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Creating a living trust

On Behalf of | Jan 18, 2024 | Trusts |

A living trust is a legal arrangement that enables you to control the distribution of your assets during your lifetime and after your death.

This kind of trust helps ensure you are in charge of your assets.

Set up a living trust

A living trust lets you maintain control over your assets while providing clear instructions on their distribution. It secures a seamless transition of wealth without the need for probate court. Having this document in place can save time and costs.

Knowing how to create this legal document helps you protect your holdings.

  • Identify assets: Make a comprehensive list that includes real estate, bank accounts, investments and personal property to serve as the foundation of your asset management plan
  • Designate a trustee: Select an individual you implicitly trust who possesses the financial acumen to handle the responsibilities of managing your trust according to your wishes
  • Establish beneficiaries: Clearly define who will benefit from your trust, whether family members, friends or charitable organizations.

Life is dynamic, and your financial situation may evolve. Regularly review and revise your trust to reflect any changes in assets, family circumstances, or financial goals.

Understand tax implications

A living trust can provide certain tax benefits. While Connecticut does not impose an estate tax on smaller estates, larger estates may face federal estate taxes. Consider consulting a tax professional to navigate these complexities.

Transfer ownership

Transfer asset ownership to the trust to maximize the benefits of a living trust. This process, known as funding, ensures seamless management and distribution per your wishes.

Creating a living trust in Connecticut is a strategic step for those with substantial wealth. With this legal plan in place, you can safeguard your financial legacy for future generations.