Living Trusts

A living trust is when a trustee holds legal title to the property of another person, the beneficiary. A living trust, also known in Latin as an "inter vivos" trust is created when the trustee is still alive. The property contained in the living trust may be used during the life of the trustee.

The main advantage of making a living trust is to spare one's family the expense and delay of probate court proceedings after one's death. Maryland has many complex rules relating to probate so a living trust may be a good idea if one wants to avoid this complex process.

To make a living trust, one needs to:

1. Create the trust document, which says who will inherit trust property and names you as trustee (the person in charge)

2. Sign the document in front of a notary public.

3. Transfer your property, such as your house and car, to your name as trustee of the trust.

If one has a living trust, it does not negate the need of having a will. A will provides a backup plan for any property that doesn't make it into your trust. For example, if you acquire new property and don't add it to your trust before you die, that property won't pass under the terms of the trust document. You can also use a will to name someone to inherit property that you haven't left to a particular person or entity in your trust.If you don't have a will, any property that isn't transferred by your living trust or other method will go to your closest relatives as determined by Maryland State law.

One can have either a revocable living trust or an irrevocable living trust. A revocable living trust is completely alterable during your life. You can even completely cancel it. An irrevocable living trust on the other hand is not alterable once it is signed.

If you would like to make a living will, call The Law Office of Adina S. Katz, LLC today. We can help you draw up your documents in accordance with Maryland Law.

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