Living Trust / Estate
What is the difference between a will and a trust?
A Trust is a way of transferring your property to
an artificial legal entity or "person" (the Trust) before your death, while
still having the use and/or control of it during your lifetime. There are two
kinds of Trusts, revocable and irrevocable. If the Trust is revocable you can
change it or decide to take the property back any time during your life. If the
Trust is irrevocable, you can’t change it once you have set it up. If you name
yourself as the sole Trustee of your Trust during your lifetime, you will be
able to manage the Trust while you are alive.
The Trust owns the legal title to the property in it while you are still alive, and since a Trust
does not end at your death, it will still own the property when you die.
You put instructions in the Trust for how the Trustee, or person
controlling the Trust, should distribute the Trust property, and the Trustee
will carry out those directions.
Only property owned by the deceased at
the time of death has go go through the court process called “probate,” so the
property in the Trust can be distributed without going through the probate
process. Probate is the legal process which inherited
property goes through in order to transfer the title of the property from the
decedent to the beneficiary. If you have a large estate, or even a small estate
with real property (i.e. real estate), it is often advantageous to set up a
Trust, as it is usuall far less expensive for your heirs when you die.
A Will is a document that transfers property to others after your death. Because
you still own the
property at the time you die, all the property
transferred in the Will must go through the probate process, which is often slow
and costly. Even people with Trusts sometimes have other property that is
transferred by Will and has to pass through probate.
Forms
http://secure.uslegalforms.com/cgi-bin/forms/query.pl?S-C-CA-B-personal~planning|alllaw
Why are living trusts Used?
Living trusts provide lifetime and after-death property management or carry out tax-related estate planning. Some persons use trust to avoid probate. If you are serving as your own trustee, the trust instrument will provide for a successor
trustee upon your death or incapacity and court intervention is not required. Living trust are also used to manage property. If a person is disabled by accident or illness, the successor trustee will manage the trust property.
Trustee
Generally, you will serve as the
initial trustee of your living trust. If husband and wife
create a living trust, they serve as co-trustee. A living trust provides for
successor trustees, named by your to serve in the event of incapacity or death. A will
with a testamentary trust only names trustees to serve after death because any
trust contained in the will is not created until you die.
What are the advantage of a will?
Although probate fees may be incurred at death, the cost of preparing a will is substantially
less than a living trust.The estate may not need to be probated when an estate
consists entirely of joint accounts, payable on death and transfer on death accounts, transfer on death deeds and joint tenancy property.Possible after death income tax savings. If you are in high income tax bracket and own assets that will continue to produce substantial income after death, probate may result
in income tax savings because both the estate and any trust created in will are separate taxpayers and income can be split them through proper planning.
What is the difference between a will and a trust?
A Trust is a way of transferring your property to
an artificial legal entity or "person" (the Trust) before your death, while
still having the use and/or control of it during your lifetime. There are two
kinds of Trusts, revocable and irrevocable. If the Trust is revocable you can
change it or decide to take the property back any time during your life. If the
Trust is irrevocable, you can’t change it once you have set it up. If you name
yourself as the sole Trustee of your Trust during your lifetime, you will be
able to manage the Trust while you are alive.
The Trust owns the legal title to the property in it while you are still alive, and since a Trust
does not end at your death, it will still own the property when you die.
You put instructions in the Trust for how the Trustee, or person
controlling the Trust, should distribute the Trust property, and the Trustee
will carry out those directions.
Only property owned by the deceased at
the time of death has go go through the court process called “probate,” so the
property in the Trust can be distributed without going through the probate
process. Probate is the legal process which inherited
property goes through in order to transfer the title of the property from the
decedent to the beneficiary. If you have a large estate, or even a small estate
with real property (i.e. real estate), it is often advantageous to set up a
Trust, as it is usuall far less expensive for your heirs when you die.
A Will is a document that transfers property to others after your death. Because
you still own the
property at the time you die, all the property
transferred in the Will must go through the probate process, which is often slow
and costly. Even people with Trusts sometimes have other property that is
transferred by Will and has to pass through probate.
Forms
http://secure.uslegalforms.com/cgi-bin/forms/query.pl?S-C-CA-B-personal~planning|alllaw
Why are living trusts Used?
Living trusts provide lifetime and after-death property management or carry out tax-related estate planning. Some persons use trust to avoid probate. If you are serving as your own trustee, the trust instrument will provide for a successor
trustee upon your death or incapacity and court intervention is not required. Living trust are also used to manage property. If a person is disabled by accident or illness, the successor trustee will manage the trust property.
Trustee
Generally, you will serve as the
initial trustee of your living trust. If husband and wife
create a living trust, they serve as co-trustee. A living trust provides for
successor trustees, named by your to serve in the event of incapacity or death. A will
with a testamentary trust only names trustees to serve after death because any
trust contained in the will is not created until you die.
What are the advantage of a will?
Although probate fees may be incurred at death, the cost of preparing a will is substantially
less than a living trust.The estate may not need to be probated when an estate
consists entirely of joint accounts, payable on death and transfer on death accounts, transfer on death deeds and joint tenancy property.Possible after death income tax savings. If you are in high income tax bracket and own assets that will continue to produce substantial income after death, probate may result
in income tax savings because both the estate and any trust created in will are separate taxpayers and income can be split them through proper planning.