When a Pennsylvania resident creates a living trust, they actively establish it while alive. The individual or individuals named as beneficiaries will receive the trust property after the trust creator passes away. Many individuals create a living trust because it offers a more direct method of transferring assets after death. Pennsylvania’s time-consuming and often expensive probate process must be completed before a last will and testament can be effective.
Revocable living trust
When individuals include a revocable living trust as part of their estate planning, they can revoke or modify it at any time. In most cases, the trust creator serves as the trustee, giving them complete control over the trust and the property included in it.
Upon the trust creator’s death, the person or organization designated as the successor trustee assumes control of the trust property. Their responsibility is to distribute the property to the beneficiaries according to the guidelines outlined in the trust. In the case of a living trust created for a married couple, the surviving spouse retains control of the trust. Only after both spouses pass away does the trust transfer to the successor trustee.
Irrevocable trust
An irrevocable trust, once signed, cannot be revoked or modified. It offers various tax benefits but requires the individual to relinquish ownership and control of the trust property.
To create a trust, an individual must specify whether it is individual or shared. They must select the property they intend to place in the trust and designate the successor trustee. They will also need to compile a list of beneficiaries and work with legal professionals to create the necessary documents. Finally, they must sign the document in the presence of a notary public to make it official.
Most people find it uncomfortable to plan for their death. However, taking the time to create a trust can significantly ease the burden on loved ones left behind. If you have any questions about trusts or other estate planning matters, please contact https://www.wolfbaldwin.com/contact/ at your earliest convenience