Living trust is an arrangement created during a person’s life, in which the trustee holds legal title to assets for a beneficiary. An individual may be the trustee of their own living trust. A living trust provides a way to avoid probate.
A living trust transfers assets from the grantor, who is the person funding or contributing assets, to the trust. With living trusts, grantors frequently name themselves as the trustee, who serves as the manager of the trust. In this regard, there is no practical difference between managing the trust and owning the assets directly. A primary advantage of a living trust is providing organization and contingency plans for the financial affairs of the grantor. This is accomplished by naming an alternative trustee in the event the grantor should die or is no longer able to manage the trust in his capacity as trustee. Similar to a will, a living trust dictates the grantor’s wishes and thus avoids the need for any court intervention. The assets in the trust pass directly to the named beneficiaries upon the death of the grantor. Different from a will, a living trust does not wait until the grantor is deceased in order to become effective. Living trusts are typically revocable, meaning that the grantor may modify or dissolve the trust at any time. In contrast to an irrevocable trust this feature does not aid in minimizing income and/or estate taxes as the trust’s assets are still considered property of the grantor, and taxed as such.
Realized1031.com is a website operated by Realized Technologies, LLC, a wholly owned subsidiary of Realized Holdings, Inc. (“Realized”). Securities offered on this website are offered exclusively through Thornhill Securities, Inc., a registered broker/dealer and member of FINRA/SIPC("Thornhill"). Investment advisory services are offered through Thornhill Securities, Inc. a registered investment adviser. Thornhill Securities, Inc. is a subsidiary of Realized. Check the background of this firm on FINRA's BrokerCheck.
Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment.
Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested.
This site is published for residents of the United States who are accredited investors only. Registered Representatives and Investment Advisor Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of services referenced on this site are available in every state and through every representative listed. For additional information, please contact 877-797-1031 or firstname.lastname@example.org.