One major benefit of placing your house in a trust is that it avoids probate following your passing away. Each of your other assets, if you have a will or not, are required to go through the probate process. Probate is a legal process that your estate goes through following your passing away. Throughout this…
A-B trusts are a joint trust created by a married couple for the intent of decreasing estate taxes. Upon the passing of the first spouse, the A-B trust splits into two. It is created with each of the spouses’ putting assets in the trust and designating as the final beneficiary any appropriate individual excluding the…
Special needs trusts are a legal arrangement and trustee relationship enabling a physically and/or mentally debilitated or constantly ailing individual to receive income without decreasing their qualification for the public assistance disability benefits given by Supplemental Security Income, Social Security, Medicaid, or Medicare. In trustee relationships, an individual or individuals acts on behalf of another…
Assets that are transferred into the trust turns into trust property. Trust property comprises of any assets that the grantor — the creator of the trust— transferred into the trust throughout their lifetime, or assets in which the trust was a beneficiary upon the grantor’s passing. Trust property could include real estate and personal belongings,…
Revocable trusts and living trusts are individual terms that detail the same thing: a trust in which the conditions can be modified at any time. Irrevocable trusts detail a trust that cannot be altered after its creation without the permission of the beneficiaries. A trust is an individual legal entity an individual creates up to…
You don’t have to be a Musk to require a trust. Trusts can be useful estate-planning tools for lots of individuals. But given the costs related to opening one, it’s most likely not worth it unless you have a certain amount of assets. Say you have a net worth of at a minimum of $120,000…
The whole idea of living trusts has a certain mysteriousness. You may think they’re only for very affluent individuals, or that they’re a lot harder to devise than a straightforward last will and testament. However, they can be an ideal estate-planning instrument for others. A revocable living trust come with equally pros and cons, from…
Discover the differences between a living trust and a will. What are the differences between revocable living trusts and wills? And which do you need to make? What Is a Will? A will is somewhat straightforward documentation in which you declare what needs to happen to your property following your passing. You are also able…
You don’t have to be a Musk to require a trust. Trusts can be useful estate-planning tools for lots of individuals. But given the costs related to opening one, it’s most likely not worth it unless you have a certain amount of assets. Say you have a net worth of at a minimum of $120,000…
A last will and testament is initial documentation in your estate-plan and the ideal way to make your life after death desires known to friends and family members. Not having a legal will, a court and state laws establish your property allocation and minor children’s guardians—not you. Whereas you could complete a DIY will, you…
