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MYTHS about Revocable Living Trusts

MYTHS about Revocable Living Trusts.

Some people with living trusts believe that no legal proceedings are necessary at death. Or if they are necessary, “everything happens automatically.” That is a myth. Yet people don’t believe the same about a Will. They know that the court is involved with a Will and that legal work is required, normally much legal work.

People have living trusts to avoid probate at death because probate is expensive and slow. But the legal work cannot be voided even with a living trust.  Legal work is created because estates (whether by will or a living trust) have to be administered. Otherwise the assets are frozen in the deceased owner’s name and can never be enjoyed by the family. Making a living trust (or a will) is writing a plan for your assets and how they will be handled and distributed at death. It is similar to the process of building a house. Plans are drawn up. Materials purchased. But until a person puts them together and does the building, nothing happens. Likewise assets will never be distributed to the family until someone takes over as trustee and does all that the law requires a trustee to do.

 

 

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