What Happens to My Property Put into A Living Trust?

by Living Trusts

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When you pass away, the court reviews your estate planning documents, including a will and any trust established to determine what happens to your property. If you pass away without a will, the state then determines what happens to your property.

Although you don’t have to use a trust to transfer property to future generations, it’s one way to add more privacy and flexibility to your own estate plan in Virginia.

You can make things much easier for your loved ones and ensure a much higher chance of property distribution by creating a basic will or a will and a living trust. A living trust can reduce estate taxes, help you avoid probate and set up long term property management.

It’s important to realize that property transferred into a living trust before you pass away does not go through probate. Instead, the trustee or the person with fiduciary duty who is appointed to manage the trust and distribute its assets will be responsible for transferring ownership to the beneficiaries named in the trust. Living trusts may allow you to change things over the course of your life but are also more private than a will, which becomes a matter of public record when it’s submitted to probate.

Although it may sound overwhelming, it is much easier to establish a living trust than you expect, particularly when you’re working with a knowledgeable estate planning attorney. An attorney can help you decide if a living trust is an appropriate tool for you to use in addition to your will. Reach out to schedule a consultation today to learn more.

How To Use a Trust to Minimize Taxes

by Estate PlanningLiving TrustsTaxes

Taxes can have one of the most significant impacts on your intentions with estate plans. This is especially important as you contemplate incapacity issues. If you no longer are able to manage your financial assets, this brings important questions to the surface about who is responsible for those assets.

Trust planning becomes crucial in this strategy because trusts can be a valuable way to minimize taxes on your estate. Trusts refer to legal arrangements that benefit people or causes you choose down the line. There are several different kinds of trusts available for estate planning purposes, and they vary in terms of how they can be activated. Discussing your personal concerns for trust planning with an experienced estate planning lawyer can help you to determine whether a living trust or an irrevocable trust is most important for you.

A living trust is a transitionary method that assists with incapacity planning, whereas an irrevocable trust means that the creator of the trust relinquishes the right to reclaim any property after the trust has been created. Furthermore, that person does not have the ability to close the trust or to make any amendments or major changes to it. As a result of these complex factors, it is crucial to select the right kind of trust for your estate planning purposes.

Make sure that you consult with an attorney who is highly familiar with these different types of trusts and who can help advise you about the right selection based on your personal goals. If you’re ready to meet with a Virginia Beach, Virginia estate planning lawyer, contact our office today.

 

Who Owns the Property Inside A Living Trust?

by Irrevocable TrustsLiving Trusts

There are many different complex terms and rules associated with estate planning, but it is critical to understand when you may or may not own property once it has been placed in a living trust.

Property placed inside a revocable living trust still belongs to you unless you retitle it properly. This is, unfortunately, a common estate planning mistake that people forget about when setting up a living trust for the first time.

Your living trust outlines who you want to receive the assets inside after you pass away and who should be appointed as successor trustee to manage the distribution of that property. This is different from an irrevocable living trust.

Property transferred and properly titled into an irrevocable living trust becomes the property of that trust, and not part of your probate, estate or belonging to you. When you set up a living trust, you will need to transfer the assets from your name to the name of the trust. This also means that your trust legally now owns all of these assets, but that you manage those assets as the trustee.

So, this does not remove all personal credit all personal liability issues or responsibility. It’s very important to consult with an experienced and dedicated estate planning lawyer to learn more about this process and to ensure you have considered all of the most important aspects of creating a living trust. Discussing your options with an experienced estate planning lawyer in Virginia Beach is strongly recommended to give you clarity on the process and to allow you to move forward successfully.

 

 

 

Tips for Naming Your Living Trust

by Estate TaxesLiving Trusts

You know that you want to set up a living trust and have already established a relationship with an experienced estate planning attorney to help you get there.

Your living trust enables you to transfer property to the charities and people of your choice without having them go through the probate court supervised process. A trust avoids probate because the assets that are named inside the trust are not actually part of your estate but are owned by the trust.

When it comes to naming a trust, there are a couple of important things to keep in mind. In order for a trust to formally and legally hold property, whether it’s a business interest, brokerage account, a home or something else, the trust must also be identifiable. Its formal name is what is used to identify the trust.

You do not have to use your full family name to identify a living trust. The default is to use the family name or the person you’re hoping to honor through the trust, but this depends on your comfort level around privacy.

You may be concerned about privacy issues as well or a name might feel too long so you can always enlist the help of your experienced estate planning attorney to help you do it. When you name a trust, the name you choose for the actual title of the trust will be in the title of each asset inside the trust. The name of the trustee of that trust will be on the title of the trust assets.

People also often choose to shorten the name of the trust, such as the X family trust rather than the full name to allow for ease and greater levels of privacy. Schedule a consultation with a Plymouth, MI estate planning attorney who has extensive experience in creating and managing trusts so that you have peace of mind about your choice.

 

Are Living Trusts Only for the Wealthy?

by with No Comment Estate PlanningLiving Trusts

All too often, people miss out on valuable estate planning opportunities because they fall for myths that they heard from someone once or did not properly investigate.

The only reliable source for estate planning information is an experienced estate planning lawyer who has a track record of assisting people with the proper structure of their individual plans.

One common myth that prevents people from putting together a trust that would otherwise help them and their beneficiaries is the concept that living trusts are only for wealthy people. This is the most widely believed misperception about living trusts and is completely inaccurate.

Although many wealthy individuals set up trusts, this doesn’t mean that they are an estate planning option that only makes sense for the rich. Instead, many individuals and middle class families find that there are numerous benefits to using a living trust that could complement their other estate planning.

A living trust enables the grantor to retain control over the trust property until he or she passes away. At that point in time the trust is turned over to the successor trustee who was selected by the grantor and is responsible for distributing trust property, according to the grantor’s individual wishes.

There are numerous benefits to having a living trust as part of your overall estate plan, such as easy distribution of your assets to your beneficiaries, avoiding probate, and additional privacy. Furthermore, a living trust ensures that the wishes outlined in their estate planning are followed to the letter. A knowledgeable estate planning lawyer can help you to draft this important document.