Define Living Trust
In simple terms, a Living trust is a plan under which one person, namely a trustee shall hold legal title to the property of someone else who is called a beneficiary. If you become the trustee of your Living trust, then you can hold complete control over all the property in that trust. A living trust also termed as “inter vivos” trust by lawyers. It is a trust that you create while you are alive, rather than the one that is created after your demise under the terms laid down in your will.
Why create a Living Trust?
The foremost advantage of a living trust is to spare ones family the delay and expense of probate court proceedings after your demise. However, Maryland does not follow the Uniform Probate Code, which makes the entire process simple so it’s a good idea to make a Living Trust if you are a resident of Maryland, to avoid the complex probate process.
Is there any requirement of a will after making a Living Trust?
Yes, a will is always required. A will can serve as a backup plan for any property that is left out of the Living Trust. A clean example would be if you acquire a new property after making a Living Trust. That property will not fall into any terms and conditions laid down in your trust document template. If any property fails to reach a Living Trust or will of a person then it will be transferred to your closest relative as concluded by the Maryland State Law.
Does Writing a Living Trust lessen the estate tax in Maryland?
This completely depends upon the kind of Living Trust you create in Maryland. If your trust is a simple probate-avoidance living trust, then it shall have no effect on the federal estate tax. However, if your trust is more complicated like an AB-trust, then it can reduce the tax claimed by the federal estate tax bill. This only implies to estates that are worth more than $5 million.
How to make a Living Trust in Maryland?
Things required to create a Living Trust in Maryland are as follows:
Make the Trust Document Template – This document shall state who all will be the beneficiary of your trust and will claim what property under that trust.
Sign the Document – The trust document has to be signed in front of a Notary Public.
Transfer all valuable assets like your car and house to your name, as the trustee of the Living Trust.
_____________ has many living trust document templates already designed for you. Our step by step interview will get you through a simple questionnaire session and extract all details about your property and based on the response we get, the trust document template will be customized to your beneficial situation complying with all the state laws of Maryland. ______________ living trust document template is very easy to use and thorough – you can edit the document at your will for a complete year after the purchase.