1. The purpose of trust
2. Information concerning Truster, Trustee, and Beneficiary
3. Documentation concerning all financial assets

 Revocable Trust:

A revocable living trust stipulates that the trustor’s assets are their own until death, after which they become the property of chosen beneficiaries. The living trust allows a “trustee” to manage the assets until the trustor’s death. Many people name themselves as the trustee, but the trustee can be anyone of the trustor’s choosing. The trust will stipulate that the trustee must deal with the trustor’s assets in an approved way. Under a revocable living trust, the trustor is taxed on the assets in question and any income they may generate until death, unless someone else is the trustee

Advantages:

1. A living trust is recommended because it helps avoid probate, a rather long and drawn out process of verifying the will, or the expenses that go along with it;
2. Probate applies to the property owned at death but will not apply to the property involved in the trust, as that is property controlled by the trustee;
3. Living trusts are also confidential as oppose to a probate proceeding which is available to the public.
4. Revocable living trusts can be annulled any time until trustor’s death allowing you to change your mind;
5. Assures uninterrupted income and access to principal for family beneficiaries;
6. Eliminates time delays in settling the estate–the successor trustee can immediately disburse the funds as indicated in the living trust agreement.

Irrevocable Trust

 An irrevocable trust may not be changed once it is signed, unless the beneficiary approves of the change. There are tax advantages to signing an irrevocable living trust, as it stipulates that the trustor is no longer considered the owner of the assets put into the trust. One spouse may sign an irrevocable living trust so that their estate goes to the other spouse as a trustee and vice versa.

Advantages:

1. When one spouse dies, the assets they put into the trust will not taxed, because they have now been transferred to the trust itself
2. An irrevocable trust will also enhance eligibility for Medicaid as long as the trustor won’t need it for another 5 years;
3. Provides for property management or disbursement;
4. Protects from creditors who are not allowed to claim properties effectively placed in an irrevocable trust.

Charitable Trust

A charitable trust transfers truster’s assets to a charity. This type of trust will usually be tax exempt. Trusters may generate a will that leaves their assets to a charity before they die such that they will receive a tax deduction, or, if they leave their assets to a given charity after they die, their estate will receive a tax deduction.

Special Needs Trust

A special needs trust must be completed if the trustor wishes to leave their assets to someone who is disabled. Unfortunately, under traditional trusts, certain assets such as large amounts of cash, would render the beneficiary ineligible for Supplemental Security Income or Medicaid if the beneficiary is disabled. Therefore, signing a special needs trust allows a trustee to handle the money in such a way that benefits the disabled beneficiary, as the presence of a trustee allows the beneficiary to still apply for SSI and/or Medicaid.

A living trust is recommended because it helps avoid probate, a rather long and drawn-out process of verifying the will, or the expenses that go along with it. Probate applies to the property owned at death but will not apply to the property involved in the trust, as that is property controlled by the trustee. Living trusts are also confidential as oppose to a probate proceeding which is available to the public. Revocable living trusts can be annulled any time until the trustor’s death allowing you to change your mind.

Abstract of Trust

An abstract of trust is a document provided that will summarize the trust but omit the name of the beneficiary.

Attorney Certification of Trust

A Certification of Trust is issued as a statement to prove that the attorneys involved in its creation are familiar with the contents of the trust and that it is valid under any applicable state trust laws.

Healthcare Directive

A healthcare directive states what specific measures the trustor would like taken in the event that they are dying. The healthcare directive is drafted to dictate who is in charge of medical decisions (your “agent”), preferred specific care, organ donation preferences, and doctor of choice. It should also contain the trustor’s signature and the signature of two witnesses. After signing, a copy of the healthcare directive should be sent to the agent, doctor, and healthcare providers.

Power of Attorney

The trustor may grant an agent power of attorney over certain decisions, such as financial or medical matters that apply to them. They may grant nondurable power of attorney, which will expire when they become incapacitated. They may also grant durable power of attorney, which will continue even after they are incapacitated. Springing power of attorney may also be granted, such that it will take effect only in the event that the trustor is incapacitated a certain way. To be incapacitated is defined as not understanding the gravity of the decisions they are making.

Do I still need a will if I set up a living trust?

• Yes you do. Wills deal with property that is not included in the living trust.

Can I include property in my trust if I still owe money on it?

• Yes you can. Houses with mortgages on it is a very common example of a property in trust.

Why should I make a living trust?

• Property left thought eh trust does not have to go through probate court. Probate court supervised process of paying your debts and distributing your property to the people who inherit it.