Living Trusts are not just for the wealthy!

It’s a common misunderstanding that living trusts are only utilized by the wealthy.  But many people can actually benefit by creating a living trust.

You may assume that your assets too modest, or that you plenty of time to make arrangements for events that are still years away.  But even if you possess a small estate, a living trust can be a valuable estate planning tool.  By laying a foundation for the future now, you’ll be doing both yourself and your family a favor. 

What is Probate?

Probate is the legal process through which the court “proves a will” and assumes jurisdiction over the assets of someone who has died.  The probate process can be expensive and time consuming.  The main expenses are attorney, executor, appraisal, and court fees.  The fees may be substantial and vary depending upon the complexity of the estate.  Probate may take months or even years to complete and may become a tremendous burden for your loved ones.

Keeping Control with a Revocable Living Trust

A revocable living trust is a legal contract that holds and manages your assets.  It includes your instructions for what you want to happen to your assets – just like a will.  But, unlike a will, a funded living trust avoids probate.  It also prevents the court from controlling your assets if you become incapacitated.

Advantages of a Funded Living Trust

• Avoids Probate
• Prevents court from controlling assets at incapacity
• Combines all your assets under one plan
• Assures maximum privacy
  Rapid distribution of assets to beneficiaries
• May reduce or eliminate federal estate taxes
• Easy to establish and maintain
  Revocable during your lifetime
• Difficult to contest
• Can protect dependents with special needs
• Prevents potential problems of joint ownership
• Peace of mind

Disadvantages

The initial costs of setting up a trust are usually higher than those for writing a will.  But ultimately, your beneficiaries may save thousands when compared to the probate costs.

Here’s What You’ll Receive in Your Revocable Living Trust Portfolio   

Avoids probate, conservatorship and, in some cases, reduces federal estate taxes.

Transfers assets held outside of the trust into the trust.

TRUST TRANSFER DOCUMENTS
Deeds, forms, etc. needed to transfer your property into the trust.

CERTIFICATION OF TRUST
Provides a summary copy of the trust for easy use in dealing with banks, brokers insurance companies, etc.

LIVING WILL
Authorizes medical personnel to remove life support systems, if you so desire, in the event of a terminal illness or injury.

DURABLE POWER OF ATTORNEY
Authorizes your agent to place property into the trust in the event of your absence or disability so that the trustee can manage it.

MEDICAL POWER OF ATTORNEY/DESIGNATION OF HEALTH CARE SURROGATE
Authorizes your agent to make health care decisions should you become incapacitated.

INSTRUCTIONAL MATERIALS
Assists you in gaining a thorough understanding of your trust and all documents contained in your portfolio.

SPECIAL NEEDS TRUST
For parents who have a disabled child, a special needs trust can protect your child’s inheritance.  The establishment of special needs trust provides benefits that supplement, but do not supplant, government entitlements like Medicaid and supplemental security income (SSI).  Assets that are earmarked only for supplemental needs, such as travel, recreation, education and rehabilitation, will not disqualify the disabled person from receiving primary support from the government.