Legal procedures are the furthest thing from your mind when
a loved one passes away. There are many issues, however, that need to be
addressed when a person dies - whether or not he person's family is ready
to deal with those issues. Probate, also known as Estate Administration,
is the process that occurs after a person dies and prior to his or her assets
being distributed. Being prepared by choosing an attorney with estate administration
experience allows the process to be implemented smoothly. It provides you
or your loved one with the peace of mind knowing that probate assets will
be collected, maintained and distributed among heirs, beneficiaries and/or
creditors properly and with ease.
A Living Trust is a legal document that allows you to transfer
ownership of your titled property from your individual name to a trust which
you control. When you die your family avoids probate and its
related costs - both financial and emotional.
The legal name for a living trust is a revocable inter vivos
trust. Inter vivos means that it was created while you
were alive and Revocable means that it can be revoked or changed by you
at any time.
A Living Trust lets your property be distributed to the people
or organizations you specify-but it does not go through probate as with
a will.
When you create a trust you are called the grantor. If you and
your spouse set it up together you are both grantors. You then name a trustee
to manage the assets of the trust. This can be yourself or you may appoint
someone else.
Spouses may be co-trustees so either of you can automatically
act for the other. Then if one of you becomes incompetent or dies, the other
instantly has control of all trust property with no court involvement. When
you die, your back up trustee (or co-trustee) will basically act as an executor
if you had a will - but does not have to report to the court. He or she
will pay your final bills and distribute your assets to your beneficiaries.
This process is much quicker, less expensive and more private than probate.
A Living Trust lets your property be distributed to the people
or organizations you specify-but it does not go through probate as with
a will.
An attorney prepares your living trust from your decisions about
what you want if you become disabled or when you die. The attorney will
make sure the living trust satisfies your state’s legal requirements
and will prepare it for you to sign. The document is signed and notarized.
You then change titles on your property (deeds, bank accounts, investments,
cars, etc.) from your name to the name of your trust. One example would
be changing the name on the deed to your home. Lets say the deed currently
says "John and Sue Jones, husband and wife." And lets also assume
you signed your trust on December 1, 1995. To change your title over to
your trust you both sign a "correction deed" changing the title
from your individual names to "John and Sue Jones, Trustees under trust
dated December 1, 1995." Once the titles on all of your assets are
changed they are owned by the trust and the trust is funded. However, you
still have control of these assets.
If you are considering or have questions about Estate Planning or Living
Trusts, please contact the Family Legal Center, LLC. Attorney Laura
Cohen will be happy to assist you with any of your Estate Planning needs.
Family Legal Center, LLC
Alstan Mall 2526
Monroeville Blvd.
Monroeville, Pennsylvania 15146
Phone: 412.824.0100
Fax: 412.824.0700
Resolution of legal issues depends upon many factors, including variations of facts and interpretations of Pennsylvania law. This web site is not intended to provide legal advise on specific subjects, but rather to provide insight into legal developments and issues. The reader should always consult with legal counsel before taking action on matters covered by this web site.
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