How does a living trust avoid probate and prevent court control of assets at incapacity?
When you set up a living trust, you transfer assets from your name to the name of your trust, which you control — such as from “Bob and Sue Smith, husband and wife” to “Bob and Sue Smith, trustees under trust dated (date of trust).” Legally you no longer hold title (don’t panic: everything now belongs to your trust), so there is nothing for the courts to control and re-title when you die or become incapacitated. The concept is very simple, but this is what keeps you and your family out of the courts.
When you set up a living trust, you transfer assets from your name to the name of your trust, which you control – such as from “Bob and Sue Smith, husband and wife” to Bob and Sue Smith family trust. Legally, you no longer own anything (don’t panic: everything belongs to your trust). So there is nothing for the court to control when you die or become incapacitated. The concept is very simple, but this is what keeps you and your family out of the courts.
When you set up a living trust, you transfer assets from your name to the name of your Trustee, which you control, such as from “Bob and Sue Smith, husband and wife” to “Bob and Sue Smith, Trustees under the Smith Family Trust Agreement dated January 1, 2000”. Legally you no longer own anything (do not panic: everything now belongs to your Trustee who manages the assets pursuant to the terms of the Trust Agreement), so there is nothing for the courts to control when you die or become incapacitated. The concept is very simple, but this is what keeps you and your family out of the courts.
When you set up a living trust, you transfer assets from your name to the name of your Trustee, which you control, such as from “Bob and Sue Smith, husband and wife” to “Bob and Sue Smith, Trustees under the Smith Family Trust Agreement dated January 1, 2000”. Legally you no longer own anything (do not panic: everything now belongs to your Trustee who manages the assets pursuant to the terms of the Trust Agreement), so there is nothing for the courts to control when you die or become incapacitated. The concept is very simple, but this is what keeps you and your family out of the courts. Do I lose control of the assets in my trust? Absolutely not. You keep full control. As Trustee of your trust, you can do anything you could do before, buy or sell assets, change or even cancel your trust (that is why it is called a revocable living trust). You even file the same tax returns. Nothing changes but the names on the titles. Is it hard to transfer assets into my trust? No, and your attorney,
