WHAT A LIVING TRUST CAN DO
A LIVING TRUST ELIMINATES A LIVING PROBATE
If you become disabled or are unable to manage your estate, your living trust avoids the need for a court mandated conservatorship. The successor trustee you've named will step in and manage your affairs without government interference and expense.
A LIVING TRUST AVOIDS DEATH PROBATE
With a properly funded living trust
your assets will go directly to your beneficiaries after your death.
There will be no probate attorneys fees or court costs. There
will be no delay in distributing your assets, and all your estate planning
goals will be completely private.
A LIVING TRUST CAN REDUCE OR ELIMINATE FEDERAL ESTATE TAXES
With a properly funded living trust, a married couple can pass $2,000,000
in 2002 absolutely estate tax free to their heirs. A single person can
pass $1,000,000 in 2002 estate tax free.
A LIVING TRUST ALLOWS YOU TO RESTRICT HOW YOUR ESTATE IS MANAGED AND SPENT EVEN AFTER YOUR DEATH
It can provide for the care, support and education of your children by turning over assets to them at an age chosen by you. Even insurance proceeds can be paid to the trust so your successor trustee can manage them for the benefit of your family. Importantly, if at the time chosen to distribute the assets to your children, one or more child is subject to an unforeseen liability or debt, you are able to direct that your successor trustee continue to hold legal title to the asset and have your child get only the beneficial interest. Such provisions, known as Spendthrift provisions, are valid in most states, and ordinary creditors are unable to reach assets protected by such clauses.
A LIVING TRUST CAN PROTECT CHILDREN FROM EARLIER MARRIAGES
Both the surviving spouse and the children from a previous marriage can receive fair treatment and protection under the tenants of your living trust.
A LIVING TRUST CAN INSURE THAT YOUR WISHES ARE CARRIED OUT AND ARE NOT SUBJECT TO ATTACK
Most living trusts contain a "No Contest Clause" which prevents greedy beneficiaries and their lawyers from successfully attacking your estate plan.
A LIVING TRUST GIVES YOU PEACE OF MIND
When your living trust is completed, you and your family will relax knowing that your estate will be managed and distributed by someone you have selected and trust.