A Living Trust, also known as a revocable living trust or inter vivos trust, is a legal document that holds and manages assets during the grantor’s lifetime and allows for the seamless transfer of assets to designated beneficiaries after the grantor’s death. The importance of a Living Trust lies in several key benefits it offers:

1. Avoidance of Probate: One of the primary advantages of a Living Trust is that it helps to bypass the probate process. Probate is a court-supervised procedure that validates a will, settles debts, and distributes assets to beneficiaries after a person’s death. Probate can be time-consuming, expensive, and open to public scrutiny. By placing assets in a Living Trust, they can be transferred directly to beneficiaries without the need for probate, thereby saving time and costs for the estate.
2. Privacy: Unlike a Will, which becomes a public record during probate, a Living Trust allows for a more private and confidential distribution of assets. The details of the trust’s terms and beneficiaries remain confidential, providing a level of privacy for the grantor and beneficiaries.
3. Incapacity Planning: A Living Trust allows the grantor to plan for potential incapacity or disability. If the grantor becomes unable to manage his or her affairs due to illness or injury, the successor trustee (who is designated by the grantor) can seamlessly take over the management of the trust assets, avoiding the need for court-appointed guardianship.
4. Control and Flexibility: As the grantor of a Living Trust, you retain control over the trust assets during your lifetime. You can amend or revoke the trust at any time as long as you are mentally competent, allowing for flexibility in managing your estate as circumstances change.
5. Estate Tax Planning: For larger estates that may be subject to estate taxes, a Living Trust can be used as a tool for estate tax planning. By structuring the trust appropriately, married couples can take advantage of both spouses’ estate tax exemptions, potentially reducing the overall estate tax burden.

Gregory Levinson is an experienced estate planning attorney; one who can help determine whether a Living Trust aligns with your needs and objectives.

Now that you are a parent, it is more important than ever to create a Will if you don’t already have one; and even if you do, it needs to be updated. Here are some key points to consider when preparing or updating a Will:

1. Seek legal advice: It is advisable to consult with a qualified attorney who specializes in estate planning to ensure your Will is legally valid and covers all necessary needs.
2. Determine your assets: Make a comprehensive list of your assets, including property, investments, bank accounts, vehicles, life insurance policies, and personal belongings. This will help you decide how you want them to be distributed.
3. Choose a personal representative: A personal representative is responsible for carrying out the instructions in your Will. Select someone you trust and discuss their willingness to take on this role.
4. Name guardians: If you have minor children, you can use your will to designate guardians who will take care of them in the event of your passing.  Make sure to discuss this with the individuals you have in mind before including their names in the Will.
5. Specify beneficiaries: Clearly state who should inherit your assets. You can allocate specific items or percentages of your estate to different beneficiaries.
6. Consider alternate beneficiaries: It’s wise to name alternate beneficiaries in case the primary beneficiaries pass away before you or are unable to receive the assets.
7. Update regularly: Review and update your Will periodically, especially after major life events like the birth of a child, marriage, divorce, or acquiring new assets.

While this information provides a general overview, it’s important to consult with a legal professional to ensure your Will meets all legal requirements and addresses your specific circumstances.

I am here to help. Contact me at 503-222-9057 for a consultation. I look forward to assisting you with your estate planning needs.