Living Trust 101

A living trust is a legal document you create. At the same time, you're alive to ensure that the assets you place in the trust, such as real estate, stock and bond holdings, CDs, and jewelry, are distributed in the manner you specify after your death, without your beneficiaries having to go through court probate to receive the assets you leave them.

A living trust, also known as a revocable trust, gives you power over your assets and property while you are alive. You can adjust the trust, such as adding a newborn as a beneficiary, adding or deleting assets, or changing who receives what.

This form of estate planning tool, however, allows you to appoint a third party, known as a trustee, to manage and make decisions concerning trust assets on your behalf when you die or are unable to do so due to illness or injury.

What are the advantages of a living trust?

Avoiding probate. Assets maintained in a living trust can be given to beneficiaries without going through the court system, often known as probate. Probate, the legal process by which the court verifies a deceased person's will, is time-consuming, taking months and frequently years. Probate often carries high attorney and court fees. Avoiding probate by creating a living trust ensures that your assets are transferred to heirs more efficiently, rapidly, and privately.

Protecting Privacy. Another advantage of a living trust is that it avoids probate, so your financial activities remain secret and out of public view. In contrast, a will, which must go through probate, becomes public record, which means your nosy neighbor can find out how the estate was divided and who received what. 

Preparing for Incapacity. As people live longer lives, it is becoming increasingly vital to plan ahead of time for any unexpected medical or mental health issue, such as brain trauma or dementia, that renders you unable to manage your affairs. A living trust ensures that your trustee distributes your assets by the trust's terms and in the best interests of your beneficiaries.

Matthew Copley

Matthew Copley throughout his career with various financial institutions has specialized in helping retirees and pre-retirees plan for and navigate their retirement. He believes you would be hard pressed to find a financial advisor in the greater San Diego area that is more passionate about maximizing retirement income while reducing taxes.

He is a financial advisor that enjoys helping people and it shows in the fact that he has conducted hundreds of educational workshops over the years. These workshops cover various retirement planning topics including “How To Maximize Social Security Benefits”, and “Understanding the Different Types of Annuities”, just to name a few. He loves to help people with their finances.

https://www.financialplannersandiego.com/matthew-copley
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