Protect your family today, it's time to get your Living Trust!
What is a Living Trust?
A Living Trust is a written document that places all of your assets into a Trust.
Just like a will, a living trust spells out exactly what your desires are with regard to your assets, your dependents, and your heirs.
The big difference is that a will becomes effective only after you die and your will has been entered into probate.
A living trust bypasses the costly and time-consuming process of probate, enabling your successor trustee (who fills basically the same role as an executor of a will) to carry out your instructions as documented in your living trust at your death, and also if you’re unable to manage your financial, healthcare, and legal affairs due to incapacity
A living trust is most appropriate for individuals who have complex financial or personal circumstances, such as substantial assets, a blended family, closely-held business interests, or property in other states.
A living trust can also be a very effective tool for an unmarried individual, regardless of financial situation, presuming that the individual’s desires can’t be fulfilled by utilizing beneficiary designations and the joint with rights of survivorship titling option and powers of attorney.
Types 1 of a living trust is:
Revocable living trust:
With a revocable living trust, you transfer your assets into the ownership of the trust.
You retain control of those assets as the trustee of your revocable living trust.
You can change or revoke the trust at any time you want.
The assets in the trust pass directly to your beneficiaries without going through probate upon your death.
However, neither wills nor revocable living trusts avoid or minimize estate taxes.
Types 2 of a living trust is:
Irrevocable living trust:
An irrevocable trust allows you to permanently and irrevocably give away your assets during your lifetime.
After you give away these assets, you have relinquished all control and interest in these assets. Due to that fact, these assets are no longer considered part of your estate and aren’t subject to estate taxes.
As you likely imagine, an irrevocable trust is appropriate in only extremely rare circumstances, such as when you have more money than you or your spouse could ever use.
Your beneficiaries would benefit at Uncle Sam’s expense if you utilized an irrevocable trust to reduce your taxable estate before your death.
Living Trust Q & A
A Living Trust must be signed, witnessed, and acknowledged by a Notary Public. The creation of a Living Trust will allow your loved ones to avoid probate after your death.
The Benefits of Setting up a Living Trust
Organize your assets: If you were to die tomorrow will your loved ones know where all of your assets are to start the process of getting all your affairs in order? Life insurance company, Cemetery information, 401K or Roth info, etc...
Avoid Probate: Save your loved ones the cost, stress, and delay of going through the legal process.
Step Up in Basis: A Step up in basis means that your beneficiaries will receive a readjustment of the value of an appreciated asset for tax purposes upon inheritance. For instance, if you purchased your property for $250,000 but the value at the time of your death is $1 million then your beneficiary(ies) will inherit the property with the basis of $1 million which means they don’t have to pay taxes on the increased value.
The Personal Estate Tax Exemption: The personal exemption allows a set dollar amount of property to pass tax-free, no matter who inherits it. For deaths in 2017, the individual exemption is $5.49 million. The amount is indexed for inflation, so it will probably increase in future years. If you have made taxable gifts during your life, the amount of your personal exemption will be reduced by the amount of those taxable gifts.
The Marital Deduction: All property left to a surviving spouse passes free of estate tax. (I.R.C. § 2056(a).) The marital deduction is not allowed for property left to non-citizen spouses, but the personal estate tax exemption can be used for property left to non-citizen spouses.
The Charitable Deduction: All property left to a tax-exempt charity is also free of estate tax. (I.R.C. § 2055(a).)
Special Rules For Married Couples: A surviving spouse gets a big tax break. If the deceased spouse didn’t use up his or her individual tax exemption, the survivor can use what’s left. That gives the couple a total exemption of twice the individual exemption amount, which can be split between them in any way that provides the greatest tax benefit. For example, say a man dies and leaves $4 million to his widow; no estate tax is owed because property left to a spouse is tax-free. The widow then dies, leaving $7 million (her own $3 million plus the $4 million she inherited from her husband) to their children.
How does your service work?
Once you purchase the service we will email you a questionnaire. This will help us complete your forms and we will draft your paperwork based on the information you give us. We will scan and email your completed forms for review, and once we receive your email approval we will print out your forms and place them into a binder and meet with you personally to notarize your forms, and then close out your case.
What type of information is required?
In your trust, you want to keep everything you want your executor of trust to know like, Life Insurance, Burial site information, Bank Information, ect.. Building a Trust is quite extensive and requires a lot of confidential information so we can build it into your trust. However, we want to help you keep this confidential. Just have the copy's ready and we will bring our whole puncher and place these into your trust as we meet with you.
What if I have legal questions?
Unfortunately, we are only a Legal Document service, and we can only assist you with the paperwork you would like drafted. If you need legal counsel you will have to seek an attorney. We work closely with attorneys and can refer you to a few so you can seek the answers to your questions.
How to cancel my service?
To cancel your service you will just need to notify us, however, we will not refund your purchase, no exceptions, even if it was an accidental purchase.
Please ensure you ask all questions before you purchase our service.