Uncategorized Living Trust Q&A

Living Trust Q&A

What control do I have over my assets in the Trust? As the Trustor, person who created the trust, you have total control over your assets.  Now when you add things to the trust or sell property you will sign as trustee.

Is the Living Trust valid in all fifty states and what if I move?
A Living Trust is valid in all fifty states.  If you move I recommend asking a local attorney what laws differ and if your trust needs to be updated.  Some common differences are probate codes tax statutes, rule against perpetuities, and property laws.  Picking the situs of your trust and allowing your trustee to change the situs is also important.

Can I have a living Trust if I’m married?  Spouses can have a joint trust or two separate trusts.  It is even possible to have a joint trust and hold property separately within the joint trust.  Even unmarried people can have a joint trust which is a good choice for co-property owners.

How does one settle the Estate? If the Living Trust is properly funded then no probate proceeding needs to take place.  The successor trustee will follow the directions of the Trustor and distribute the assets or hold them in trust accordingly.

Will a living Trust affect my tax deductions and social Security Benefits? A Revocable Living Trust has no effect on income nor did it have any effect on social security benefits.  You will continue to file the Individual tax return FORM 1040 just as you did in the past.

Can the Successor Trustee make changes to the trust?   If there are two or more trustors then the trust may allow for a surviving trustor and trustee to make changes even if one trustor has passed away.  When all trustors have passed away the trust becomes irrevocable and the successor trustees must follow the directions of the trust.

Can I revoke my Living Trust?  The living Trust can be changed and revoked anytime up until you pass away.

How often do I need to update my Living Trust? It is important to look over your estate planning documents whenever there is a change in the family like marriages, divorces, deaths and births.  Tax and estate laws change often and it is important to make sure that your beneficiaries don’t get stuck with paying high estate taxes.

Why choose Marchello Law? We are a family practice who focus on making easy to read documents that properly get your property to your loved ones without court.  Frank and Judy Spees have been practicing law for over 35 years together making documents that cater to each client.  Having Kristen Spees Marchello is a huge benefit because she will be around when the time comes to walk your trustee through the process.


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