Do I even need a trust?
When out to dinner, could your family or friends guess perfectly the food you would choose to order? If you answered no, then, you need a trust! A trust works as a blueprint for your loved ones so they don't need to try to guess what food you would want. A trust organizes any and all assets and last wishes as a simplified list of everything you want to protect, where they can find it, and what to do with it.
A trust allows you to avoid the cost of probate administrations for any real estate that you own.
If you have children, a trust will prevent them from potential court-supervised guardianship. Alternatively, if you have a child with special needs, a trust can insure a plan is in place which will take care of that child if you are unable.
Last, a trust will protect your privacy! And, a trust will allow your loved ones to have immediate access to your assets and property without waiting for approval from a probate court to utilize these resources.
Revocable Trust
Revocable Trust
Revocable Trust
Your living trust holds the ownership rights or title to the assets you transfer into it. You, as trustee, retain complete control over your belongings in the trust! Further, you have the ability to add or remove items from a Revocable Living Trust as you wish.
Components
Revocable Trust
Revocable Trust
1. The grantor (or settlor/trustor), typically you, creates the trust and transfers assets into it.
2. The beneficiary or beneficiaries, typically yourself and your family, reserve income and/or principal to avoid probate, to prepare for a loss of physical capacity, control the distribution of your personal belongings, and keep all your p
1. The grantor (or settlor/trustor), typically you, creates the trust and transfers assets into it.
2. The beneficiary or beneficiaries, typically yourself and your family, reserve income and/or principal to avoid probate, to prepare for a loss of physical capacity, control the distribution of your personal belongings, and keep all your private affairs out of the public record (by avoiding probate).
3. A trustee, is typically a person such as you, a family member, or a friend who manages your trust. A corporate trustee must be appointed to manage your trust assets.
PROBATE
Revocable Trust
PROBATE
Probate is a court supervised process that can be complicated and time consuming while determining whom the beneficiaries are to your assets. Attorney's fees and filing costs are terribly expensive!
Personal assets will become inaccessible by anyone until the court process is completed
This process takes about a year from beginning to end.
TYPES OF TRUSTS
REVOCABLE
A Revocable Trust is a living document which can be changed, added to, or amended during the creator's life.
JOINT TRUST
Similar to a Revocable Trust-this trust allows for a husband and wife or life partners to be named as Co-Trustee's. All of their joint, and very frequently, separate property, will be held in a trust regardless of which spouse passes away first.
SPECIAL NEEDS TRUST
The purpose is to establish good health, comfort, safety, and welfare for a time when you are no longer able to provide for a person with special needs. Someone with special needs will continue to have their medical care, special equipment, education, and rehabilitation uninterrupted in the event of your death.
SPENDTHRIFT
A trust that protects beneficiaries from selling or wasting their interest in the trust. It can also shield a beneficiary from creditors or an ex spouse from collecting money from the trust.
CHARTIBALE
A Charitable Trust can provide for a favorite charity or a university by designating a specific or generalized gift to support their cause: the creation of a scholarship for the arts or research funds for endangered elephants are examples of charitable trusts.
Roles & Duties
TRUSTEE(S)
As the Trustor who creates the Trust, you will select a successor trustee who will carry out your wishes as set forth by you in the trust. Your chosen trustee will assume his or her duties in the event of your death or incapacity. The guardian whom you have selected to care for your minor children or a special needs child will begin his or her duties set forth in your trust in the event of your death or incapacity. A trustee is a person empowered to implement the wishes of the Trustor. You can select the same person to serve as trustee and guardian in your trust. At some point, the trustee will likely be responsible for distributing the trust assets as designated in the trust.
The trustee protects, manages, invests, and can reinvest the trust assets. Additionally, that individual can collect the income and profits from the trust and pay the necessary expenses for administration.
BENEFICIARIES
Beneficiaries are the heirs, individuals, or entities whom benefit from the trust. After the Trustor dies, assets held in trust will ultimately be distributed to the beneficiaries, but ONLY when and how the trust dictates!
The Trustor can include language within the trust to safeguard the assets as well as the beneficiaries. For example, the Trustor may require that an heir or beneficiary attain the age of 25 years-old before receiving any funds. It could be unwise to bestow sums of money to an 18 year old.