A living trust is similar to a will in that it designates exactly what you want done with your property and assets following your passing and to whom your assets are distributed to. When you pass away, your will is automatically entered into probate, which can be a lengthy and time consuming process. This can prevent your family from having access to your assets for a significant period of time following your death. However, a living trust allows your assets to bypass probate proceedings and allow your successor trustee to distribute your estate according to your will.

Revocable Living Trust – With this type of trust, you transfer your assets to the trust while living, yet you retain control of those assets until your death, after which they pass directly to your beneficiaries without going through probate court. You have the ability to revoke or otherwise change the trust whenever you please, but your assets are still subject to estate taxes.

Irrevocable Living Trust – This type of trust enables you to permanently give away your assets during your lifetime, whereby you relinquish all control and ownership over the assets. You cannot change or revoke this type of trust, but since you technically do not own those assets, they are not subject to estate taxes.

For assistance in determining whether a living trust may be the best option for you and your family, contact Grogan & Souto, P.C. today. We are available to consult with you regarding your estate. (845) 294-6155.