Living Trusts in Indianapolis
Living Trusts vs Wills
A living trust is similar in many ways to a will, with only a few differences. One of the main differences is the timing of which these documents come into effect. A will doesn’t become effective until after your death, and then the beneficiaries have to go through the lengthy and expensive probate process. A trust becomes effective as soon as the document is finalized, and a living trust bypasses the probate process entirely, which can be a huge benefit for your beneficiaries.
Revocable Living Trust
There are two types of living trusts. The first of which is referred to as a “revocable living trust.” This basically means that until your passing, you maintain control of your assets, and can change who you leave your estate to whenever you please. Although there are many benefits to this type of trust, you cannot avoid or minimize estate taxes.
Irrevocable Living Trust
The second type of living trust is referred to as an “irrevocable living trust.” Unlike a revocable trust, once the document is finalized, you can no longer make changes to the trust, and can no longer control your assets. This option can seem scary because it appears very final, but it does have its benefits. Unlike wills and revocable living trusts, an irrevocable living trust is not subject to estate taxes.
Living trusts are certainly an option to consider when planning for the future, but which option is right for you? Attorney Timothy J. Wagner can help you answer that. Give him a call today. He’ll take care of everything you need.