A living trust is a legal document created by a person during their lifetime that states what happens to their assets, who has control over it, and how it’s distributed during their life and after death. The grantor designates a trustee to manage these assets for the beneficiary.
There are two types of living trusts, which are revocable and irrevocable trusts. A living revocable trust allows the grantor themselves to be the trustee and have control over the trust. A living irrevocable trust allows the grantor to give up certain rights of their control in the trust. There are many details that need to be considered when creating this document, which is why an attorney is needed to make sure everything is legal and correct.
Disadvantages of a Living Trust
Living trusts do have a great purpose but do have some minor disadvantages. It consists of a lot of detailed information and paperwork to make sure everything is exactly as the grantor wants, it requires record keeping if the grantor transfers a lot of property in and out of the trust, and it is difficult to refinance any property that is in the trust. Banks will require a copy of the trust and if that doesn’t work you would have to transfer the property back into your name then once the refinance is done, back into the trust. This can all be taken care of easily though with a professional and knowledgeable attorney.
Living Trusts with Gentry Nalley
If you or someone you know is in need of establishing a living trust in Lansing, MI, Gladwin, MI, Flint, MI, and the surrounding areas, our skilled attorney Ms. Erika E. McNamara, Of Counsel is here to help. She has several years of professional experience to guide you through every step of the process of creating and managing this document. We understand that everyone’s needs are different and will tailor each document specifically for you. Call us at (517) 522-4092 or click here to contact us so we can make this process smooth and provide you with the peace of mind you’re looking for.