What is the living trust? It’s a safe box that you throw your assets into and keep the key. And that box comes with “during-your-life” and “after-your-death” instructions about the ownership, control, management and distribution of those assets, and you pass down your key to the person or persons you entrust with management of those assets.
If you you own your assets: house/Cash/Stocks, take those assets and put them in a Trust.
You still own these assets while they are in the Trust. You get the income from those assets. You get to “dip” into the Trust and take out whatever you want for any purpose. House expenses, Living Expenses, Travel, Luxury Expenses.
You still manage the assets in the Trust. You can Sell them. Buy more assets. Invest in anything you want. Exchange them for other assets. Repair them. Finance them.
Your Trust comes with written instructions that are long, boring and usually written in indecipherable legalese, but nonetheless very important. the bottom line:
- You own the assets in the Trust.
- You are the manager of the assets in the Trust.
- You can do whatever you want with the assets in the Trust.
Here is the important part:
If you become ill to the point that you can no longer manage the assets in the Trust, someone else can manage them for you.
This “someone” has to manage them for YOUR BENEFIT ONLY during your illness. YOUR health. YOUR care. YOUR day-to-day expenses. You are STILL the owner of the assets in the Trust. even though the “someone” manages them for you while you are incapacitated.
The instructions also say that when you die, a “someone” takes control of the assets in the Trust to do three things. Protect them. Preserve them. and ultimately distribute them to the persons you want them to go to.
Do you need a living trust? General answer is if you have real estate of ANY value…you should have a living trust. Contact our office and we go through your facts and make determination if you need one.