Hello, I'm Karla Mitchell. Going through a legal case can be very expensive and challenging. I won't go into details, but I recently underwent my own legal battle that lasted several years. It is finally over and I successfully received a settlement, but I had to spend so much time studying law in order to play my role in my own court case. While I found a great attorney at one point, I felt completely lost initially and I don't want anyone else to experience the same thing. So I decided to create this blog for those who would like to know more about law.
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Although you likely know that a living trust involves naming a beneficiary to your assets and properties through a trust while you're alive, rather than one being created after you have died, there are maybe a few ins and outs of living trusts that elude you. Read on and discover the answers to a few commonly asked questions about living trusts. If you believe you and your loved ones can benefit from a living trust, it is highly recommended that you seek out the services of a local and trusted probate attorney.
Can A Living Trust Protect Your Property From Creditors?
Essentially, no. If a creditor has won a lawsuit against you regarding property you own and you transfer that to a beneficiary through a living trust, the creditor can still stake a claim on your property or assets. Debts that you have accrued throughout life will transfer over to the assigned beneficiary and they will be required by law to pay them off. However, if the case of ownership of your property goes to probate court, creditors will be notified of the death and must file a claim regarding claiming debt. If they miss the deadline for filing such matters, they will be out of luck.
Does A Living Trust Avoid Probate Court?
Yes. If you transfer property or assets into a living trust, then the beneficiary is blatantly named and the property will not have to go through the ringer of probate court. This can wind up saving your family and beneficiaries a decent amount in both court and attorney fees. After the property has been successfully transferred to the beneficiaries in question, the living trust is effectively dissolved.
Is A Living Trust A Public Document?
Unlike a will, a living trust is not a public document. This is part of the reason why it is sometimes difficult for creditors to claim their debt on property that has been transferred to a beneficiary through a living trust. A will necessarily goes through the avenue of probate court, which is a public hearing. A living trust is a private document, and only those named as beneficiaries generally have access to its contents.
This guide should have given you the answers to just a few burning questions you have about living trusts. Living trusts can be a beneficial and private way to transfer property and assets to family and other trusted sources.
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