Use of Living Trusts
One of the most popular estate planning instruments today is the revocable living trust. Trusts are used to maintain control and disposition of assets after death, and some can be used to minimize the estate tax impact of property transfers. The difference between a revocable and irrevocable trust is whether the trust creator can change or terminate the trust. In the revocable trust, the creator can change the terms and conditions of the trust, or even eliminate the trust altogether. An irrevocable trust, on the other hand, cannot be altered once established. When used and implemented correctly, an irrevocable living trust offers many benefits. Using a Living Trust for Financial Protection A revocable living trust provides financial protection in the event you are no longer able to manage your financial affairs yourself. You can be trustee while you are healthy, but if you have a stroke or become otherwise incapacitated, your successor trustee would manage your assets in the trust. Usi...