I have had a constantly updated Will since my early US Army days.
I am now thinking of doing a Living Trust. My research shows a Living Trust will automatically transfer my estate to my children through a Trustee, without any probate risk.
I would appreciate any comments out there from someone who is an attorney, or even a "Barracks Lawyer".
My own mother set up an Irrevocable Living Trust for me when she reached a certain age. It worked very well for me. She also gave me power of attorney. Everything we have is in both wife and my name as co-owners. I should be able to escape OWE-bama's Estate Tax due to it being below a zillion dollars, or whatever the max figure is.
Estate Planning
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AlexOliver
- Posts: 461
- Joined: Tue Aug 03, 2010 7:25 pm
Remember that that a “revocable trust” has no tax benefits (which it sounds like you might not need anyway), and the property remains in your control and in your estate at death. It simply transfers your property that is not already subject to its own transfer rules such as having a co-owner (House, car, JT bank account) or a beneficiary (life insurance policy, IRA, etc) outside of the probate system (which a will does not). The purpose of an “irrevocable trust” is transfer property out of your estate prior to death, thus allowing for all or a portion (subject to gifting and other rules) to escape taxation in your estate.
If your sole purpose is to ensure that your property is transferred to the proper person, this can be done through proper title or a will. A revocable trust simply allows more detail and the benefit of privacy, if that is a concern.
A power of attorney can be established to give control over specific (“special POA”) or all matters (“general POA”) prior to incapacity, or have “springing powers”, which gives control only after incapacity. Power of attorney ceases at death. A health care POA gives control over medical decisions in the event of incapacity (also called a “living will”). General, Special, and Health care powers of attorney can all be made "durable", that is that they remain intact AFTER incapacity.
If your sole purpose is to ensure that your property is transferred to the proper person, this can be done through proper title or a will. A revocable trust simply allows more detail and the benefit of privacy, if that is a concern.
A power of attorney can be established to give control over specific (“special POA”) or all matters (“general POA”) prior to incapacity, or have “springing powers”, which gives control only after incapacity. Power of attorney ceases at death. A health care POA gives control over medical decisions in the event of incapacity (also called a “living will”). General, Special, and Health care powers of attorney can all be made "durable", that is that they remain intact AFTER incapacity.
@BrianCT
Thank you for your information. These were my general understandings. At my age of 65, I am thinking more and more of making it as easy as possible to transfer my assets to my child upon my death, and/or death of my spouse. At this point I plan to see my attorney and request a revocable living trust, and also to prepare a living will.
Not that I am worth too much, either in assets or otherwise, but I think it moral to make it as easy on your heirs as possible.
Thank you for your information. These were my general understandings. At my age of 65, I am thinking more and more of making it as easy as possible to transfer my assets to my child upon my death, and/or death of my spouse. At this point I plan to see my attorney and request a revocable living trust, and also to prepare a living will.
Not that I am worth too much, either in assets or otherwise, but I think it moral to make it as easy on your heirs as possible.
If probate is your major concern you want a revocable trust, that's what most of our clients have. Property with beneficiary designations - IRAs/retirement plans/life insurance/joint tenancy will automatically pass outside of probate unless you named your estate beneficiary.
Just make sure to actually fund the trust when it is set up - basically retitling your assets in the RLT name. Otherwise, it's useless.
Just make sure to actually fund the trust when it is set up - basically retitling your assets in the RLT name. Otherwise, it's useless.
@HSpencer - I'm not an attorney (a CPA) but our clients do have their wills/trusts updated at times. The ones I've seen don't list the assets in the trust document, the assets are simply titled in the trust's name. Example: your checking account would say "HSpencer Revocable Trust" instead of "HSpencer".