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Submitted by: George Greenberg
LIVING TRUST BASICS
A simple revocable living trust is a separate legal entity that is created to avoid probate and to distribute assets to beneficiaries upon death.
A living trust names a person or persons to manage the trust called “Trustees.” It also names those who will benefit from the trust called “Trustors,” a term that is also referred to as Grantors, Settlors, Creators or Donors. In most cases, the Trustors and Trustees are the same people.
The Trustors will name a “Successor Trustees” to take over upon the death of the Trustor or Trustors. It is the duty of the Successor Trustees to take possession of the assets of the trust, pay creditors, taxes, and last illness expenses and then distribute the remainder to the named beneficiaries under the trust.
In order for a trust to be effective, the Trustors must place their assets in the name of the trust. This process of placing assets in the name of the trust is known as “funding the trust.” For example, real property would be deeded into the name of the trust. Bank accounts would be changed into the name of the trust, etc. In the State of Nevada, assets funded into a valid living trust are not required to go through a court procedure called Probate. As a result, your heirs save time and money.
A good trust package should include wills called “pour over wills” to address assets that are outside of the trust. A good trust package should also include living wills and powers of attorney for health care decisions and finances.
In your living trust, you may designate how you want your final arrangements handled. For example you might state whether you wish a burial or cremation. If you are a parent of minor children, you will express a preference as to whom you would prefer as the guardian of your minor children.
If set up properly, a revocable living trust, will greatly simplify the administration of your estate. The trust should also clearly define who your beneficiaries are. In addition to beneficiaries, alternate beneficiaries should be named, as well as alternate successor trustees and, in your wills, alternate executors.
My clients often have difficulty deciding how to distribute their estate. I suggest possible alternatives or various distribution plans. Quite often, I ask my clients to go home and “sleep on it” for a few days before they make their final decisions.
Another advantage of a revocable living trust is that it can easily be changed by an amendment. A living trust is most useful for those persons who have acquired some assets and generally for those between the ages of 35 and 65.
A living trust can however, outlive its usefulness. For example, a surviving spouse who sells all real property and simply wants to leave his assets in equal shares to his children upon death, may want to name his children as beneficiaries directly with the fund holders such as banks or brokerages. There are disadvantages of relying solely upon beneficiary status that I will discuss in another article. A living trust can save time and money for those whom you want remembered.
The author of this article, George D. Greenberg, Esq. has been practicing in the areas of Probate, Trusts, Wills and Estate Planning since 1991. Mr. Greenberg welcomes your questions and can be reached at his website http://www.probateattorneyslasvegas.com or telephone (702) 796 5221.
About the Author: The author of this article, George D. Greenberg, Esq. has been practicing in the areas of Probate, Trusts, Wills and Estate Planning since 1991. Mr. Greenberg welcomes your questions and can be reached at his website
probateattorneyslasvegas.com
or telephone (702) 796 5221.
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