The revocable living trust has a ton of benefits and it’s easy to implement.

Here’s a list of the main benefits:

• Avoids probate when fully funded, saving time, money, and stress all while keeping your affairs private
• Organizes your assets
• Allows you to choose who gets your assets after your death
• Allows you to instruct how assets are received (i.e. life time trusts)
• Authorizes successor trustees to act on your behalf and handle financial issues, day to day business matters, and trust settlement
• Provides for your incapacity so you bills are paid and your assets are managed if you become disabled.
• Keeps the court out of your business which reduces time, money, and stress and increases privacy
• Keeps your business affairs and family matters private.
• Allows pet planning so your beloved pets are cared for if you become disabled and after you die
• Prevents the unintentional disinheritance of children
• Protects your money from others who are interested in your spouse and your money after your death
• Protects beneficiaries from financial predators
• Allows for asset protection trust shares for beneficiaries so assets aren’t taken in divorce, business failure, bankruptcy, medical crisis, car accident law suit, slip and fall lawsuit, or medical malpractice case
• Includes federal estate tax elimination or minimization for married couples
• Won’t disqualify special needs beneficiary from governmental assistance
• Won’t disqualify Grandma from Medical Assistance to pay for the nursing home

Revocable living trust notes:

• Don’t be put off by the up-front fee.  It’s a worthwhile investment.
• A portion of the fees attributable to tax related advice is tax deductible for income tax purposes.
• Review your estate plan, including your revocable living trust, every three to five years with your estate planning attorney to make sure it meets your current needs.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

What are trustees?

Trustees are trusted helpers who carry out the instructions in your trust and hold legal title to trust assets.  You may serve as trustee of your own trust.

What do trustees do?

Trustees carry out the instructions in the trust. 

Common trustee duties include:

• Managing assets
• Paying bills
• Finding you a supportive living environment if you are disabled
• Overseeing the caretaker of your pet when you are disabled or die
• Setting up trust shares for your beneficiaries after you die
• Hiring professional advisors
• Filing tax returns
• Protecting your assets
• Miscellaneous day to day business matters

How many trustees do I need?

Well, you have yourself!  You can serve as trustee of your trust while you’re alive and well.

You’ll need to name a disability trustee to serve in the event you become disabled.  Be sure to name successor disability trustees as well.  Successors serve if your appointed trustee is unwilling or unable to serve.

You’ll also need to name settlement trustees, sometimes called “death” trustees, to serve after your death.  As with disability trustees, be sure to name successors.

You’ll also name trustees to serve as trustee of the trust share for your surviving spouse and children and/or pet. 

Who should I choose to be trustee?

If you are married or have a life partner, consider choosing him or her.  Responsible grown children are also often selected.

The ideal trustee cares about you and is highly organized, a good record keeper, and a good communicator.  Your trustee can always hire the help of professionals such as an estate planning attorney, CPA, insurance professional, and financial advisor.

If no one in your family fits the bill, you can select trusted friends or professionals.

If you have additional trustee questions, consult with a qualified estate planning attorney.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.

The revocable living trust has many components and serves many functions.  It is the center of an estate plan and works in conjunction with ancillary documents such as your will and powers of attorney.  Herein, we’ll answer the question:  What’s in a revocable living trust?

The revocable living trust is composed of many articles.  If you’re like most people, the term “articles” sounds like “legalese.”  In your mind replace “articles” with “chapters.”  The trust, like a book, is composed of chapters.

Each chapter serves a particular purpose and is clearly labeled and referenced in an index.  In each revocable living trust, there will be language:

• Creating the trust

• Stating the full trust name (with trustee and successor trustee language) and the name of convenience (the short name that you can remember)

• Providing tax filing guidance (file taxes on your normal 1040, using your social security number)

• Acknowledging your immediate family and loved ones

• Providing instruction on trust funding (re-titling assets into the name of your trust)

• Stating that your trust is revocable (meaning that you can revoke it or amend it at any time you are alive and well)

• Providing disability planning including the definition of “disability,” methods for determining whether disability is present, the appointment of disability trustees, and instruction for such trustees as to your care and the management of your assets during any period of disability.

• Instructing the distribution of your assets after your death (likely including asset protection language.)

• Providing for the appointment of trustees (and successor trustees) to serve while you are alive and well, during any period of disability, and after your death.

• Stating trustee powers, general terms, and definitions. 

If you have any questions regarding the revocable living trust and its chapters, consult with a qualified estate planning attorney.

Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.