Living under an agreement trust can be an excellent way to secure your assets and provide for your heirs after your passing. But what exactly is an agreement trust, and how does it work?

An agreement trust, also known as a living trust or revocable trust, is a legal agreement between the trustee (the person who holds the assets) and the beneficiaries (the people who will receive the assets). The agreement outlines how the assets will be managed and distributed during the lifetime of the grantor (the person who creates the trust) and after their death.

One of the primary benefits of an agreement trust is that it allows the grantor to avoid probate, which is the legal process of determining the validity of a will and distributing assets after a person’s death. Probate can be a lengthy and expensive process, and it is often difficult for heirs to access their inheritance during this time. With an agreement trust, the assets are immediately distributed to the beneficiaries according to the terms of the trust, without the need for probate.

Another benefit of living under an agreement trust is that it provides greater privacy than a will. Wills become public record once they are filed with the court, which means that anyone can access them. An agreement trust, on the other hand, is a private document that is not filed with the court and does not become public record.

Living under an agreement trust also allows the grantor to have greater control over how their assets are managed and distributed. The grantor can specify how the assets will be used while they are still alive, and they can also create conditions for how the assets will be distributed after their death. For example, they may specify that a certain amount of money will be distributed to a beneficiary each year, or that the assets will be held in trust until the beneficiary reaches a certain age.

It is important to note, however, that living under an agreement trust does not protect your assets from creditors. If you have outstanding debts, they may still be able to collect against the assets in your trust. Additionally, creating an agreement trust can be a complex process, and it is important to work with an experienced estate planning attorney to ensure that your wishes are properly documented and legally binding.

In conclusion, living under an agreement trust can be a valuable tool for protecting your assets and providing for your heirs. It allows you to avoid probate, maintain privacy, and have greater control over how your assets are managed and distributed. However, it is important to carefully consider your options and work with a qualified professional to ensure that your trust is properly created and executed.