The Living Trust is a set of instructions you create to list what assets you own, to advise who gets your assets when you die, and to advise how and when your assets should be distributed.
The Living Trust is a revocable grantor trust, which means it can be changed at anytime and the assets within the trust belong to the grantor. So if you put $10,000.00 into a bank account in the name of the trust you personally can withdraw money from the account. If you are sued personally the $10,000.00 you placed in the bank account belongs to you and can be used to settle a personal lawsuit. Yes, it is very true; your stuff can be taken from the Living Trust!
The Living Trust only avoids probate court; it does not avoid estate taxes. The trust is responsible for paying the correct amount of estate taxes owed.
There are three key players involved in a Living Trust: the Grantor is the person creating the trust to hold assets; the Trustee is in charge of distributing assets specific to the Grantor’s wishes and pay any estate taxes; and the Beneficiaries are the ones that get the goods.
The Living Trust should contain an appointment of guardian for minor children. We all have that relative whom we hope will never be a role model for our kids, so it’s important that we spell that out ahead of time. The Living Trust should contain a list of all the assets you own, including bank accounts, retirement accounts, insurance policies, heirlooms, vehicles, etc. The Living Trust should advise the Trustee who gets what, for example, your daughter gets your jewelry, your son gets the cars, etc. The Trustee should also be instructed as to when the assets should be given, for example, the kids should be age 25 and graduated from high school.
A good trust will also include a Medical Derivative. This informs medical professionals how you wish for them to treat you in life threatening conditions because loved ones are too emotionally involved in the moment to be able to follow your wishes. For a clear example of how this does happen in real life, research the Terry Schiavo case.
It is important for you to understand that the Living Trust is you, the assets are yours, the estate taxes are owed on the assets, and the assets can be taken in a legal action.
We do not believe that the Living Trust should be used as a land fill for all your stuff, as some legal persons may advise you to do. The Living Trust is a clear roadmap for the distribution of your estate and for your final wishes, so NexStep Innovations does encourage everyone to implement a Living Trust. And if you already have a Living Trust, NexStep Innovations encourages you to re-examine how you’re using it and to find out if you could be using it better.
If you wish to discuss your personal need for a Living Trust please feel free to contact us.
The Living Trust is a revocable grantor trust, which means it can be changed at anytime and the assets within the trust belong to the grantor. So if you put $10,000.00 into a bank account in the name of the trust you personally can withdraw money from the account. If you are sued personally the $10,000.00 you placed in the bank account belongs to you and can be used to settle a personal lawsuit. Yes, it is very true; your stuff can be taken from the Living Trust!
The Living Trust only avoids probate court; it does not avoid estate taxes. The trust is responsible for paying the correct amount of estate taxes owed.
There are three key players involved in a Living Trust: the Grantor is the person creating the trust to hold assets; the Trustee is in charge of distributing assets specific to the Grantor’s wishes and pay any estate taxes; and the Beneficiaries are the ones that get the goods.
The Living Trust should contain an appointment of guardian for minor children. We all have that relative whom we hope will never be a role model for our kids, so it’s important that we spell that out ahead of time. The Living Trust should contain a list of all the assets you own, including bank accounts, retirement accounts, insurance policies, heirlooms, vehicles, etc. The Living Trust should advise the Trustee who gets what, for example, your daughter gets your jewelry, your son gets the cars, etc. The Trustee should also be instructed as to when the assets should be given, for example, the kids should be age 25 and graduated from high school.
A good trust will also include a Medical Derivative. This informs medical professionals how you wish for them to treat you in life threatening conditions because loved ones are too emotionally involved in the moment to be able to follow your wishes. For a clear example of how this does happen in real life, research the Terry Schiavo case.
It is important for you to understand that the Living Trust is you, the assets are yours, the estate taxes are owed on the assets, and the assets can be taken in a legal action.
We do not believe that the Living Trust should be used as a land fill for all your stuff, as some legal persons may advise you to do. The Living Trust is a clear roadmap for the distribution of your estate and for your final wishes, so NexStep Innovations does encourage everyone to implement a Living Trust. And if you already have a Living Trust, NexStep Innovations encourages you to re-examine how you’re using it and to find out if you could be using it better.
If you wish to discuss your personal need for a Living Trust please feel free to contact us.
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