Shade circle in the Revocable Living Trust in a few clicks

Aug 6th, 2022
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How to shade circle in the Revocable Living Trust

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okay so in this video were going to talk about ten provisions every revocable living trust should have so Im Paul Rabalais Im an estate planning attorney every morning at 10 a.m. Central time check in to this YouTube channel where Im going to give you another educational video that will help you protect what you have for yourself and your family all right I want to give you a little bit of introduction to this topic and then jump in to the ten necessary provisions okay when people get their legal affairs in order they do several different things yes they they provide for where their stuff will go when they die how they want to leave it to their spouse if theyre married to their children if they have children or grandchildren to others and that all is very necessary and very appropriate appropriate in addition to designating you know how things are to be distributed when when you pass away many people also want to simplify or streamline that process of getting their estate settled

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Unlike a will, which becomes a public document when its probated, a living trust offers a higher level of privacy. The terms and details of the trust remain confidential, allowing for a transfer of assets without public knowledge.
A living trust, unlike a will, can keep your assets out of probate proceedings. A trustor names a trustee to manage the assets of the trust indefinitely. Wills name an executor to manage the assets of the probate estate only until probate closes.
Disadvantages of a living trust The Income Tax Act states that trusts must dispose of their property 21 years after their creation at the latest meaning that taxes must then be paid. Living trusts should include an ultimate distribution clause that defines when and how the assets will be distributed.
A will manages what happens to your assets after death, but a trust goes into effect as soon as you sign the paperwork, says Cyndy Ranzau, wealth strategist with RBC Wealth Management-U.S. A trust can dictate what happens while youre alive.
A trust is considered a taxpayer in Canada even though it is not considered a legal entity. A trust pays tax at the highest personal marginal tax rate on its taxable income and doesnt have the benefit of individual tax credits.
The disadvantage of creating a living trust versus a will is the cost. On average, a will costs between $0$1,000 to create. But because of its complexity, a living trust costs between $139$3,000 to create and between $2,500$7,000 to maintain.
Irrevocable trusts The assets move out of your estate, and the trust pays its own income tax and files a separate return. This can give you greater protection from creditors and estate taxes.
There are many types of assets that can be included in a living trust in Canada, including bank accounts, real estate, investments, and cryptocurrency.

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