Lifetime trusts, often referred to as "living trusts" or "inter vivos trusts," are a powerful
and versatile estate planning tool that allows individuals to protect and manage their assets
during their lifetime while also ensuring a smooth transition of wealth to their heirs.
In this guide, we'll explore the concept of lifetime trusts and the numerous benefits they
offer for safeguarding your assets and financial well-being.
A lifetime trust is a legal arrangement where an individual, known as the "grantor" or "settlor,"
places their assets into a trust during their lifetime. The grantor appoints a trustee to manage and
administer the trust according to specific instructions outlined in the trust document.
Unlike a will,
which only takes effect upon the grantor's death, lifetime trusts are active during the grantor's
lifetime and can continue after their passing.
Asset Protection: Lifetime trusts offer a shield against potential creditors and legal claims.
By placing assets in the trust, they are often shielded from legal judgements, lawsuits or creditors' claims,
providing financial security.
Privacy: Unlike wills, which are publicly accessible documents, lifetime trusts allow for
private and confidential asset management. Your financial affairs remain confidential, and the details of
the trust are not publicly disclosed.
Incapacity Planning:: Lifetime trusts are invaluable for incapacity planning. If the grantor
becomes unable to manage their affairs due to illness or disability, the appointed trustee can step in to
ensure a seamless transition of control and asset management.
Avoiding Probate: Assets placed in a lifetime trust bypass the probate process, which can
be time-consuming and costly. This means your heirs can access their inheritance more quickly and with fewer
legal complications.
Creating a lifetime trust involves the following steps:
Choose a Trustee:
Select a trusted individual or institution to act as the trustee.
Draft the Trust Document:
Work with an attorney to create a comprehensive trust document
outlining your wishes, asset management instructions, and distribution plans.
Fund the Trust:
Transfer ownership of your assets into the trust, ensuring all relevant
documentation is completed.
Regular Review:
Periodically review and update the trust to reflect changes in your financial
situation or family dynamics.
In conclusion, lifetime trusts offer a wealth of benefits, including asset protection, privacy, incapacity planning, and streamlined estate distribution. They provide a robust framework for managing your assets during your lifetime and ensuring a smooth transfer of wealth to your loved ones. When crafted and managed carefully, lifetime trusts can be a cornerstone of your comprehensive estate plan, offering both peace of mind and financial security.
Our experienced estate planning professionals have a deep understanding of the complexities of estate law. We stay up-to-date with the latest legal developments to craft customized solutions that meet your unique needs.
Your estate plan should reflect your individual circumstances and goals. We take the time to listen, learn about your aspirations, and tailor our services to align perfectly with your wishes.
From wills and trusts to asset protection and tax minimization, WAM Estates offers a wide range of services to cover every aspect of estate planning.
We believe in clear communication and transparency throughout the planning process. You'll always know what to expect, and we'll guide you through every step with clarity and understanding.
With WAM Estates, you can face the future with confidence, knowing that your legacy and loved ones are protected.
