See Jason Files on KATV's Good Afternoon, Arkansas on November 19, 2018.
LITTLE ROCK, Ark. (KATV) — Attorney Jason Files describes what a living trust is and in what ways people would use them.
"A living trust is similar to a will, in that it is a way to transfer your property to your heirs. But, it has some advantages-- it is faster; it is private; it doesn't require the court to be involved- it avoids probate; it can be cheaper. It is also different in that a trust takes effect immediately, not on your death. It can be used if you become temporarily disabled- you can have a successor already lined up who will be able to put your assets to use for you.
What a trust is-- it is a separate entity into which you can put your property. With a revocable or "living" trust, you can take those things out of the trust at any time. You are still in control. It is basically like a treasure chest that you have the key to.
Who is a trust for-- not just for wealthy people. Not right for everybody; if you have a very limited estate there may be an easier way to avoid probate.
What happens at death-- the living trust becomes an irrevocable trust. The successor trustee takes over, and must follow the dictates of the person who created the trust. The creator has much more flexibility in what happens versus distribution through a simple will. If you have a minor child, the trust can continue until they are an adult. If you have an heir who can't handle money, you can keep their inheritance protected."
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