- What happens if I don’t have a Will?
- What is the difference between a Living Trust and a Will?
- Is estate planning only for the wealthy or those with large estates?
- Can the Federal Government do away with the Revocable Living Trust and change the law?
- Why didn’t my attorney tell me about the Living Trust?
- Is creating a Will a good idea?
- What is Succession?
- Can I be my own Trustee?
- What can I do with the assets in the Revocable Living Trust?
What happens if I don’t have a Will?
If you die without a Will, then the state automatically provides one for you; it is much more complex for your survivors, and the distribution of your assets may not be as you desired.
What is the difference between a Living Trust and a Will?
Most people have the “Will syndrome,” which means that they believe that all of their assets must be distributed upon their death. Such a belief is correct for a Will, but not for a Living Trust. When you have a Will, once probate is completed, your assets must be immediately distributed outright, since there is no legal entity to hold your assets. However, with a Living Trust, the assets may remain in the Trust almost indefinitely, since the Trust is a legal entity and “lives on” after a person’s death.
Is estate planning only for the wealthy or those with large estates?
No. Larger estates may need greater degrees of estate planning but the average estate can also greatly benefit from estate planning. The probate codes in most states encompass almost all estates; unless people take appropriate estate-planning measures (placing their assets in a Living Trust), they will end up giving away part o f their hard earned estates by paying unnecessary probate fees. Even smaller estates should consider the numerous advantages of the Living Trust.
Can the Federal Government do away with the Revocable Living Trust and change the law?
The concept of the trust has been around longer than our Federal Government. A lot of Congressmen have a trust. The only thing the Federal government has done is change the Federal Estate Tax Exemption Law by changing the tax rate required to be paid.
Why didn’t my attorney tell me about the Living Trust?
The best answer to this question is to repeat the words of an attorney “In most states, the only justification for not having Trust is that the attorney will not get his probate fee.” Remember that 8 percent to 10 percent of the gross estate is charged each time an individual dies-which is a lot of money! Many practicing attorneys today are not aware of the alternative to probate offered by the Living Trust.
Is creating a Will a good idea?
Many people plan their Estates by creating a document called a Last Will and Testament. A Will is a legal declaration of how someone wants his or her assets distributed after death. Unfortunately, a Will is a very poor Estate Planning document in many cases.
What is Succession?
Succession is the mandatory court proceeding which completes all the legal and financial matters of the descendant. If there is a Will, the Succession Court reviews it and rules on its validity. It pays off all creditors and inventories all assets. Finally, it changes the title of all the assets from the name of the decedent to the names of the beneficiaries named in the Will. This procedure usually takes one to three years.
Can I be my own Trustee?
Yes. If you are competent to handle your financial affairs now, there is no legal reason why you cannot be the Trustee of your own Revocable Living Trust. In fact, most Revocable Living Trusts have the people who created them acting as their own Trustees. If you are married, you and your spouse can act as Co-Trustees.
What can I do with the assets in the Revocable Living Trust?
You can do anything you want with the Trust assets. When you set up the Revocable Living Trust, you are transferring the title of all of your assets from you as an individual, to yourself as the Trustee of your Trust. You then must manage the property for the benefit of you as the Beneficiary. This means you will have absolute control over the assets of your Trust. If you want, you can spend, save, invest, or give the assets away at your discretion. There are NO restrictions on what you can do with the assets in your Revocable Living Trust. Moreover, if you don’t like the terms of the Trust, you can amend it or revoke it at any time without penalty.