Inheritance

Finance allah shmoop what is a living trust Well a

regular old trust is a legal vehicle into which assets

are placed so that their distribution or rather who gets

what from them when the owner of that trust dies

is legally clear How does that matter Like at all

Sounds like a lot of paperwork for more or less

the privilege that pay lawyers well if you had don't

have clarity as to who gets what When you die

the government often has the right to tax the crap

out of whatever you have left in the form of

filtering through it in a process called probate and it's

being like probed in a not a good way Anyway

probate is basically a process of figuring out if in

fact your will is your will And if you are

in fact will so living trust is one that lives

while you do when you die it gets distributed and

beyond Reducing taxes and giving clarity is the how your

dearly departed spirit wants its assets distributed A living trust

can also adjust to your moods Living trust our revokable

which means you can change your mind and revoke it

I'ii take it back after you die it becomes irrevocable

Unless you can legitimately send your spirit back from the

dead and convince a judge to let a lawyer amend

it And you can't that's just a joke you're living

trust basically comprises three sets of people you are trusting

in the form of bringing them inside your financial tent

Well the first player is you that is you are

a separate party in this some party And it is

you who creates the trust and divines who gets what

when and how you kaname yourself and potentially your spouse

as trustees beneficiaries That means that until you die at

least you are in charge And then your spouse if

you have one is in charge after you go you

know kick the bucket The likely successor trustees are your

kids So yeah the second player is the trustee the

person in charge of your assets after you die and

it's their job to be sure that your assets are

disposed of the way you want him to be Well

the trusty also deals with conflicts defending the wishes in

your trust The way that person presumes you'd want them

Defended nor example you're loving spouse the fifth one the

one who actually loved you for you all right the

third component of living trust the beneficiaries the ones who

get the one point three million dollars in proceeds from

the sale of your mansion in palo alto Yeah this

one it says nike on it That shoebox thing Yeah

they're the ones who get the house the custom range

rover with pure gold rims and passenger side ejector seat

And all of this is done in large part so

that your airs don't have to go through probate which

saves them a ton of time and money in grief

Your heirs don't want to have to live in their

cars while your assets wend their way through the government

process he's over years And the will does not have

to get filed publicly which means that even after you

are dead you can maintain privacy Generally the more assets

you have the more important it is to have a

living trust If you have booked guests now probably doesn't 00:02:55.67 --> [endTime] matter