Should one use a living trust for estate planning?
Yes, and you probably should use a living trust in your asset protection
plan. The living trust can own FLPs, LLC memberships or other entities
that do protect assets. The idea is to use corporations, trusts, FLPs,
LLCs and other legal entities to protect your assets, such as real estate,
stocks, bank accounts, and so forth. However, you or your family wouldn’t
personally own these entities. Your revocable living trust would own these
entities so you can avoid probate on these entities when you die. You
then get the best of both worlds. You have a protective entity to shield
your assets during your lifetime, and the living trust will possibly save
your family estate taxes and probate fees when you die.