change, update, or revoke.
If You Have A Living Trust, Do You Still Need A Will?
It is important to note that even if you decide to set up a living will for any of the reasons listed below, you should still plan to create a will (and keep it updated). A will serves as a backup document for property that you may obtain that is not included in a living trust. If you do not have a will, any property not included in your living trust would automatically, by law, go to your closest relative.
Establish A Living Trust Today
Kallemeyn & Kallemeyn can help guide you through the process of creating a living trust that meets your goals. Our team takes time and great care to understand your unique situation and provide advice and support that will support your specific goals. We have more than two decades of experience serving the Anoka County area, including Anoka, Coon Rapids, Blaine, Andover and Ham Lake MN. For more information or to sit down to discuss the idea of creating a living trust, call our team at (763) 427-5131.