12/3/2023 0 Comments Living trust openoffice templates![]() Separation of assets- When a couple has significant assets before getting married, placing assets in trust can help avoid the assets from becoming community property.If you own real estate in more than one state, placing the property in trust can avoid the cost and hassle of multiple probate proceedings. Probate proceedings- The expense, burden and delay of probate proceedings may be avoided since property owned by the trust passes outside of probate.Tax Liability- A properly structured credit shelter trust may minimize the estate taxes that might otherwise be due on large estates.Incapacity- If you have an accident or become incapacitated, the trustee can mange your financial affairs without the need for creating a guardianship or conservatorship.Spendthrift protection- If you die leaving minor children or other financially irresponsible beneficiaries, the trust may continue and have the assets managed by the trustee until the beneficiaries are sufficiently capable of managing the assets themselves.Because a trust document isn't a matter of public record, it may also be more difficult for creditors to discover who inherits the property and make a claim on it. Asset protection- Property placed in an irrevocable trust may be placed beyond the reach of creditors.Unlike a will, the terms of the trust do not become a public document in the probate process. When a will is probated, an inventory of your assets and debts becomes a matter of public record once filed. Because assets are owned in the named of the trust, trusts provide a level of privacy for ownership. Privacy- The trust document is a private document which is not required to be filed as a public record.Some of the advantages when you make a living trust include: Advantages of a Living Trust Revocable Living Trust GeorgiaĪ living trust is a very effective estate planning tool for many individuals. Even if you don't have a large estate, they can serve many purposes, such as ensuring that your pets are cared for according to your instructions to the trustees, protecting governments benefits or eligibility for Medicaid, or allowing you to preserve confidentiality in your financial affairs and choice of beneficiaries. Living trusts provide a way to protect and manage your estate even after your death or incapacity. When your estate is distributed under a will, you lose control over what happens to it once received by the heirs. Living trusts may provide many benefits, such as avoiding probate, protecting assets from creditors, keeping your financial affairs confidential, minimizing taxes, delay, and legal expenses, and more, when used properly. Some types of irrevocable trusts include an irrevocable life insurance trust, irrevocable family trust, Medicaid income trust, special needs trust, and charitable trust. Therefore, the assets and income are no longer taxable to the grantor, nor do they become part of the settlor's taxable estate when he or she dies. By transferring assets into the trust, the creator of the trust gives up control and ownership. An irrevocable trust can't be changed or terminated without the consent of the beneficiaries.Revocable trusts are also referred to as grantor trusts, and therefore the income is taxable to the grantor and any assets in the trust when the grantor dies become part of the grantors' taxable estate. The settlor may reserve the right to take back any trust property and remaining revenues. A revocable trust may be changed or terminated by the grantor of the trust.There are two basic categories of living trusts: The trustee manages the trust property for the benefit of the beneficiaries, according to the terms of the trust document. ![]() Assets are transferred into the trust belong to the trust and are managed by the trustee. To create a living trust, the owners of the trust (also called the grantors or settlors) make a living trust document and transfer real property or other assets to the trust. The grantor may also name successor trustee if the original trustee dies or is unable to serve, as well as successor beneficiaries. The same individual may be the grantor, trustee and beneficiary. A trust document is a method of holding property in a fiduciary relationship for the benefit of the named beneficiaries.
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