Cut company in the Revocable Living Trust

Aug 6th, 2022
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How to cut company in the Revocable Living Trust

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hey so Im Paul Rabelais and in this video were going to talk about Im not so well known secret to naming or titling your living trust okay so Im Paul rambling Im an estate planning attorney I help our clients get and keep their legal affairs in order and many people around the country they set up revocable living trusts because they want assets titled in the name of their trust when they die because assets in their trust they avoid that court-supervised an attorney involved probate or succession proceeding assets and a living trust dont go through that you name a successor trustee may be a child or adult children of yours who you will designate to be able to disperse the assets out of your trust to your trust beneficiaries when you die without any attorney in court in court involvement now when someone sets up that living trust theres always going to be a name or a title to the trust and then their assets at least the assets that would have to go through probate if they remain i

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Trust funds are legal entities that provide financial, tax, and legal protections for individuals. They require a grantor, who sets it up, one or more beneficiaries, who receive the assets when the grantor dies, and the trustee, who manages it and distributes the assets at a later date.
The person who makes decisions about the money or property in the revocable living trust. They are called the trustee. In general, during the life of the grantor, the grantor is their own trustee. A trustee can be an individual or a financial institution.
Disadvantage: You Must Retitle Assets This means that assets typically need to be retitled. For example, if you want a trust to own your home, youll need to draft a new deed with the trust as owner. The same is true if you want the trust to own your car or boat. Some assets do not have a title.
However, this level of access also makes you the effective owner of the trust and its assets. This means that courts and creditors can fully access the contents of a revocable trust that you form because its assets are indistinguishable from your own.
A living trust can help you manage and pass on a variety of assets. However, there are a few asset types that generally shouldnt go in a living trust, including retirement accounts, health savings accounts, life insurance policies, UTMA or UGMA accounts and vehicles.
Thus the ultimate control of a trust in fact lies with the appointor, and this is even more important than the shareholders of a corporate trustee.
After the Trust is written and established, the Trustee holds the power to administer the Trust as it is written. The Trustee has to follow the rules written within the Trust. Some Trusts can be revoked or changed after theyve been established.
Revocable living trusts have a few key benefits, like avoiding probate, privacy protection and protection in the case of incapacitation. However, revocable living trusts can be expensive, dont have direct tax benefits, and dont protect against creditors.

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