What Is A Living Trust Will?

A living trust will functions primarily as a holding place for assets to be transferred into which then become immediately available to a designated beneficiary. Instead of having multiple accounts in multiple locations all with similar or dissimilar beneficiaries a living trust which can be managed solely by an individual and make for a expedient process of transferring assets at the time of death.

This differs from a standard will in that a living trust is a completely private process which guarantees all assets or funds designated there in remain private when transferred to a beneficiary. Wills however, while just as legally binding, are a public process which must go through probate so all parties with a vested interest in the outcome have an opportunity to examine the will and challenge its legality. For high income individuals or those who prize privacy among everything else a living trust will is a more private solution.

Just like a will, a living trust does not automatically include any additional assets that are purchased after the time of its creation. If a new summer home is purchased or a speed boat is acquired, those new assets would need to be added to the living trust. In the event of an untimely death a living trust will only include those assets which had been added to the documentation so it is very important to make sure additional assets such as investment or real estate are added in a timely fashion.

As mentioned earlier, tangible assets such as an automobile or home can have individuals designated as beneficiaries. Children can be added to titles and monetary accounts such as savings and investments often have a payable on death stipulation. This however can be a time consuming process with significant amounts of paperwork and multiple beneficiaries. If an individual has little net assets or only one or two beneficiaries this may be the way to go as it can be less complicated and less expensive.

Living trust Wells are not for everyone but their benefits should be considered when planning for the future. High income individuals or those with large estates might find it easier to use an attorney to draft a living trust to maintain privacy and to expedite the transfer of assets should something happen in the future. As with all legal processes, thoroughly research what is available and choose the product appropriate for you situation.