Firstly, it is important to understand as to what a trust actually is. Basically, it is a legal way of managing, holding and distributing property. There are four different elements of every trust. These include the “trustor” or “grantor” (an individual who creates the trust), corpus (assets), trustee (a person responsible behind holding and managing assets), and beneficiary (a person who benefits from the creation of a similar trust). Now, it can be said that trust funds are not only common among the wealthier section of the society but also enjoys equal popularity among middle-class families.
Creating the Trust
Creation of trust benefits elderly citizens immensely because they are primarily the target of financial scams, theft and all other forms of monetary abuses. This is where the importance of a living trust necessarily creeps in which makes it possible to hold the assets in a proper legal structure. The underlying objective of coming up with a living trust for elderly is to make it possible for them to manage their finances as they gradually age and suffer from deteriorating health conditions. An advantage of setting up a living trust for seniors is that it is modifiable and revocable, so if required, the Grantor can change the decision as who should inherit the finances and property and by how much, and the trust can be revoked although less frequently.
Funding the Trust
While setting up a living trust for seniors, you are supposed to make certain important decisions. To benefit your cause, you are expected to stick to the facts. Also, you need to stay wary of outrageous claims and other details that you feel might have been exaggerated. First and foremost, you must stay wary of false claims about how much time may be required to set up a living trust. It is important to realize that it may require a considerable amount of time in order to set up a trust properly. Merely, writing up a proper document is not sufficient as the trust shall not be deemed to be valid until and unless the same is transferred from your name to that of the concerned trust. This process can be better termed as “funding of the trust”.
The Costs of Living Trusts
Never take too seriously any false claim suggesting that you do not need a will if in case you have a living trust. It is imperative to realize that even if you decide to purchase a living trust, still it is always a judicious thought to have a proper and genuine will as a backup. Finally, bogus claims regarding the cost of setting up a living trust must not be attached much importance. The sooner you realize that living trusts can be expensive the better it is for you. In certain odd cases, it has even been observed that lawyers demand five to six times the cost of a will.
In fact, depending upon the size of the real estate, the cost of a living trust may be much higher as compared to the cost of probate. Caring People website has an article that guides you on how to set up a living trust for seniors. Keeping in mind the basic rules mentioned on the website shall only enrich your understanding level and you shall be better poised to decide on what needs to be done and what must be avoided.