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Dubuar, Lirhus & Engel LLP
ton 98101
206-728-5858
Avoiding Probate:
A Living Trust May Be the Answer
Many people are becoming more interested in living trusts for a number of reasons. A living trust can accomplish some useful benefits:
** Eliminate the cost of probate;
** Privacy of family financial matters at death;
** Facilitate management of property; and
** Eliminate the necessity of a court-appointed
guardian of a
person's estate.
How does a living trust work? In a simplified example,
Jones first writes his trust document. Then he transfers his property
to a trustee (which may be himself). The trust document says the
property will be used for Jones's own benefit during his life. The
document also says that Smith will become the trustee when Jones dies
and will transfer all the trust property to Jones's children. Jones
would include language in the trust allowing Jones to change the
trust, or even terminate it.
In the example, Jones would have complete use of his property for his life and his property would be transferred to his children at his death. No probate is necessary when Jones dies.
A living trust can accomplish these ends and more. However, there are costs to be weighed, including the expense of setting up the trust, the management expenses if a professional trustee is employed, and the additional record-keeping. Sometimes there are simpler ways to accomplish the same goals.
A living trust is only a part of a person's estate plan. A person should also consider a will, community property agreement, durable power of attorney, living will, and possibly other instruments. Some of these may not be necessary, but they should all be discussed with a competent advisor to determine the best estate plan suitable for each individual's unique circumstances.
-Douglas J. Engel
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The information in this web site is all general information. The information is applicable only to the state of Washington, unless otherwise stated. This general information is not legal advice for your particular circumstances. If you have legal questions you should consult your lawyer.