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Thoughtful Attorneys For Estate Planning & Administration, Probate, Wills, Trusts, And Guardianship

Living Trust Attorneys For Maryland And Washington, DC Estate Planning

At Adams Law Office, LLC, our Living Trusts lawyers understand that when you are starting your research on estate planning options, terms are frequently confusing. That is why we offer our clients critical information, counsel, and legal advice to clarify the terms of Living Trusts. Created during the grantor’s lifetime, there are two main types of Living Trusts: Revocable and Irrevocable.

The main difference between a Living Trust and a Testamentary Trust lies in when they are created. A Living Trust, also known as an Inter Vivos Trust, is established during your lifetime, allowing you to transfer assets into it while you are alive. You can even act as the Trustee and beneficiary, managing the assets yourself and avoiding probate upon your death.

On the other hand, a Testamentary Trust is created through your Will and only comes into existence after you pass away. The Will outlines the terms of the Trust, and the probate court oversees its establishment.

Moving Your Assets Into A Living Trust

The process of moving your assets into your Living Trust is also known as “funding the Trust.” It is an important step involving components of your assets, including

  • Real estate
  • Bank/brokerage accounts
  • Vehicles
  • Personal property
  • Life insurance/retirement accounts

Is Creating A Living Trust Right For Your Family?

It depends on your family’s specific circumstances. Factors we will help you consider:

  • Desire to avoid probate: Living Trusts avoid the time, expense, and publicity of probate.
  • Beneficiaries who need guidance: If you have minor children, grandchildren, or any beneficiaries that require guidance, a Trust will allow you to give detailed instructions about how assets should be distributed and when.
  • Privacy concerns: Trusts are generally more private than Wills, which become public record during probate.
  • Family dynamics: If you anticipate family disputes, a Trust can provide clearer guidelines.
  • Disability planning: A Living Trust allows for management of your assets if you become incapacitated.
  • Complexity of assets: If you have significant real estate, investments, or business interests, a living trust can simplify management and transfer.

Our estate planning attorneys can help you make an informed decision about whether you might want to create a Living Trust and if it is suitable for your family’s needs.

Choosing A Successor Trustee

Choosing a successor Trustee is an important decision, as this person will manage your Trust after your death or if you become incapacitated. When making this choice, consider several factors.

The individual should be Trustworthy, possessing integrity and honesty. They should also be competent, with the ability to manage finances and understand the terms of the Trust. Consider their availability. A successor Trustee should be willing and able to dedicate the necessary time and effort. Location can also be a factor, especially if the Trust involves real estate. In terms of family dynamics, it’s wise to choose someone who can remain neutral and fair if conflicts arise. For complex estates, you might even consider a professional Trustee like a bank or Trust company.

The Disadvantages And Risks Of A Living Trust

While Living Trusts offer many benefits, it is important to be aware of potential disadvantages and risks. One is the upfront cost, as creating a Trust is generally more expensive than drafting a Will. Additionally, a Living Trust requires active funding, meaning you must take the step to transfer assets into the Trust; a poorly funded Trust will not achieve its intended purpose. Maryland, as well as Washington, DC have laws protecting the rights of surviving spouses. A Trust must be carefully drafted to ensure compliance with these laws.

Trusts can also be more complex to administer than Wills, especially after death. While they can help avoid disputes, they can also become a source of conflict if not carefully drafted. Finally, unlike Testamentary Trusts, Living Trusts don’t have ongoing court supervision, which can be a benefit in terms of privacy but also a drawback if oversight is desired.

Confidently Plan Your Future

The decision to create a Living Trust is a significant one. At Adams Law Office, LLC, our Living Trusts Attorneys understand the concerns you may have and are dedicated to providing clear, compassionate guidance. Our deep experience in Maryland and Washington, DC Trust law, combined with our client-focused approach, is a winning combination for a Trust solution that will help you achieve your goals. Let us help you navigate the process with confidence. Send an email or call 301-760-2000 today to learn more.