What Is A Living Trust - Terms As Explained By The Old Woman Who
Lived In A Mansion
December 17, 2004
By Kathy Curtis
She had so many children and so much to leave to
them - especially after signing a movie deal with
Warner. After moving out of the shoe, she decided
to legally transfer all her belongings into one location.
Her search, like so many people began with answering,
"What is a living trust?"
If The Shoe Fits, Wear It!
The Old Woman needed to know what a living trust does
that a will doesn't. Simply put the trust manages
her belongings and give out her assets during her
lifetime and again when she passed on.
Whereas, a will identifies guardians of minors and how you would
like medical care to treat you should you become incapacitated.
In another way, a trust deals with possessions and a will deals
with people's welfare.
Is a living trust what The Old Woman needed? In this case, both
a will and trust is highly recommended. These two forms compliment
each other. The Old Woman could form a living trust while she is
still living to make sure her belongings went to the family she
so loves. The Old Woman may elect a revocable living trust in case
she would like to make changes while she is still alive.
Who's Who
The Old Woman went ahead and created the living will. As the creator,
she is called the Grantor. The grantor also takes on the role of
Trustee. The trustee makes sure to transfer titles and other documents
into the trust so that the trust works on the assets' behalf. Without
this step, the living trust is worthless.
The Old Woman definitely didn't want to see this Mother Hubbard
syndrome in her affairs. Assets that aren't protected by a living
trust are subject to probate, taxing that takes about 8% of the
asset's worth. If The Old Woman can no longer perform her functions,
the trustee's assigned back up can take over. Many times this back
up trustee is a benefactor. A benefactor receives the grantor possessions
as outlined by the grantor. Most benefactors are loved ones such
as children.
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