Living Trusts Can Ensure Assets Will Be Accurately Appropriated

Jun 24, 2011 - LegalZoom News Sources
The written-document can ensure the individual in charge of the trust that the court or a judge is not responsible for the displacement of funds.

Living trusts may be used to ensure that an individual or institution has complete control over the distribution of an estate. Assets can be placed in the hands of a person that is trusted or a favorite charity, in order to transfer ownership of funds to the right place.

Certain states allow individuals to hand over control of the estate by signing several documents, but others have more complicated processes. Though the methods of transferring ownership may vary state to state, the trustee is accountable for every dollar, creating a sense of accountability, according to a New Jersey Newsroom article.

The written-document can ensure the individual in charge of the trust that the court or a judge is not responsible for the displacement of funds. An executor of the estate is in charge of where the money will go, and the government does not have to approve any of the decisions, the article noted.

Living trusts that are properly drafted and executed can allow an individual to avoid probate, as the deceased no longer are the owners of the assets, according to the Federal Trade Commission.