What You Need to Know About Forming a Living Trust in Washington
Forming a living trust is important as you get older and have many assets to manage. Here’s everything you need to know about forming a living trust in Washington.
What is a Living Trust?
A living trust is a form of estate planning allowing you to control who and where your assets go while you are still alive in order for them to be distributed in the way you would like once you die.
Related: Community vs. Separate Property in Washington State
Should I Form a Living Trust?
Forming a living trust offers several benefits for the following reasons:
- A living trust can help your loved ones avoid probate since the trustee who will be appointed by you will take the responsibility of overseeing the transfer of the assets to the beneficiaries according to your instructions.
- A living trust can also allow you to prepare for the moment you become unable to manage your affairs, starting from which your appointed successor will step in on your behalf without facing interference from the court.
When creating an estate plan, revocable living trusts are one option to consider when creating an estate plan. A living trust usually may not be right for you if you are young because you might prefer life insurance instead.
If you have significant debt, probate may actually be a better option than a living trust. Whatever the situation, consider speaking to an experienced estate planning lawyer to ensure that you understand the pros and cons of each estate planning strategy.
Related: Family Trust vs Living Trust: The Difference
How to Form a Living Trust in Washington
1. Create the trust by completing the necessary documents listed here.
2. Fund the trust by transferring property. Should you become incapacitated, your successor trustee will step in to manage the trust. When you pass away, the trustee will pay the taxes and debts and distribute the property among the beneficiaries.
Contact Us
If you or a loved one would like to learn more about Forming Living Trust Washington, get your free consultation with one of our most qualified attorneys in Washington today!