A trust is a legal document in which you give control of your assets to a trustee to manage those assets for your benefit during your lifetime, and then to distribute them after your death. A trust can be expensive to set up and maintain. You need to remember to transfer your assets into it.
The transfer of assets into a trust might have negative consequences if you need long-term care Medicaid.
The National Consumer Law Center provides Tips for Seniors on Living Trusts.
Not everyone needs a living trust. A living trust may be a good idea for some people, but not for other people. You should consult with an attorney or financial planner about whether or not a living trust is right for you. Factors to consider in deciding whether you need a living trust include:
- the value of your assets
- the cost of setting up the trust and maintaining the trust
- your wish to keep things private and to avoid Probate Court