Below are answers to some of the most frequently asked questions we receive about living trusts:<\/p>\n
Any property you leave behind in a living trust is exempt from the probate process. This process can often extend for months before heirs are able to receive their inheritance, and can lead to a chunk of the estate value being eaten by court and lawyer\u2019s fees. Therefore, a living trust can help you save money on your estate while sparing your loved ones from quite a bit of hassle after your death.<\/p>\n
Many people are under the misconception that creating a trust is expensive. However, the process is not much more complicated than developing a will, and therefore similar in cost. While you may create a living trust on your own, it is always advisable to work with an attorney to make sure you are developing it in accordance with the law.<\/p>\n
No\u2014unlike a will, the contents of a trust are never made public. The public nature of wills is because they must be submitted to a probate court, which then publishes the contents. <\/p>\n
No. Any creditor who takes legal action against you and wins can go after your trust property, as if it was still owned in your name. After you pass away, all property you owned at the time of your death (including assets held in a living trust) are also fair game for creditors to go after. For example, if you place your house in your living trust and that asset passes down to your children upon your death, a creditor could approach your children and demand they pay the owed debt up to the home\u2019s value. <\/p>\n
Even though the house is in the trust, real estate ownership is public record, so creditors can find out who owns it and its value.<\/p>\n
Yes. A will is a great back-up tool for transferring property. It can be written to include a clause that names one or more people to inherit all property not being left to a specific beneficiary. It is also a good way of passing down assets that have less financial value or fewer potential legal complications.<\/p>\n