What Is A Living Trust In Georgia?

What Is A Living Trust In Georgia - How To Set Up A Living Trust In Georgia - How Living Trusts Work - How Much Does A Living Trust Cost In Georgia

What is a living trust in Georgia? 

In this article, you’ll learn about: 

  • what a living trust is and how it works
  • living trusts vs wills
  • what are the best types of living trusts
  • how to set up a living trust in Georgia
  • how much a living trust in Georgia costs

Keep scrolling to learn more.

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What Is A Living Trust In Georgia?

A living trust in Georgia is a legal document. 

It allows a person, called the “grantor,” to transfer assets into the trust. 

The grantor names a “trustee” to manage these assets. 

While alive, the grantor can be the trustee. 

The trust details how assets are distributed upon the grantor’s death. 

Beneficiaries receive assets without going through probate. 

This can save time and money. 

Assets in a living trust remain private, unlike probate assets.

How Living Trusts Work

Here is a simple breakdown of how a living trust works in Georgia:

  • Creation: A person, called the “grantor”, creates a living trust.
  • Transfer of Assets: The grantor transfers ownership of assets to the trust.
  • Trustee Role: A “trustee” manages the trust assets. Often, the grantor acts as the initial trustee.
  • Beneficiary Designation: The grantor names “beneficiaries” to receive the trust assets after their death.
  • Bypassing Probate: Upon the grantor’s death, assets in the trust skip the probate process.
  • Distribution: Trust assets then get distributed directly to the named beneficiaries.
  • Revocable vs. Irrevocable: Living trusts can be “revocable” (changed by the grantor) or “irrevocable” (cannot be changed).
  • Privacy: Living trusts offer privacy, as trust details aren’t public like a will.
  • Ongoing Control: Even after transferring assets, the grantor retains control if they’re the trustee.
  • Flexibility: Trust terms can specify how and when beneficiaries receive assets (e.g., at a certain age).

Read More: What Is The Cost Of A Living Trust vs A Will?

Living Trust vs Will In Georgia

Not everyone needs a living trust. 

You should weigh the options that you’re looking for. 

Here are the main differences between a living trust vs a will in Georgia:

  • Definition: A Living Trust is a legal document that places your assets into a trust for your benefit during your lifetime and transfers them to designated beneficiaries at your death. A Will is a legal document that directs who will receive your assets and how after your death.
  • Privacy: A Living Trust is private and not part of the public record. A Will goes through probate and becomes public record.
  • Probate: Assets in a Living Trust can avoid probate. Assets in a Will must go through probate in Georgia.
  • Asset Control: A Living Trust allows for the management of assets if you become incapacitated. A Will has no provisions for incapacity and is only effective upon death.
  • Cost: Setting up a Living Trust is typically more expensive initially. Creating a Will is generally less expensive.
  • Validity After Moving: A Living Trust can be valid across states. A Will might need revising if you move to a state with different laws.
  • Guardianship of Minors: A Living Trust does not allow for the appointment of guardians for minor children. A Will can specify guardians for minor children.
  • Updates: A Living Trust can be amended or revoked during your lifetime. A Will can be updated or rewritten as needed.

Read More: Can You Have Both A Will And A Living Trust?

Types Of Living Trusts

There are several types of living trusts in Georgia. 

And they all serve a different purpose. 

Here are the different types and what they are used for: 

  • Revocable Living Trust: Allows the creator to make changes or revoke it during their lifetime.
  • Irrevocable Living Trust: Once established, it can’t be easily changed or revoked.
  • Charitable Trust: Designed to benefit a specific charity or the general public.
  • Special Needs Trust: Protects assets for a beneficiary with disabilities without affecting their government benefits.
  • Life Insurance Trust: Holds life insurance policies, ensuring proceeds aren’t part of the taxable estate.
  • Qualified Terminable Interest Property (QTIP) Trust: Allows the grantor to provide for a surviving spouse and maintain control over how the assets are distributed after the spouse’s death.
  • Qualified Personal Residence Trust (QPRT): Helps reduce estate taxes by removing the value of a home from the estate.
  • Generation-Skipping Trust: Transfers wealth directly to grandchildren or more remote descendants, avoiding estate taxes on assets passed to the next generation.
  • Pet Trust: Ensures care for a pet after the owner’s death.
  • Family Limited Partnership (FLP): Holds family assets and offers tax benefits while retaining control over the distributed assets.

Benefits Of A Living Trust

A living trust is a legal entity created to hold and manage assets. 

You may create a living trust to achieve specific estate planning goals. 

Here are the key benefits of a living trust in Georgia:

  • Avoid Probate: Assets in a living trust bypass the probate process, speeding up asset distribution to beneficiaries.
  • Privacy: Unlike a will, a living trust isn’t public record, ensuring details about assets and beneficiaries remain private.
  • Flexibility: Especially with a revocable living trust, you can make changes or revoke the trust as needed.
  • Asset Management: If you become incapacitated, your named trustee can manage the trust’s assets on your behalf.
  • Continuous Management: After death, the trust provides seamless asset management without interruption.
  • Tax Advantages: Some trusts, like the irrevocable living trust, can reduce estate taxes.
  • Protection from Court Challenges: Living trusts can be harder to contest than wills, offering more security to intended beneficiaries.
  • Specificity in Asset Distribution: You can dictate exact terms for asset distribution, including staggered distributions or conditions for inheritance.
  • Guardianship Avoidance: If you’re incapacitated, a living trust can prevent the need for a court-appointed guardian.
  • Consolidation of Assets: Trusts allow you to consolidate diverse assets under one management umbrella.

How To Set Up A Living Trust In Georgia

Here is how to create a living trust in Georgia:

  • Choose Your Trust Type: Decide between a revocable (can change) or irrevocable (can’t change) trust.
  • Select a Trustee: Pick someone to manage the trust. You can choose yourself.
  • Create the Trust Document: Write out terms like beneficiaries, assets, and distribution details.
  • Notarize the Document: Get the trust document notarized in Georgia.
  • Transfer Assets: Move your chosen assets into the trust’s name.
  • Keep the Document Safe: Store the original trust document securely.
  • Review Often: Check and update the trust as life changes.

Read More: How To Transfer Property Into A Living Trust In Georgia

How Much Does A Living Trust Cost In Georgia?

Here is how much a living trust costs in Georgia based on the complexity of your living trust:

  • DIY Living Trust: $50 – $350
  • Simple Trust: $1,000 – $3,000
  • Complex Trust: $5,000+

Read More: How Much Does A Living Trust Cost?

Get A Living Trust Set Up

If you want help from a trust law firm, fill out the form below. 

At The Hive Law, we understand the importance of:

  • protecting your hard-earned assets 
  • ensuring your family’s future
  • not losing everything to creditors and lawsuits
  • properly (and legally) distributing assets 

We only accommodate a limited number of clients each month.

So don’t miss your opportunity to work with our trust fund lawyers.

Benefits of our trust services:

  • Tailored solutions to fit your unique needs and goals
  • Expert guidance in navigating complex tax and legal matters
  • Preservation of your wealth for future generations
  • Streamlined asset distribution according to your wishes

Avoid the pitfalls of inadequate estate planning strategies:

  • Creditors seizing your assets
  • Lawsuits jeopardizing your family’s financial security
  • Family disputes over inheritance
  • Costly and time-consuming probate processes

Talk soon.

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