WILLS & TRUSTS  
TOPICS
  1. A LAST WILL AND TESTAMENT IS A DOCUMENT THAT DOES THE FOLLOWING:
  2. A REVOCABLE LIVING TRUST IS...
   
A LAST WILL AND TESTAMENT IS A DOCUMENT THAT DOES THE FOLLOWING:  
Defines who will receive property not held jointly with someone else, that is not in a Paid on Death account, not in any investment products that have designated a beneficiary (i.e., life insurance, IRA's, Stocks, Bonds, pensions to name a few).

Allows a person to name a Guardian for any minor dependents left behind needing care

Allows a person to designate an administrator of the estate. Referred to as a Personal Representative.

  
 
A REVOCABLE LIVING TRUST IS…  
A document that creates a separate entity that holds all of your assets and allows a person to designate how the assets are used during the lifetime of the creator of the Trust as well as after the creator's death.

Tax neutral. Meaning there are no tax benefits to using this type of trust.

Best suited for the following circumstances:

• Property located in multiple states

• When a person wants to set aside funds for long-term care inside the trust and dictate what type of care is given, who will give that care, and how much is to be spent on that care while the creator is alive. (This is helpful when an elderly person is concerned about how he/she will be cared for if he/she becomes incapable of handling such decisions at that time.)

Typically more costly upfront when compared to creating a Last Will and Testament.

Sometimes referred to as a probate avoiding document. For the most part, Living Trusts help a person avoid the probate process itself. However, the claims of creditors are not extinguished unless a mini-probate is opened in order to place creditors on notice and giving them an opportunity to file a claim against the estate, should there be any.

Glenn Law Offices tries to make every effort to avoid complicating a client's life and finances. Revocable Living Trusts are only used when appropriate (ensure property in multiple states is managed properly, or long-term care is a concern to a client, or when the person dies and wants to spread distributions of an inheritance to a beneficiary over several years).

There are more sophisticated trusts related to tax savings. These types of trusts should be explored when an individual, or a husband and wife have assets totaling in excess of $2,000,000 in 2006. These types of trusts are referred to as credit shelter trusts and family trusts, “Irrevocable Life Insurance Trusts” (ILIT's), Charitable Remainder Trusts. Used in various combinations, they are designed to take advantage of tax saving laws.

None of these documents should be drafted without the help and guidance of an Elder Law attorney. There are too many potential legal issues that must be addressed in order to properly accomplish your goals.