Those in the Greenwich area with significant wealth will want to ensure their assets are protected so they can be passed on to their heirs upon their death. One way to accomplish this is by executing a living trust.
An overview of living trusts
Living trusts are a legal document in which ownership your assets are transferred into the trust and are managed by a named trustee. Once you pass away, the assets in the trust are transferred to your named beneficiaries. Conditions to inheritance can be included in the trust. Living trusts can be revocable, meaning it can be changed by the grantor at any point during the grantor’s lifetime. Irrevocable trusts, however, cannot be modified after they are executed.
What are the benefits of executing a living trust?
Living trusts can benefit you in many ways. First, living trusts bypass the probate process, which can be costly and time consuming. Bypassing probate also ensures the terms of the trust are kept private, unlike a will, which is a public document. In addition, living trusts are generally more difficult for heirs to contest than a simple will.
Is a living trust right for you?
Ultimately, only you can decide if a living trust is right for you. Many people of significant means prefer the asset protection, control and privacy that living trusts offer. If you do decide to execute a living trust, it is advisable to seek assistance, to ensure the final document is legally sound.