The most common form of a Living Trust in use is the Revocable Living Trust. This document is very much like a will in that it includes your instructions for handling your final affairs and who you want to receive your assets after you die. But unlike a will, a Living Trust does not go through probate, it prevents the court from controlling your assets at incapacity, and it gives you (and not the courts) control over the assets you leave to your minor children or grandchildren.

Living trusts are not new, they are not tax shelters or gimmicks either. They have been used successfully for hundreds of year, and go back to at least the Middle Ages.

The difference between a will and a Living Trust is that a will is the most widely used legal document when it comes to planning your estate and transferring your assets to your loved ones. A will names a beneficiary who will receive your property and assets when you die, and an executor or administrator (the person who will handle your final affairs). But a will may not be the best plan for you and your family. A will does not avoid probate, does not prevent the court from taking control of your assets if you become physically or mentally incapacitated, and does not give you the control you think it does, if you have minor children or grandchildren.

Many people confuse a Living Trust with a Living Will. The two are not the same. Living Trust controls your assets. A Living Will controls medical decisions (such as life support in case of terminal illness). Therefore, a Living Trust does not control medical decisions. Nor does Living Trust protect assets from creditors while you are living. It does not affect your income taxes. And it does not help you qualify for Medicaid.

The benefits of having a living trust are many. A Living Trust avoids time and expense of probate when you die. It avoids multiple probates if you own real estate in more than one state. It allows an easier, more efficient management of your estate. It prevents court control of assets if you become physically or mentally incapacitated. It gives you maximum privacy. It can reduce or eliminate estate taxes. It allows quicker distribution of assets to beneficiaries. It prevents the court from controlling assets when minor children inherit. It prevents unintentional disinheriting. It is more difficult than a will to contest. It provides an effective prenuptial protection. It is easy to set up. It can be canceled or changed at any time. It gives you maximum control while you are living, and after you die.

A Living Trust is teamwork. There is you, the Grantor (who creates the Trust), the Trustee (who manages the Trust; usually you and your spouse, or a trust company or bank), the Successor Trustee (if you or your spouse cannot manage the Trust), the Beneficiaries (persons or organizations who will receive the assets in your Trust when you and your spouse die), the Children's Trust (set up within the Living Trust to look after the interests of your children in case both you and your spouse die or become incapacitated), the Guardian (person named to raise your children if you and your spouse are unable to because of incapacity or death), and the Children's Trustee (who manages the assets in your Children's Trust until the children reach the age you specify they will inherit).

All of your instructions will be followed in a Living Trust because it is a binding legal document when it is signed (unlike a will which only becomes binding after you die and after it is accepted by the court). By law, a trustee must follow your Trust instructions, and act in a conservative manner at all times for the benefit of the Trust beneficiaries.

You can place all of the following into your Living Trust: Home, real estate, land, condos, out of state property, current mortgage, homeowner's, liability and title insurance, property taxes, transfer tax, rental real estate, credit cards, notes you owe, mortgages, loans, checking, savings, pay-on-death accounts, certificates of deposit, credit union accounts, safe deposit boxes, stocks, bonds, mutual funds, savings bonds, automobiles, boats, other vehicles, personal untitled property, life insurance, self-provided insurance, sole proprietorship, closely-held corporation, subchapter S corporation, limited partnerships, corporations, limited liability companies, general partnership interests, copyrights, patents, royalties, oil and gas interests, club memberships, and any foreign assets.

To easily create your own living trust without a lawyer, CLICK HERE.