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Finance allah shmoop what is a living trust Well a

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regular old trust is a legal vehicle into which assets

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are placed so that their distribution or rather who gets

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what from them when the owner of that trust dies

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is legally clear How does that matter Like at all

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Sounds like a lot of paperwork for more or less

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

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have clarity as to who gets what When you die

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the government often has the right to tax the crap

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out of whatever you have left in the form of

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

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being like probed in a not a good way Anyway

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probate is basically a process of figuring out if in

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fact your will is your will And if you are

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in fact will so living trust is one that lives

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while you do when you die it gets distributed and

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beyond Reducing taxes and giving clarity is the how your

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dearly departed spirit wants its assets distributed A living trust

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can also adjust to your moods Living trust our revokable

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which means you can change your mind and revoke it

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

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Unless you can legitimately send your spirit back from the

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dead and convince a judge to let a lawyer amend

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

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trust basically comprises three sets of people you are trusting

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in the form of bringing them inside your financial tent

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Well the first player is you that is you are

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a separate party in this some party And it is

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you who creates the trust and divines who gets what

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when and how you kaname yourself and potentially your spouse

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as trustees beneficiaries That means that until you die at

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least you are in charge And then your spouse if

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you have one is in charge after you go you

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know kick the bucket The likely successor trustees are your

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kids So yeah the second player is the trustee the

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person in charge of your assets after you die and

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

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disposed of the way you want him to be Well

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the trusty also deals with conflicts defending the wishes in

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

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

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one who actually loved you for you all right the

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third component of living trust the beneficiaries the ones who

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get the one point three million dollars in proceeds from

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the sale of your mansion in palo alto Yeah this

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one it says nike on it That shoebox thing Yeah

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

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rover with pure gold rims and passenger side ejector seat

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And all of this is done in large part so

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

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saves them a ton of time and money in grief

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

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cars while your assets wend their way through the government

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

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to get filed publicly which means that even after you

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are dead you can maintain privacy Generally the more assets

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you have the more important it is to have a

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

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