The term living trust' is popular and widely used in the estate planning circles
. Many people however fail to appreciate properly the meaning of the term. Learning about the features of living trust could help preparing effective estate planning.
Living Trust is one of the terminologies that are often used in the field of real estate and especially in the arena of estate planning . Clients apart many legally knowledgeable people also fail to realize the true features of such living trust very often. Understanding features of the living trust could help accomplish the task of preparing an effective and comprehensive plan for estate management.
Getting adequate protection of the property from predator like creditors is one of the basic objectives of effective estate planning. Living trust can protect the properties from the unscrupulous creditors but not completely. Properties that are subject of living trust can be quickly as well as quietly transferred to the beneficiaries. Creditors will not know what was won or transferred by the property holder. Sense of protection evaporates when the creditor goes on preferring law suits since in such cases neither the property under hold nor that transferee can be concealed. A good and experienced estate planning attorney will also advice you against such practices.
Only saving grace in the entire circumstances is that most of the times the creditors do not have the time or will to pursue their debtors to find out such properties that are subject matter of the living trust. Entering into law suits for recovery of debt is also not preferred by many such creditors. Good trust planning attorney can also find out ways and means where inconveniences are not faced either by the client or by the creditor. Arranging management of estate in such manner is one of the major challenges for them.
Divergences of legal systems that exist from state to state have to be taken into consideration as well. For instance one who is trying for estate planning in Orange County has to look for the specific laws and regulations prevalent in the county so that they are not in for any unpleasant surprises at the end of it