A living trust is a legal entity where you can transfer your property and assets. The trust creator is a settlor, and the person moving assets into the trust is the grantor. You can create a living trust or inter vivos trust, then appoint a successor trustee to manage and distribute the property you placed in it when you are no longer capable due to death or incapacity.
A living trust protects your interests by allowing you to maintain control and ownership of your trust assets while you are alive and well. You can use the assets in the trust whenever and in whatever way you please because you can designate yourself as the trustee. Furthermore, it protects your estate from formal administered succession, which is inevitable if you only have a will in Louisiana.
Benefits of a living trust
A living trust creates a veil of privacy and prevents court interference. More importantly, it gives you great control over your estate. You can outline your specific instructions in the trust document by setting dates and conditions and scheduling the disbursement of assets. Here are other reasons you may want to create a living trust:
- Protect your personal and business assets from third-party claims
- Establish a chain of succession and condition inheritances
- Keep estate assets and property private
- Provide for someone with special needs
- Prevent beneficiaries from wasting or mismanaging assets
- Minimize family disputes and will contests
After you pass, the person you nominate as your successor trustee will follow the terms and conditions outlined in your trust document. Therefore, you should appoint a trustee who you trust will perform their fiduciary duty to you and your estate in good faith.