|
A
Living
Trust
is
an
alternative
to a
traditional
Will.
Both
a
Will
and
Living
Trust
direct
how
your
probate
assets[1]
will
be
distributed
upon
your
death.
They
may
be
revised
at
any
time
prior
to
your
death.
The
provisions
of
the
Living
Trust
will
also
govern
your
assets
during
your
lifetime.
You
will
be
the
sole
beneficiary
of
the
trust
during
that
time,
and
the
Trustee
may
be
you
alone
and/or
someone
else
you
select.
A
Living
Trust
can
be
revoked.
Since your assets, whether
disposed of under a Will or Living Trust, will
still be subject to estate taxes, there is no
death tax benefit to utilizing one over the
other. However, there are significant
differences between the two which may make one a
preferred
alternative.
If
you:
1. Want to avoid the costs and delays of
probate;
2. Have concerns about a Will contest;
3. Have tangible property or realty in other
states;
4. Have privacy concerns; and/or
5. Are concerned about the smooth transition of
your estate upon your death and/or
incapacity;
then
a Living Trust would be the correct choice
for you as it will more favorably address these
issues.
However,
to
ensure
you
reap
the
complete
benefits
of
this
planning,
it
is
important
that
you
transfer
all
of
your
probate
assets
to
the
trust
during
your
lifetime.
This
is
the
most
time
consuming
and
costly
aspect
of
Living
Trust
planning.
It
is
as
if
you
are
probating
your
estate
while
you
are
alive.
If
any
of
these
assets
are
omitted
from
the
trust,
probate
will
most
likely
be
necessary.
Therefore,
it
is
often
customary
to
prepare
a
simple
"pour-over"
Will
in
conjunction
with
the
Living
Trust
that
directs
all
excluded
assets
be
added
to
the
Living
Trust
at
your
death.
If
the
issues
delineated
above
are
not
of
particular
concern
to
you
or
you
are
averse
to
transferring
all
of
your
assets
to a
lifetime
trust
now
(such
transfers
can
be
time
consuming
and
costly),
an
all
encompassing
Will
would
be
appropriate
for
you.
Typically,
we
only
recommend
a
Living
Trust
if
the
client
is
concerned
about
disability
within
a
few
years
or
sooner
Questions?
If
you
have
any
questions
regarding
this
matter
or
any
other
estate
planning
techniques,
please
contact
a
Maurice
Kassimir
&
Associates,
P.C.
Trusts
&
Estates
attorney
or
e-mail
us:
sklawyers@skpclaw.com.
[1]
Probate
assets
are
assets
held
in
your
own
name.
Excluded
from
the
probate
estate
are
joint
accounts,
retirement
accounts
with
beneficiaries
other
than
the
estate,
and
insurance
policies
where
the
estate
is
not
the
beneficiary. |
