A living trust is a particular type of account that can own a person’s things while they are still alive. Like all trusts, it also details what to do when the person dies, advises a trust lawyer from a local law firm such as William B. Moore. With such a comprehensive document, you may wonder if you still need to have a will. The answer is a definite yes.
There are some things that a living will can’t do. For these things, you will need a will to outline your wishes. Keep reading to learn more about living trusts and why you should consider adding a will.
What Is a Living Trust?
A living trust can contain anything that has value, even if it is just a dollar’s worth of something. You can place your home, money, belongings, and even your ideas into a living trust. When you form the living trust, you put all your belongings into it in a process called funding the trust. From this point, the trust itself owns all your things.
Upon forming the trust, you become the grantor. You name someone as the trustee, who will carry out the instructions within the living trust upon your death. You can choose any manner of leaving the items within the trust to your heirs.
What Are the Limitations of a Living Trust?
One of the most significant constraints of a living trust is that it only covers what you have transferred into it. If considerable time has passed since your last update, there is a chance you will own non-transferred assets at the time of your death. In this case, a pour-over will is a good solution. It directs all your remaining property to transfer into your living trust.
There are other essential matters that you can’t solve in a living trust. In many states, the law requires that you use a will to name a legal guardian for your child(ren). A living trust cannot outline your wishes for who will take care of your children until adulthood. Also, a living trust can’t take care of any of your debts. You must use a will to forgive any debts you still owe upon your death.
There are some things that a living trust doesn’t cover. If you have this type of trust, it is vital to understand its limitations. If you have needs beyond a living trust, consider adding a will to your estate plan to ensure your family is cared for. Contact a local trust lawyer today.