When you hear the word "trust," you may assume that it implies a sense of permanence. This can be intimidating, but all trusts are not created equal. There is a type of trust called a revocable living trust that gives you a great deal of flexibility, and these trusts can provide value for a wide range of people. A revocable living trust is a very versatile estate planning document, and this versatility is part of the appeal. Once you convey assets into the trust, things are not … [Read more...] about Should I Change My Living Trust if I Acquire Assets?
Living Trusts
What Is the Difference Between a Living Will and a Living Trust?
There can be some confusion with regard to estate planning terms that sound similar. We try to clear some things up on our blog from time to time, and with this in mind, we will look at the difference between living wills and living trusts in this post. Advance Directive for Health Care Most people have heard of the estate planning document called a last will or last will and testament. Since this type of will is used to transfer property, many people assume that a living will does the … [Read more...] about What Is the Difference Between a Living Will and a Living Trust?
Why Is a Living Trust Better Than a Power of Attorney?
People who start to scratch the surface with regard to estate planning often come away with some misconceptions because they have incomplete information. With this in mind, we will draw some distinctions between powers of attorney and living trusts in this blog post. Representation When you create a power of attorney, you are giving someone else the power to act on your behalf in a legally binding manner. In the field of estate planning, durable powers of attorney are used to … [Read more...] about Why Is a Living Trust Better Than a Power of Attorney?
How Does a Living Trust Terminate?
Before you make any final estate planning decisions, you should understand how a revocable living trust could be beneficial to you. People who are not extraordinarily wealthy sometimes overlook trust creation, because they think trusts are only useful for high net worth families. In fact, this is not the case with a revocable living trust. There are multiple different benefits that you derive when you use a revocable living trust as a vehicle of asset transfer. Probate … [Read more...] about How Does a Living Trust Terminate?
How Do I Fund My Revocable Living Trust?
A revocable living trust can be a good choice if you want to maintain control of your assets while you are living as you simultaneously facilitate fast and effective postmortem asset transfers. As the person creating the trust, you can initially act as the trustee. The trustee is the person who handles the business of the trust, so you are the controller while you are alive and well. You can also act as the beneficiary initially, so you are free to receive distributions from … [Read more...] about How Do I Fund My Revocable Living Trust?
Does a Revocable Living Trust Reduce Income Tax Responsibility?
Revocable living trusts are very useful on a number of different levels. However, there is no estate planning device that is an absolute cure-all. With this in mind, let's look at these trusts in detail. Probate Avoidance The biggest benefit that you derive when you create a revocable living trust is the avoidance of the probate process. You probably want your heirs to receive their inheritances in a timely manner. If you use a last will to transfer your personally … [Read more...] about Does a Revocable Living Trust Reduce Income Tax Responsibility?
Should I Use a Corporate Trustee?
If you are not extremely wealthy, you may assume that you should use a last will as a vehicle of asset transfer rather than a trust. This is a popular misconception, but it is just that, a misconception. There are different types of trusts. Indeed, there are trusts that are used by high net worth individuals who are exposed to the federal estate tax. This tax is potentially applicable on asset transfers that exceed $5.34 million. (This is the figure that is in place for … [Read more...] about Should I Use a Corporate Trustee?
Are Trusts Only For the Rich?
There are certain myths that circulate when it comes to estate planning, and you can overlook viable solutions when you buy into these misconceptions. One of these notions is the idea that all trusts are only useful for those who are very wealthy. Let's look at the facts. Estate Tax Efficiency and Asset Protection People who have been very successful from a financial standpoint may be exposed to the federal estate tax. The federal estate tax has a $5.34 million exclusion in 2014. If the … [Read more...] about Are Trusts Only For the Rich?
When Will My Heirs Receive Their Inheritances?
There are various different ways to get assets into the hands of your loved ones after you pass away. The most commonly utilized estate planning document is the last will. You may assume that the heirs to your estate receive their inheritances right after you die when you use a last will to state your final wishes. Unfortunately, things don't happen very quickly when you use a last will to facilitate the distribution of your personally held assets. Before inheritances can be distributed, the … [Read more...] about When Will My Heirs Receive Their Inheritances?
Revocable Living Trusts: What Is a Successor Trustee?
If you are not particularly wealthy, you may assume that you should use a last will to facilitate the transfer of your monetary assets after you die. You can go this route if you want to, but the postmortem process is something to take into consideration. The executor that is named in the will would have to admit the will to probate. This is a legal process, and it comes with a number of pitfalls. Probate can be costly, it is time-consuming, and probate records are available … [Read more...] about Revocable Living Trusts: What Is a Successor Trustee?
