![]() The trust agreement is completely revocable, meaning that during the individual’s lifetime, he or she can amend or terminate the trust at any time. ![]() A successor trustee then distributes the trust assets according to the terms of the trust agreement. Upon the individual’s death, there is no need for probate since the decedent didn’t own anything (the trust does!). Once this agreement is in place, the person then transfers all of his or her assets into the name of the trust, retaining complete control over the management and use of the assets as trustee. A trust agreement is drafted that sets forth how a person’s assets are to be managed during his or her lifetime and how the assets will ultimately be distributed at death. What is a revocable living trust?Ī revocable living trust is a substitute for a will that is designed to distribute your assets at death without having to go through probate. Therefore, we recommend that you and your attorney review your estate plan every few years simply to ensure that it continues to properly represent your wishes, and that it complies with the current probate and tax laws. With the passage of time, any number of changes could potentially have a significant effect on your estate plan. ![]() The shelf life of your estate plan depends on a number of different factors, including changes over the years in (1) family circumstances (2) tax and probate laws and (3) financial circumstances. If I already have an estate plan in place, do I need to update it? Finally, without a will, the administrator of your estate will generally be required to post bond and be obligated to ask permission of the court before taking any action on behalf of the estate. The law also does not make provisions for your minor children, leaving the court with ultimate authority to choose the person who will care for your children and their property. This law is quite rigid and does not take into account concerns such as tax minimization, family dynamics, and an array of other concerns unique to each individual. If you die without a will, the court will appoint an administrator to oversee the distribution of your assets. After payment of taxes, debts, funeral expenses and administrative costs, your assets will then be distributed according to state law, which represents the legislature’s “best guess” as to how the average person would want his or her assets to be distributed. Everyone needs an estate plan to appoint a family member or trusted friend to act on their behalf in the event of incapacity. ![]() Parents with young children need an estate plan in order to appoint someone to care for their minor children or to set up a trust for their benefit. Other people need an estate plan to minimize taxes. Everyone needs an estate plan, although for a variety of reasons. One of the primary goals of any estate plan is to minimize (or entirely eliminate) any and all taxes due at the time of death. A basic estate plan typically includes a Will, Financial Durable Power of Attorney, Health Care Power of Attorney, and a Health Care Directive. From the Estate Planning and Probate GroupĪn estate plan is a set of documents that provides for the orderly arrangement and management of your affairs in the event that you become incapacitated and sets forth the desired disposition of your estate after your death.
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