Questions You Need to Ask Your Attorney About a Living Trust
Creating a living trust is a complex process requiring you to make important decisions about your estate. It’s important to understand the implications of these decisions and to ensure you’re making the best choice for you and your family. To get the most out of your trust, it’s important to ask your attorney the right questions.
Here are some questions to ask an attorney about living trusts to ensure you’re making an informed decision about your estate.
Do I Need a Living Trust?
This is a key question to ask your attorney. Depending on your estate planning goals, a living trust may or may not be the best option. Your attorney can help you understand the pros and cons of a living trust and help you decide if it’s the right choice for you.
What Are the Benefits of a Living Trust?
Your attorney can help you understand the various benefits of a living trust, such as avoiding probate, protecting your assets, and providing for your family in the event of your death. Understanding the benefits of a living trust can help you make an informed decision about your estate.
Who Should I Appoint As My Trustee?
Your attorney can help you understand the various roles of a trustee. Depending on your estate planning goals, you may need to appoint a professional trustee, such as a bank or trust company, or you may choose to appoint a family member or friend as the trustee.
Your attorney can help you understand the responsibilities of a trustee and make sure you choose the right person to manage your trust.
What is the Difference Between a Living Trust and a Will?
The primary difference between a living and a will is that a living trust is created during your lifetime and allows you to manage your assets while alive. A will is a document that is created after your death and directs how your assets should be distributed after your death.
Additionally, a living trust does not have to go through probate, whereas a will does. Your attorney can help you understand the differences between a living trust and a will and determine which option is right.
What are the Disadvantages of a Living Trust?
One of the primary disadvantages of a living trust is that it can be more expensive to create and maintain than a will. Additionally, it can be more complicated to manage and administer a living trust than a will.
If you choose to appoint a professional trustee, there may be fees associated with the trustee’s services. Your attorney can help you understand the costs associated with setting up and maintaining a living trust and help you decide if this type of estate planning is right for you.
How Can I Manage Estate Taxes?
Estate taxes can be managed by carefully planning your estate and taking advantage of the various available exemptions and deductions. Also, you can use trusts to help reduce or avoid estate taxes.
For example, a bypass trust can help transfer assets to heirs without incurring estate taxes. Your attorney can help you develop an estate plan that takes into account your particular circumstances and helps you manage estate taxes.
In conclusion, it is important to research and ask an attorney knowledgeable in living trusts the right questions to ensure the trust is in your best interests. An attorney can help advise you on the type of trust that suits your individual needs and help you decide what to include in the trust and how to establish it.
They can also provide information on how to fund the trust and how to avoid probate. Asking the right questions and getting the right answers from an attorney will help you make an informed and wise decision about setting up a living trust.
Estate Planning Lawyers Colorado can help you with all your estate planning needs, like wills, trusts, probate, and legacy planning. Contact our trust lawyer today.