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What is a Living Trust?
what is the difference between a Revocable Trust and an
Irrevocable Trust?
I have a Living Trust - Do I still need a Will?
what is a living will?
WHO CAN I NAME AS MY AGENT?
CAN MY HEALTH CARE PROVIDER BE MY HEALTH CARE AGENT?
What is a Living Trust?
Basically, a Living Trust is a legal instrument (document) that gives control of any property you transfer into the Living Trust to the Trustee (usually you). The Trustee is designated by the Living Trust to control and manage all property that is transferred into the Living Trust.
A Living Trust also has a Successor Trustee(s) who is designated to take over control of any property in the Living Trust upon the demise of the original Trustee. So, say you want to avoid probate to give all your property to your children after your demise, you make yourself Trustee of your Living Trust so that you have control over your property during your lifetime, and make your child(ren) Successor Trustee(s) so that the moment you are gone, the Successor Trustee(s) become(s) the Trustee and hence, have immediate control of your property instead of going through a lengthy and expensive probate process.
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what is the difference between a Revocable Trust and an
Irrevocable Trust?
The short answer is that the owner of a revocable trust can (relatively) easily transfer assets in and out of the trust for as long as that owner is alive. An irrevocable trust cannot be changed at all by its owner, though as with everything, there are exceptions.
The long answer is that a revocable trust, the most commonly created trust, also known as a Revocable Living Trust, allows its owner to changes any of the terms at any time, including successor trustee(s), beneficiaries, what property is in the trust and what is not. The important thing to remember is to always be sure and update your trust whenever you sell a house, car (if it's listed in the trust), any jewelry, art work, etc., in short, anything of value that you want to be sure gets transferred to your heirs tax-free,
rather than become a "hostage" of probate.
An irrevocable trust is often used by individuals who wish to provide heirs with income during their lifetime while giving it to charity after the demise of the heirs, again created to avoid hefty estate taxes. Irrevocable trust are best explained and addressed in consultation with your attorney due to the complications and many loopholes and various ways and means of creating them.
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I have a Living Trust - Do I still need a Will?
As a part of your Living Trust package, we provide you with what is known as a "Pour-Over Will." Basically, this document states that anything and everything you own at the time of your death that is not currently a part of your Living Trust be immediately "poured over" into your Living Trust.
For example, if you bought a house just before you passed away and had not yet had the chance to deed it to your Living Trust, the Pour-Over Will takes of the legalities of making that happen after your demise same as if you'd done it while alive.
If you don't have a Pour-Over Willl, any property not yet transferred to your Living Trust or not in a Joint Tenancy (such as if you own a property with your spouse) will go to your closest relatives in the manner determined by state law in your state of residence - which is why we provide you with a Pour-Over Will.
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what is a living will?
Basically, a Living Will (also known as Directive to Physicians) tells your doctor what your wishes are in the event you were to ever become incapacitated and unable to make and voice your decisions regarding life support. In the Living Will, you name someone to make health care decisions in the event you become unable to do so.
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WHO CAN I NAME AS MY AGENT?
This is an important decision that requires careful thought. A close friend or relative whom you trust with your life (literally!) is usually a good choice. Be sure to discuss it with the individual you have in mind. You want this individual to be the kind of person who would preferably be able to leave emotions aside for a time to make sound decisions about your health. Also, be sure that this individual truly understands your wishes. Do explain the role he or she would have to play in the event things did come to a point where, as your Health Care Agent, he or she would have to make decisions in your place.
It's wise to appoint an alternate agent in the event that the person you named as your primary Health Care Agent is not available when it comes time to make any decisions. Needless to say, you should have the same discussion with this alternate agent that you'll have with the primary agent.
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CAN MY HEALTH CARE PROVIDER BE MY HEALTH CARE AGENT?
The short answer is, NO! This would be considered a conflict of interest. No one who is doctor, director of a health care facility, anyone involved in any capacity in the administration of a hospital, an owner of a health care facility, or psychiatric facility, as well anyone who provides hospice care, runs an hospice, or any kind of nursing home. The only exception is if any of these individual is a part of your immediate family or is married to you.
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