This question stems from a common misconception. A lot of people think that all trusts are only useful for people who are extremely wealthy, but this is not the case.It is true that high net worth individuals use trusts of various kinds to reduce their estate tax exposure. However, these would be irrevocable trusts that involve permanently surrendering ownership of the assets in the trust.A living trust is a revocable trust, so the assets would still be within your control. This type of trust would not be useful for wealthy people who have estate tax concerns, but a living trust can be the ideal choice for many others.
One reason why a living trust may be preferable to many people is because it would allow for asset distributions outside of probate. Probate is a costly and expensive legal process, and it would enter the picture if you use a last will to state your final wishes.Aside from this, there are several other benefits. One of them is the fact that you can include a spendthrift provision to protect a loved one who may not be good at managing money.Plus, a living trust can be a very efficient estate planning solution for married couples. These are just a handful of the advantages.
This is another one of the positives that go along with the creation of a revocable living trust. If you create a living trust, you could act as the trustee, which is the trust administrator, while you are alive.
Yes, you can convey additional property into the trust at any time, and you can change the terms. You can even revoke it completely.
This is entirely up to you. In the trust declaration, you name a successor trustee. It can be someone who you know personally, but many people use a professional fiduciary like a bank or a trust company. The ideal choice will depend upon the circumstances. Your estate planning attorney can help you decide whom to choose.
You can name a disability trustee when you are setting up the trust. It can be the same individual or entity who would administer the trust after you pass away, or it can be someone else.
No, they would not be subject to regular income taxes. The reason why is because you already paid taxes on your income, and you are in essence leaving the remainder to your loved ones.
You could include a document called a pour over will in your estate plan to account for this possibility. If you have assets in your direct personal possession at the time of your death, the pour over will would allow these assets to be absorbed by the trust.
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Now that you know a little bit about the value of a revocable living trust, you may be ready to take the next step. We would be more than glad to gain an understanding of your situation, answer all of your questions, and make the appropriate recommendations.
If you decide to move forward, we can work with you to create a custom crafted estate plan that is ideal for you and your family. To set the wheels in motion, you can send us a message through our contact page or call us at 913-262-2000.