A living trust, which you may update during your lifetime, could help manage family assets and address financial and caregiving concerns. Individuals with sufficient financial and mental capacity may create a living trust and transfer their assets into it, as described by Entrepreneur.com.
Your trust may hold property, bank accounts and investments. If you own a business or partnership, you may include it in your trust’s holdings. You may retitle vehicles or a boat to your trust. Valuables such as art, collectibles and family heirlooms could also transfer over.
Who takes over my trust if I cannot manage it on my own?
When creating your trust, you may name yourself as its trustee and manage it on your own. Your documents could, however, also name an individual who takes over your trust if and when you can no longer serve as its trustee. If, for example, you become ill or incapacitated, your successor trustee could then manage your affairs.
Your trust’s documents may include instructions outlining how your successor trustee may manage your property or sell your assets. The proceeds from selling assets, for example, may serve to cover expensive medical bills. When you die, your successor could then manage your trust’s assets on behalf of its named beneficiaries.
Who may I name as beneficiaries in my trust?
Your trust’s documents may name any individuals as beneficiaries. You could, for example, name a spouse, your children or relatives and friends. If you have a dependent with special needs, your instructions may describe how your trustee could help provide for his or her care.
Your estate planning affairs generally remain private when you create a living trust. With a trust, your beneficiaries may also avoid Pennsylvania’s probate court procedures.