From Your Heart to Their Hands: A Guide to Setting Up a Living Trust

April 23, 2024

“In the blueprint of your legacy, estate planning is the architect, and trusts are the reliable foundation upon which your dreams stand tall for generations to come. Embrace the power of preparation and protect what matters most- Your loved ones.’’

-Adelekan Balogun, Coronation Trustees

Meet Martha, a free spirit with a paintbrush in one hand and a salty breeze tousling her hair in the other. A whirlwind of creativity, she built a successful career as an artist, her studio a haven of vibrant colours and cherished memories. Over the years, she’s collected a treasure trove of her own paintings, each a window into her soul. Nestled amongst them are a few cherished pieces inherited from her parents, whispers of a rich family history. But Martha’s true sanctuary is her cosy beach house, a place where the waves lull her worries away and inspiration crashes in like the tide.

Life, however, has a way of reminding us that even the most vibrant moments eventually turn to twilight. A conversation with a friend, battling the legalities (probates) after her father’s passing, throws a bucket of reality check over Martha’s carefree spirit. Suddenly, estate planning isn’t just a buzzword for stuffy lawyers, it’s a way to protect the legacy she’s built, a way to ensure her treasures find their rightful homes.

Martha doesn’t want her children, Sarah, the meticulous accountant, and Benjamin, the globetrotting photographer, to be tangled in legal red tape after she’s gone. She envisions Sarah inheriting the beach house, a place of grounding and stability, a constant reminder of the calming rhythm of the ocean. Ben, on the other hand, is a kindred spirit, his lens capturing the fleeting beauty of the world, much like Martha’s brushstrokes. To him, she bequeaths her collection, a way for her artistic flame to flicker on through his photographs. But there’s one condition: Ben must hold an exhibition showcasing his work alongside his mother’s, a final collaboration that transcends time.

Meet Martha…

Enter the Superhero: The Living Trust

This is where a Living Trust swoops in, cape billowing (figuratively, of course). Think of it as a secure vault, meticulously guarding your valuables – your house, your investments, your most prized possessions. A Living Trust holds onto your assets while you’re alive and distributes them according to your wishes after you’re gone, unlike a simple Will, it packs a whole lot more punch.

‘The Trust Quartet’: Guardians of your Legacy and Wealth

The Settlor/ Grantor (You): The mastermind, the artist who establishes a trust and transfers assets into it, the masterpiece of your estate plan.
The Trust Assets: the property or resources held within a trust to be managed by the Trustee.
The Beneficiary (Your Children, Your Niece, That Quirky Neighbour Who Always Waters Your Plants): The lucky recipients who inherit your treasures.
The Trustee (A Trusted Friend, Family Member, or a Professional Organization): The guardian of your vault, ensuring your wishes are carried out flawlessly.

Why a Living Trust is Your Secret Weapon

Living Trusts aren’t for everyone, but for those who want to avoid the probate process – a lengthy and often public ordeal – they’re a game-changer. Plus, they offer some cool perks:

Privacy Matters: Unlike Wills, which become public record during probate, Trusts keep your financial details under wraps. Your financial masterpiece remains yours to share, not the world’s.
Control Over Distribution? We Got You Covered: Want your niece to get your vintage car collection only after she masters the art of parallel parking? No problem! Trusts allow you to set specific conditions, ensuring your assets end up in the right hands, doing the right things.
Life’s a Curveball: What if you become incapacitated? A Living Trust can designate someone to manage your assets if you can’t, ensuring your legacy is protected even if life throws you a curveball.

Introducing Living Trust: The Superhero

Trust vs. Will: The Ultimate Throwdown

So, which reigns supreme, the Will or the Living Trust? Well, it depends on your kingdom. Wills are great for straightforward estates, but if your realm is a bit more complex, a Trust offers more control and flexibility. Think of it as the difference between a charming cottage and a fortified castle – both provide shelter, but one offers a bit more security.

The Takeaway: Peace of Mind is Priceless

Estate planning isn’t a one-size-fits-all solution, but a Living Trust can be a powerful tool for ensuring your wishes are carried out smoothly and efficiently. Whether you choose a Will, a Trust, or a combination of both, taking the time to plan for the future brings peace of mind and protects the ones you love. After all, wouldn’t you rather your legacy be a masterpiece, as against a messy court case?

Coronation Trustees can be your partner in navigating the complexities of estate planning. Contact us today at trustee@coronationnt.com to discuss your unique situation and explore how a Living Trust can benefit you.