Planning Ahead Article


Revocable Living Trust

A trust is a contract between yourself as the Trustmaker/Grantor/Settlor/Trustor and yourself (typically) as Trustee (the person that manages the trust). You can change or revoke the trust at any time that you have capacity.


You can specify who determines your disability. You can set out the terms of the trust to handle distribution while you are alive and well, alive and disabled, and not alive. The trust handles both disability and providing for your beneficiaries. You can set the terms for how and when your beneficiaries receive assets from the trust. If the beneficiary has disabilities, a special needs trust may be appropriate.


You may want assets held in trust for a minor beneficiary. If a beneficiary is going through bankruptcy or has creditor issues, you may want to draft the trust so that the beneficiary cannot demand the money from the Trustee. Sometimes trusts are set up to provide protection in event of divorce (if the beneficiary receives the money outright and then commingles it with spouse, it can be hard to trace what is left, if anything, if the inheritance and amounts not traceable are included in what is divided in the divorce).


Consult an estate planning attorney to review your goals/wishes and the various options in this area.


Make sure you properly fund your trust after signing it and review all beneficiary designations to make sure they meet your wishes. It will be frustrating for your Trustee to not only have to do the trust administration but also the probate because you “forgot” to change title on an asset into your trust.


Comments:

On 3/1/08
James said
WE have our Trusts and wills Made up, WE NEED to Know how to FUND these instruments, thru the Govt, without going thru Lawyers, we have no extra money and want to do the process ourselves..

QUESTIONS

  • My mom and stepdad have a trust that was set up by their insurance broker. I am the trustee and the trust states that all assets are to be sold and split equally between the 6 children. This is a blended family. Do they need a will in addition to the trust?
  • When and how to contact a fiduciary.
  • Where can I get A template to revise my Living Trust & Power of Attorney?
  • I would like to have assistance with filling out advance directives. Can you help?
  • Do I need a will?
  • What makes a Will valid in the state of Arizona
  • I live in a manufactured home on my daughers land. In lieu of space rent, I "sold" my trailer and car to her back in 2010. It is now jointly titled. When I die, I will only have household possessions, clothes, some jewerly. My entire possessions if sold at yard sale prices would probably net less than $2,000. Would my daughter have to do a Small Estate Affidafidt for my few earthly possessions? The cost of filing and hiring a lawyer would surpass the value. I may have to go on Medicaid as well- do they go after personal possessions (not property)? I would hate to have to cause such a burden for such few possessions. Thank you!
  • When a person passes away are the outstanging debts,like credit cards passed on to their adult children?
  • My mother is the guardian for my brother, who has Down's Syndrome. He is dependent on her for many of his needs. How can she plan ahead in terms of his care and guardianship? In other words, can she put that in her will or does she need to set something up in the courts? What happens if she does not? Kindly,
  • How does a disclaimer of rights of survivorship in jointly held property work?

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