Why Do You Need A Living Trust
Posted on April 18, 2008 - Filed Under Legal and Law | Leave a Comment
You may have heard of a living trust, but maybe you think that only rich people need or can create such a thing. Actually, a living trust is relatively easy to create, and there are very valid reasons why you and I should consider creating one. A living trust effectively empowers your designated trustee to manage the trust’s assets and property for the benefit of you and your family. The trustee can be anyone you choose, including yourself! You will also be able to appoint a successor trustee, much like an executor of a last will and testament, who will see that your wishes are carried out.
Read More..>>Wills, Trusts And Durable Powers Of Attorney
Posted on March 30, 2008 - Filed Under Legal and Law | Leave a Comment
1. California Law
This document discusses California law only. Each state has its own laws for dealing with wills, trusts and powers of attorney.
2. Durable Power of Attorney for Finances
a. Durable powers of attorney for finances allow someone else to handle your finances for you. They come in two basic types:
i. A “springing” durable power of attorney allows your agent to handle your financial affairs (such as paying bills) if you become incapacitated.
(1) If you regain capacity, your agent loses this power – unless and until you become incapacitated again.
Read More..>>Living Trust Forms
Posted on March 25, 2008 - Filed Under Legal and Law | Leave a Comment
Living trust is a very popular way for tax planning and avoiding a probate which is made necessary due to the fact that some state governments have passed laws that the succession of property can only take place after probate.
A probate is basically meant to ensure that if the person who died, owes anything to anyone, those dues must be cleared. In most cases, a probate is nothing more than a formality, an unnecessary yet costly formality. To avoid this, most people form living trust. This way, they also get some tax benefits. Making a living trust is a rather complicated procedure because a number of living trust forms need to be filled in. The living trust forms must be filled with proper care because they are legal documents and if ignored, any mistake in living trust forms can lead to grave consequences.
Read More..>>What Happens To My Trust When I Die
Posted on March 8, 2008 - Filed Under Legal and Law | Leave a Comment
Question: I have my bank accounts (CD’s Savings etc) in the __________ Revocable Trust. My self and my friend are trustees. If I die, does the Trust “disappear” and are my accounts automatically distributed to the surviving trustee or will the trust as a taxable entity still exist? M.N.
Answer: Dear M.N. - The short answer to your question is, it depends upon what the trust instrument says.
Unfortunately, we often get caught up in the legal ramifications of a trust and lose track of the fact that it is nothing more than someone holding your property for the benefit of someone else.
Read More..>>Advance Health Directive: The Living Will And The Power Of Attorney
Posted on February 24, 2008 - Filed Under Legal and Law | Leave a Comment
A living will, also called will to live, is one type of advanced health care system, or advanced health care principle. It often goes along with a specific type of power of attorney. These are legal tools that are usually witnessed or notarized.
A living will usually covers specific directions as to the course of treatment that is to be taken by caregivers, or, in particular, in some cases denying treatment and sometimes also food and water, should the patient be unable to give conscious consent (”individual health care instruction”) due to illness.
Read More..>>The Basic Use Of A Living Trust
Posted on February 18, 2008 - Filed Under Legal and Law | Leave a Comment
Estate planning is a tricky concept, but one you have to tackle. The living trust is a key component of most estate planning efforts.
The idea of a Trust began back in the 16th century in England as a way to circumvent the control of the King over property after death. The King had the right to distribute a person’s property after his death and people worried that their estates would not be distributed to their heirs by the King. They would deed their property to another entity, usually the Church, in return for the promise that the Church would distribute it to their heirs according to their wishes. In other words, they were trusting the Church to look out after their interests after their death.
Read More..>>The Unintended Consequence Of Your Living Trust
Posted on February 7, 2008 - Filed Under Legal and Law | Leave a Comment
Many couples have executed an A-B “credit shelter” trust in order to preserve estate tax exemptions for both spouses. This can potentially benefit the heirs by saving nearly one million dollars in inheritance taxes. The consequence of the credit shelter trust, however, is that estate assets are necessarily sheltered from the surviving spouse. Because language in many trusts calls for the credit shelter trust to be funded with an amount equal to the federal exclusion amount in effect at the time of death, the sheltered amount can be quite large and leave the surviving spouse with too little in the way of assets. Fortunately, proper estate planning, including the use of a “disclaimer A-B trust,” can relieve this problem.
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