“Understanding Living Trusts: A Guide to Estate Planning for Adults Over 18”

Creating an estate plan is essential for everyone over the age of 18, yet a recent survey found that only 32% of Americans have an estate plan. One key component of an estate plan is a living trust, which allows the grantor to control the management and distribution of assets during their lifetime and after their death. Unlike a will, a living trust takes effect while the grantor is living, helping to prevent the trust from going through probate. Assets that can be assigned to a living trust include real estate, financial accounts, jewelry, artwork, and business interests, but retirement accounts should not be assigned. Living trusts can be structured as revocable or irrevocable, with the former allowing the grantor to maintain control over the assets and the latter transferring legal ownership to the trust. While there are benefits to establishing a living trust, such as smooth asset transfer and protection from litigation, there are also downsides, such as giving up control and potential tax implications. It is recommended to consult with an estate attorney to determine what assets should be assigned to the trust and which type of living trust is best for individual circumstances.