These are your children, spouse, pets, future children, organizations, and non-related loved ones you wish to inherit your assetsīesides the actual assets, include a description of your assets and their most-current value The person the grantor names to take over control and ownership of the trust when the grantor dies or becomes mentally incapacitated Spouses who supervise and own a trust together, one assuming full control if the other dies The individual who manages assets in the trust, which can be the grantor Here are some major elements of a living trust: While revocable living trusts offer several benefits, you must take time to gather all necessary information while drafting the document to ensure a court can enforce it. You want your heirs to receive their inheritance as quickly as possible after your death, and a well-written revocable living trust helps accomplish that goal. Another advantage is that these trusts help avoid the probate process, which can drag on and result in hefty probate court and executor costs. Examples of assets often included in revocable living trusts include personal property, trust property, bank accounts, business interests, Certificates of Deposit, trust assets, and brokerage accounts.Ĭompared to other trusts and estate planning tools, you may prefer the flexibility that a revocable living trust document offers. General items included on the document include real estate property, trustee powers, and duties, backup trustees, pet or child trusts, and beneficiaries. You may also add or remove assets as you see fit. One unique feature of a revocable trust is that you can revoke or change your trust. The legal document requires a trustee to oversee the assets, but as the trust's creator, you can name yourself as the trustee. Called a living trust because a person creates such a trust while still alive, a revocable living trust holds and controls assets. However, if you have a sizeable estate, you will need to consult an experienced estate planning attorney.If you want to ensure that your assets pass on to your intended heirs and beneficiaries, consider using a revocable living trust as an estate planning tool. Most simple estates will never pay estate taxes in 2015, the federal estate tax exemption is $5.43 million, which means your estate will only pay estate taxes if its value exceeds that amount. These templates also provide no protection to avoid or minimize federal or state estate taxes. An experienced estate planning attorney can help you draft a trust that will allow your current spouse to benefit from your estate and have the bulk of it pass to your children at his or her death. You may also wish to utilize trusts if you are married and have children from a previous marriage. While the document does give the personal representative or trustee the authority to create a trust to hold the minor's inheritance, if you want your child's inheritance held in trust, you should seek the advice of an experienced estate planning attorney who can help you draft the trust to fit your needs. Neither the Last Will and Testament nor the Revocable Living Trust templates create additional trusts for minors that might receive inheritance. The trustee of a living trust, on the other hand, is not obligated to provide the deceased's next of kin with any information regarding the distribution of the trust's assets. Your son may not be happy to see that you left your entire estate to charity and can seek to challenge it. If your spouse or children are not set to inherit your estate, notice to the next of kin can be a problem because the notice also includes the names of the beneficiaries. This is not an issue if your spouse or children are set to inherit your estate. The personal representative must notify the deceased's next of kin (usually the spouse and children) that the estate is being admitted to probate, and who the beneficiaries are. It is also much easier to contest a will than it is a trust. This means that anybody willing to go to the local courthouse can pull your probate record and see who you left (or didn't leave) your estate to, and how much money you had. Once admitted to probate, a will becomes a public document.
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