If you own real estate, consider creating a living trust once you’ve decided who will inherit it. These estate planning arrangements allow individuals to transfer various assets to applicable beneficiaries seamlessly. Here’s what you should know about establishing one—or more. 

3 Facts to Know About Living Trusts

1. They’re Funded Prior to Passing

Unlike other estate planning arrangements, trusts go into effect prior to passing. In order to finalize a trust, you must fund it, which means transferring all named assets to it. This may seem risky, but if you choose to serve as the trustee, you can retain control over these assets until the time comes to distribute them among applicable beneficiaries. 

2. They’re Exempt From Probate

Because trusts are funded before the grantor passes, the assets they contain do not have to go through probate upon his or her death. This is one of the biggest benefits of including trusts in your estate planning. Unlike wills, trusts also allow you to establish specific terms for distributing assets. For example, you can limit how any property is used or implement requirements that beneficiaries must meet in order to obtain ownership. 

3. They’re Not Part of the Public Record 

All wills eventually become public record. The terms of a trust, on the other hand, can remain private. If you're concerned about your beneficiaries’ privacy after receiving their inheritances, transferring assets to a trust may be the answer. 

To create a trust that includes some of your property, you will need a real estate appraisal. Concept Appraisal Services is based in Littleton, CO, but has served clients throughout the Denver metro area since 2003. Owned and operated by Connie Jo Esbenson, they've successfully completed more than 30,000 appraisals for satisfied clients. To learn more about their estate planning services, visit their website or call (303) 506-6254.