FAQs About Living Trusts in Michigan
Why do I need a living trust?
Simply put, so your survivors can avoid probate. Without a trust, the probate court will supervise the process of dealing with your final debts and distributing your assets. The court has the final say in what will happen, even if your will says something else. Probate court can take months to get through and will cost your estate a significant amount of money, leaving less for the people you wanted it to benefit.
How does a living trust help avoid probate?
The most basic explanation is that when you create a trust, it is its own entity. Like a person, the trust can own assets like homes, businesses, investments, etc. So, when you transfer assets into the trust, it becomes the owner. While you are alive, you would be the trustee and in full control of your assets. When you die, you designate a successor trustee to take over for you. So, when you die, the trust lives on and the only thing that changes is the trustee. The trustee will then settle your estate and distribute your assets according to your wishes. Because the trust lives on after you have gone, and it owns your assets, there is no need for probate.
Does it cost a lot to create a living trust?
We offer affordable estate plans that include a living trust. Our fees are typically much less than other firms and our estate planning attorneys will give you personal attention and the right advice. You won’t get that in a kit or online service, and you might be left not fully protected.
Will everyone be able to see my trust?
No. A trust does not get published and does not become part of the public record. It is a private document that you control. You can share it with anyone you choose or keep it completely confidential.
If I make a living trust, do I still need a will?
Yes, a will and trust do different things. A will deals with things outside of the trust and you need both as a part of a comprehensive estate plan.
Can I avoid taxes with a living trust?
Nope. You still need to pay all taxes.
Does my living trust need an EIN?
In most cases no, at least not while you are alive.
More Questions About Living Trusts in Michigan?
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