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Should You Make Your Own Living Trust?

Todays Date: October 18, 2018

Nobody wants to think about dying–or possibly being incapacitated later in life. But somewhere along the line it’s vital to make a plan to protect assets so they can be passed on to heirs.

If you do decide to make your own living trust, one of the biggest questions you face is do you go revocable or irrevocable?

Here are some tips to determining which form of living trust is best to suit your individual needs.

Tip No.1: Revocable Trust 101

There are two basic kinds of living trusts: revocable and irrevocable. A revocable trust is simply one where the person who creates the trust-commonly known as the trustor or grantor-can change or revoke any part of the trust during their lifetime.

Revocable trusts still require a trustee, usually a member of the family, who by law can supervise the assets in the estate while the trustor is alive. (They can also manage personal affairs of the trustor in the case of incapacitation.)

What makes this form of trust different is that the trustee is not allowed to use assets for personal gain without explicit permission from the trust itself.

Tip No.2: What a Revocable Trust Gets You

For most folks, a living trust is far better than a will, in that it can allow a trustor to be very clear about their desires when it comes to divying up the assets of the trust.

Perhaps the biggest gain to be had from a revocable living trust is how it allows a trustee to take over the affairs of a trustor in the event that they become sick.

Another great feature to the revocable living trust, if you decide to go that way, is ho much less needless legal paperwork there is.

Tip No.3: Revocable Trust Cons

However, due to its revocable nature these kinds of trust aren’t seen as iron-clad by the IRS. What’s that mean? Income stemming from the trust is taxable.

Also, you won’t see any savings on probate fees. It turns out being flexible does come with a price.

There are a ton of great resources to help you make your own living trust. Gathering all the information you can will help you avoid sky-high lawyer bills, and protect your estate from needless taxes and fees.

Learn more about making your own living trust. Stop by http://make-your-own-living-trust.com/ to find out how to protect your assets from taxation and provide peace of mind to yourself and your family.

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