Why Should I Use a Living Trust
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While you are alive, assets in a living trust would not be protected from creditors or litigants. However, after you die, the trust would become irrevocable. Learn more about living trust in this presentation.
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Why Should I Use a Living Trust
- 1. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF WHY SHOULD I USE A LIVING TRUST?
- 2. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF DON'T MAKE ASSUMPTIONS
- 3. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF People often make assumptions about estate planning that are not accurate.
- 4. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF One of them is the notion that you cannot benefit from a trust if you are not extraordinarily wealthy.
- 5. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF This is really not the case.
- 6. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF AN EFFECTIVE ESTATE PLANNING TOOL
- 7. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF There is a type of trust that can be useful for reasonably successful people who are not among the financial elite.
- 8. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF This would be the revocable living trust.
- 9. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF NO WORRIES Another misconception that people sometimes entertain is the idea that you lose all control of assets that you convey into a trust.
- 10. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF For this reason, they shy away from the possibility of trust creation.
- 11. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF In fact, you maintain full control of assets that you convey into a revocable living trust.
- 12. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF You can act as the trustee and the beneficiary, and you can revoke the trust entirely if you ever choose to do so.
- 13. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF INCAPACITY
- 14. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF A significant percentage of elders become unable to handle their own finances at some point in time.
- 15. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF Incapacity can strike as a result of various different causes, but Alzheimer's disease is very common among the oldest old.
- 16. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF When you have a living trust, you could empower a disability trustee to manage the trust if you ever become incapacitated.
- 17. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF SUCCESSORS As we have stated, you can act as the trustee and the beneficiary while you are alive and well.
- 18. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF Ultimately, you want the assets in the trust to go to your heirs after your passing.
- 19. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF In the trust declaration, you name a successor trustee to administer the trust after you are gone.
- 20. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF You also name successor beneficiaries.
- 21. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF SELECTING A TRUSTEE
- 22. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF You may naturally assume that you should name someone that you know personally to act as the trustee after you pass away.
- 23. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF This is perfectly allowable, but many people will use a corporate trustee.
- 24. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF Banks and trust companies offer trust administration services, and this is an option that is available to you.
- 25. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF DISTRIBUTIONS
- 26. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF You control the nature of the distributions that will go to the beneficiaries after your death.
- 27. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF If you want to, you can have the trustee distribute limited ongoing income over an extended period of time.
- 28. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF This would prevent your loved ones from spending their inheritances too quickly.
- 29. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF ASSET PROTECTION
- 30. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF While you are alive, assets in a living trust would not be protected from creditors or litigants.
- 31. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF However, after you die, the trust would become irrevocable.
- 32. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF You could include a spendthrift provision, and there would be a level of asset protection for the successor beneficiaries.
- 33. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF ARE YOU READY TO TAKE ACTION?
- 34. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF If you are interested in the possibility of creating a living trust, our firm can help.
- 35. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF Give us a call or send us a message through our website if you would like to set up a consultation.
- 36. ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF Or visit our website www.sinclairprosserlaw.com Nicole Livingston Jon J. Gasior Colleen SinclairProsser Victor A. Lembo