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Do I need a trust in Alabama?

Trusts of any kind are never legally required in the state of Alabama or anywhere else, for that matter. However, its a good idea to create a revocable living trust to add to your will to protect certain assets from the probate court.

What are the disadvantages of a trust?

Drawbacks of a living trust The most docHub disadvantages of trusts include costs of set and administration. Trusts have a complex structure and intricate formation and termination procedures. The trustor hands over control of their assets to trustees.

What happens to a trust when someone dies?

If you put things into a trust, provided certain conditions are met, they no longer belong to you. This means that when you die their value normally wont be counted when your Inheritance Tax bill is worked out. Instead, the cash, investments or property belong to the trust.

What kind of trust lasts forever?

A perpetual trust is irrevocable. Once the Trust has been set up, and assets have been transferred into the Trust, then the Trustor cannot change their mind. Therefore, an individual setting up a perpetual trust should be careful not to use any property they might need during their lifetime to fund the Trust.

How does a trust work in Alabama?

An Alabama living trust changes the ownership of your property during your lifetime. As part of your estate planning, you transfer property to the trust which then owns it until your death, when it is distributed to the people you choose. A living trust is popular because they are an alternative to probate.

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