Trusts are legal arrangements that give a person or a group of people the right to hold and manage specific assets. That simple definition aside, there are dozens of ways trusts can be set up and administered.
One general difference between estate planning trusts is that some are "revocable" (meaning that the indivduals can change their terms at any time, as long as they are mentally competent to do so) while others are "irrevocable" (they can't be changed or amended once created).
These days, the most common type of estate planning trust is a revocable living trust, which allows people to enjoy and control the trust's assets during their lifetimes and then automatically shift ownership of the property in the trust to a named trustee or trustees at death. The arrangement operates much as a will does, except that upon death, the trust property will not be processed through probate -- which can add administrative and legal costs and also delay the time it takes for the property to transfer to the beneficiaries.
Living trusts may not be a wise choice, however, if someone:
- Has set up most property ownership in joint tenancy or pay-on-death transfers.
- Owns very little valuable property.
- Doesn't have a person he trusts to oversee his property.
- Is involved in divorce proceedings, as some state laws bar creating such trusts once a divorce is filed.
This is a very succinct and helpful article in simple and straightforward language.
easy to read and understand; able to make a checklist of "to do's" from it
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I have a question: How do we protect a nursing home from using our mom's land payment ? she has a living estate will but we are not sure of what the rules are on this when and if she goes into a nursing home... we need to know so we can get this started in time.... does a living estate will protect this? my husband is the power of attorny and also has joint accounts with her...
Can MERF came back and get money out of checking accounts when you are consider below the average on Protected Resources Assessment by the state?
I has been hearing comments about the Estate Planning and always I had said to me " We have time to do it" Now I found myself beign the caregiver to my wife ( Alzheimer) . Your article has made me aware that time to do important things is always now. I let it pass and it's going to be more complicated now. Thanks, I'm beginning to prepare my Estate Planning today. Keep your good work. Heliokopter
super info for all people
If my Mother goes into a nursing home, can the nursing home get money from her living trust or can they put a lean on the trust and collect after settlement? If so, what can be done to protect her home and assets? Transfer of title, sell the home?