Estate Planning With a Living Trust

TRANSFERRING PROPERTY TO YOUR TRUST

After creating your trust, you must complete the formality of transferring your property to the trust. For example, instruct your broker to transfer your stocks and bonds into the name of the trust. Tell your insurance agent to assign your life insurance policies to the trust. Deeds transferring your real estate should be prepared and recorded in every county where you own real estate. This office can assist you every step of the way.

AVOIDING PROBATE

A Will is still needed to appoint a guardian for your minor or disabled children. A Will is also needed for assets that you acquire after the creation of the trust or may have

neglected to transfer to your trust. The Will should have a “pour-over” provision to transfer your property to the trust when you die. Such a “pour-over” provision will cause your property to be distributed according to the terms of your trust.

TAX PLANNING

For income tax purposes, the trust property is treated as if you remained the owner. You will report income from the trust on your federal income tax return until your death. However, the creation and funding of a living trust does not have any federal gift tax consequences. A trust can be used to avoid estate taxes. Our office can help you to design a trust that provides the most favorable tax treatment for your heirs.

CONCLUSION

Living trusts have many advantages in estate planning. Unlike Wills, living trusts do not require lengthy and costly probate proceedings. Your property and heirs will not be listed in public records in a courthouse. And your property can be transferred to your heirs almost immediately after your death. The advantage of the living trust must be weighed against the expense and effort of creating and administering the trust.

Ask our attorneys whether a living trust is the right estate planning tool for you. We can carefully draft a trust document to meet your needs and objectives and help you to reduce taxes for yourself and your heirs. We can also help you prepare other estate planning documents, such as a Will, a durable power of attorney, and a medical power of attorney.

LIVING TRUST SUMMARY

1. BENEFITS OF A LIVING TRUST

A. Avoid probate

B. Preserve privacy

C. Professionally manage your property

D. Better handling of out-of-state real estate

E. Avoid guardianship when incapacitated

F. Avoid Will contests & family disputes

i am not an attorney and am not offering any legal advice - with any questions please contact an attorney that specializes in Estate Planning. I can recommend a few local attorneys. Feel free to contact me. 254-654-2828 - Mick

www.bellcountyprobate.com

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