Many people are talking about “Generational Wealth” these days, but do we really know what that means and what it takes to create generational wealth. Generational Wealth typically begins through homeownership and the ability to create equity from your home, and the ultimate goal of passing your home down to the next generation. You can create generational wealth while you are still living. We will bring you a series of educational articles and resources, related to Generational Wealth, including Trusts, Business Ownership, Homeownership, and smart investing.
Below is information regarding the creation of a Living Trust. You do not have to be wealthy to create a Living Trust, but this is a great starting point on your quest to generational wealth.
It’s an estate planning epidemic. So many successful parents we meet have children who are poor at handling money, have not achieved significant success in life where they have any experience in handling money, or they simply just spend money recklessly. How can you address this mid-life crisis?
The answer is called a Living Trust. The trust is a legal entity that hold assets, primarily a house, for a beneficiary but managed by a trustee who is a responsible adult. It helps ensure that assets are protected, managed, and transferred according to your wishes, no matter what shortcomings or inadequacies exists.
When it comes to home ownership and asset preservation, a living trust is a legal arrangement established by an individual during their lifetime to protect their assets and direct their distribution after their death.
Here are some reasons why you should seriously consider a living trust:
It is an estate planning tool that can help family members and beneficiaries avoid a lengthy, public, complex, and very expensive, probate process. It is one of the best methods in passing on your generational wealth and legacy.
Asset Protection: it avoids legal challenges, and potential creditors. It provides a controlled way to manage and distribute assets to your beneficiaries.
Probate can be a time-consuming and expensive process. A living trust allows assets to pass directly to beneficiaries without going through probate court, making the transition smoother and potentially faster. Even if you have a will, it does not protect you from probate court.
Living trusts provide greater privacy compared to wills, as they typically remain private and do not become part of public records. This protects against deed thefts and false claims.
Living trusts can include provisions for managing and distributing assets in case of the grantor’s incapacity, ensuring that financial matters are handled smoothly without court intervention.
Real Estate in Multiple States
If someone owns property in multiple states, a living trust can help avoid the need for multiple probate proceedings, streamlining the asset transfer process.
By creating a living trust, individuals can have greater control over their assets, reduce administrative burdens for their loved ones, and ensure that their wishes are carried out effectively.
Information in this article provided by Patrick Toussaint, who owns multiple income producing properties, and is a resource when it comes to Living Trusts, Wills, Power of Attorney, and Health Care Proxy.
Call Patrick for a free consultation at 646-372-3746 of email at email@example.com.