Living Trust Vs Will Michigan

Here are some key differences.

Living trust vs will michigan.

Still if you re planning an estate you should know about the michigan estate tax and the michigan inheritance tax estate tax is levied on the estate of the deceased before assets are passed on to heirs. It is called a living trust because it is created and takes effect during the maker s lifetime in contrast to a will which does not take effect until after the death. You can move assets in or out of it or even cancel the trust completely. Since the trust avoids probate the contents of the transfer stays private.

With a living trust you can be the trustee the manager of the assets and also maintain the power to make any changes you want to the trust. Michigan has a simplified probate process for small estates under 15 000. Most living trust transfers take place in the privacy of your attorney s office shortly after a death. Living trusts and taxes in michigan.

When analyzing a will vs trust this is an important question. How does a living trust stack up against a will. A will is probated and made part of the public record. Living trusts are a popular choice because unlike with a will the assets in the trust do not have to go through probate.

If you have nosy relatives who want to know how things were distributed a living trust protects that information unless the trustee decides to share it. A last will and testament and its contents on the other hand are made public only when they enter probate court usually within a few weeks after there has been a passing. A living trust designates a trustee to manage assets for the beneficiary while the grantor is still alive. A revocable living trust is created for the purpose of holding ownership to an individual s assets during the person s lifetime and for distributing those assets after death.

Trusts are also much more difficult to contest than wills providing added security that your wishes will be carried out. Trustees with fiduciary duty manage trusts according to the beneficiary s best interests. A living trust is not a public document like a will. A living trust likely won t impact your taxes.

A trust is an estate planning instrument that allows the settlor aka the person with the assets to nominate a trustee who will hold the assets for the beneficiaries of the trust. A trust remains private and does not need court approval and is not made public. A living trust is a private document which does not require any court intervention. A trust allows the settlor to dictator how and when the the assets will be invested distributed to the beneficiaries etc.

A living trust can help you avoid probate in michigan but a will cannot.