Establishing a living trust is one other method of estate planning that has become more and more frequently used because of its many benefits. In establishing a living trust, an individual may transfer his/her interest in property to loved ones while maintaining an interest in the property during the individual's lifetime. One potential benefit of forming a living trust for estate planning purposes is the avoidance of probate for the property placed in the trust. This could save your loved ones time, money and hassle. Another potential benefit of a living trust is a potential reduction or avoidance of capital gains tax obligations. This may not apply in every situation, so it is important to discuss this potential benefit with an estate planning attorney. Yet another potential benefit of having a living trust is that you get to choose the trustee -- the person who manages your trust. During your lifetime, you could elect to be the trustee, and you could decide who will take over that responsibility in the event of your incapacity and/or death. It may be morbid topic to cover, but if you own property of any value, whether it is real estate or personal property, you should consult an estate planning attorney about how a living trust could be beneficial to you and those you love.
If, after consulting with an attorney, you decide that a living trust is right for your estate plan, you should next speak with your insurance agent to discuss whether your newly established trust should be added as a named insured to your insurance policies. Doing this may avoid a potential legal battle over whether the trust or an individual are protected under an insurance policy in the event of a loss, such as a fire loss or slip and fall.
This blog is not intended to serve as legal advice, but to provide general information. If you have questions about estate planning or related legal issues, such as those involving insurance coverage, you should consult with an attorney. You may contact Attorney Source, PLC to set up a consultation by clicking "CONTACT" at the top right of this page, by calling (248) 345-3343 or by email at email@example.com.