Many people establish revocable living trusts to which they transfer most of their assets. They are entitled to the income of the trust as well as the principal, if needed, and reserve the right to change or revoke the trust during their life. Usually, the person who creates the trust serves as the initial trustee and provides for a successor trustee in the event that one is needed.
A living trust offers these benefits:
- Privacy, unlike a probated will which can be accessed by the public.
- Assets in the trust are not subject to the judicial probate process.
- A means to dispose of real estate assets located in another state without opening additional probate proceedings in that state.
The main disadvantage would be the cost of establishing and maintaining the trust. It is also important to keep in mind that a living trust does not reduce income and estate taxes, nor does it eliminate the need for a will.
Some people establish a living trust and then never get around to transferring assets to it, in which case the trust is an empty shell. Be sure to fund your trust – you can use your will to dispose of other assets not transferred to the trust.
Finally, remember that disposal of assets through your living trust is similar to a bequest in a will. A gift from your living trust will make a lasting contribution to UUSC’s work, creating a world free of oppression and upholding the inherent worth and dignity of all people. If you already have a living trust, and would like to include UUSC in your plans, your attorney can draft a simple amendment to the trust. And if you are in process of creating one, you may, of course, include such a provision. A gift through a living trust, like a bequest in a will, can be unrestricted, for a designated purpose, or to create an endowment.
