A living trust is a legal document that places a person’s assets into a fund they can manage during their lifetime. It’s similar to a will because it lets them state their desires for distributing their property to heirs after they die. Upon the individual’s death, the trust would transfer these assets to a successor trustee to oversee their distribution to beneficiaries. Many people consider a living trust a legal strategy for the wealthy, but that’s just one myth about such an agreement.

3 Misconceptions Regarding a Living Trust

1. Probate Makes It Pointless

Some people view a living trust as a waste of money because they think an estate still must go through probate, the process that oversees the distribution of someone’s assets after their death. However, most living trusts are exempt from this requirement, though there are exceptions. If you didn’t transfer all your assets to the trust or it doesn’t meet legal standards, probate would apply. Trusts that are not living trusts but are part of a will also are subject to probate.

2. It’s Expensive

Some people shy away from living trusts because the initial drafting fee is more than the cost of a will. However, a will eventually will incur more charges, such as probate or conservatorship expenses. When you compare total fees, a trust usually is less expensive than a will.

3. You Will Lose Control of Your Assets

Some people assume a living trust would prevent them from accessing their assets, but this is false. If you designate yourself as the trustee, as most people do, you could do anything you want with your property, including buying and selling assets. Additionally, you can cancel a living trust or change it, such as designating a different trustee.

Living trusts are useful for managing your assets but also are complicated, so seek guidance from a lawyer to set up yours correctly. For legal assistance in O’Fallon, MO, turn to Woodlawn Law Offices. Attorney David Schmidt has 25 years of experience in estate planning and family law, so you can expect reliable and honest service. Go online for information about the firm’s other services and call (636) 240-6667 to arrange a consultation. Like them on Facebook for more advice and news from their law offices.