Living trusts are legal documents that are designed to make certain that your assets are delivered to the beneficiaries you select. KAKE’s recent article, “How to Create a Living Trust in Montana,” explains how to create a trust in the Treasure State. Here are the basic steps:
- Make an inventory of your property to see what to place in your trust.
- Name a trustee to manage your trust.
- Create a trust document by hiring a trust lawyer.
- Sign and notarize the document.
- Fund your trust.
A living trust is a legal document that allows you to transfer your property and assets to any beneficiaries you name in the arrangement. This goes into effect, as soon as you create it. You can still be alive and either name a trustee or act as the trust’s trustee. If you’re the initial trustee, your successor trustee will carry out your wishes and distribute your property to anyone you’ve chosen as a beneficiary. There are two types of living trusts: revocable and irrevocable living trusts. With revocable trusts, you can change or cancel the trust, but an irrevocable trust is permanent.
One reason people create living trusts, is that it’s a more private way of protecting their assets and determining which of their beneficiaries gets what. As an alternative, you can go through the probate process.
If creating a living trust sounds interesting, you’ll have many advantages for protecting and distributing your property. With a living trust, you can name a trustee and choose beneficiaries while you’re still alive. You can also choose which assets and at what date certain assets will be given to your beneficiaries.
During the estate planning process, it’s good to know if Montana has estate or inheritance taxes. Estate taxes may affect your living trust, and your estate size will determine how much you’re taxed.
Montana doesn’t have an inheritance tax or estate tax, but a federal estate tax applies to those with estates worth more than $11.4 million ($22.8 million for married couples).
Whether you use the probate process, a living trust or a will, feel free to call (305) 443-3104 to set up an appointment to discuss creating an estate plan to protect your assets.
Reference: KAKE (September 30, 2019) “How to Create a Living Trust in Montana”