Living Trust FAQ
An introduction to living trusts -- a popular way to avoid probate.
What is a living trust?
» Why should I make a living trust?
How does a living trust avoid probate?
Is it expensive to create a living trust?
Is it a hassle to hold property in a living trust?
Is a living trust document ever made public, like a will?
Does a living trust protect property from creditors?
If I make a living trust, do I still need a will?
Can a living trust reduce estate taxes?
Why should I make a living trust?
The big advantage to making a living trust is that property left through the trust doesn't have to go through through probate court. In a nutshell, probate is the court-supervised process of paying your debts and distributing your property to the people who inherit it.
The average probate drags on for months before the inheritors get anything. And by that time, there's less for them to get: In many cases, about 5% of the property has been eaten up by lawyer and court fees.
Still, not everyone has to worry about probate, and some people don't need a living trust at all.
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