owner death

What Happens to a Revocable Living Trust When the Owner Passes Away?

owner death

There are many different types of trusts that people choose to use for estate planning purposes. The most basic, however, are known as revocable living trusts. You can set up a trust like this by contacting a local estate planning lawyer and discussing which assets you hope to place into or distribute through the trust.

This involves the grantor or the creator setting up a trust that keeps that person in control while they’re still alive.

This can also include the appointment of a separate trustee to manage the assets inside, but many revocable living trusts allow control and flexibility, which is why the creator stays involved over the course of their life. In the event that any changes are needed for the trust, the creator can revoke or amend it. The trust then owns the assets, but any dividends, income and capital gains are taxed to the creator while they are still alive.

The tax ID number for many revocable living trusts, for example, is also the creator’s social security number. In most cases, when the grantor of the trust passes away, it becomes irrevocable. That means it may be subject to tax trust rates for income that accumulates inside the trust, however, some deductions may apply, which means that higher tax rates may not be added. The most common deduction is known as distributable net income.

Trusts can be a very powerful and yet complicated asset management tool, depending on how they are structured. Finding an estate planning attorney who can walk you through the pros and cons and discuss your next steps is helpful. Our New Hampshire and Maine trust lawyers can help you with your entire estate plan.

Why Would Someone Revoke a Trust?

What if you put together an estate planning tool now, but it’s no longer relevant for what you want in the future? Coming up with a plan that addresses your current needs but also allows for flexibility over the years can be a challenge. This is why it’s best to find a NH estate planning lawyer who can help you as your needs evolve.

A trust is a powerful estate planning tool. It gives you privacy, flexibility and the opportunity to control what happens to the assets you place inside the trust. A revocable trust, however, comes with an additional layer of flexibility in that you can revoke this trust or amended at any point in time. This raises the question of why someone would want the revocable benefits of a trust. Things can change as you go throughout life.

An estate plan that made sense previously may not align with your current values and goals. It is always a good idea to talk to your estate planning attorney about what to do with any expected changes in your estate, including when it makes sense to revoke an existing trust. You may be able to make amendments to the trust to accomplish your goals. Working with your lawyer can help you understand the implications of any decisions made around the trust and other factors you should keep in mind as you update various aspects of your estate plan. Revoking a trust might make sense for your goals, but you may wish to amend it instead or establish new estate planning vehicles to accomplish new goals.



How To Avoid Arguments With Siblings When a Parent Passes Away

The loss of a parent has many implications for surviving family members, but it is all too often the case that siblings can end up in the midst of disputes with other siblings. Dividing up the assets of an estate is not always easy, and when people do not agree on the best way to do this or the interpretation of the will, this can lead to extensive and expensive legal actions.parent

As a parent, you can do some proactive planning with the help of a knowledgeable lawyer to avoid these disputes, making sure that your intentions are very clear and providing a streamlined process for passing on these assets. Planning before you pass away can help to address the possibility of these challenges and can also reduce the time and money spent resolving them if there is confusion.

You can give directions for what you intend to happen by spelling things out in your will. If you intend to disinherit someone from your will, for example, or give someone a disproportionate amount, it may be beneficial to have these conversations in advance so that they are not caught off guard and frustrated enough to file a will dispute or other conflict. You can also use a trust to ensure that your property disposition plans are clearly spelled out.

A revocable trust, for example, can be used to make any changes up until the point of your death. Putting property in the joint name of a parent and a child so that the asset passes automatically is another option, but may not be the best one depending on whether or not you are able to use a trust. Set aside a time to meet with an experienced estate planning lawyer to discuss the specifics of your situation.



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Should I Use A Revocable Or Irrevocable Trust?

There are many different trusts out there that can help you for estate planning purposes, but it is essential that you work with an estate planning lawyer to help you decide which strategy is right for you.irrevocable trusts

You may have heard of different kinds of trusts, such as a special needs trust, a grantor trust or a testamentary trust. All of these are either irrevocable or revocable. A revocable trust simply means that it can be terminated or changed at any point in time while the creator of the trust is still alive. This means that creator could terminate the trust completely, transfer different assets into the trust, remove assets already inside it, remove or add beneficiaries or change the terms of the trust regarding how assets should be distributed or managed.

Revocable trusts will automatically become irrevocable when the creator passes away. An irrevocable trust, however, does not allow changes or termination. If you create an irrevocable trust during your lifetime, any assets transferred into that trust must stay there and you cannot remove or add beneficiaries or change the terms of the trust.

Flexibility is a leading reason why many people choose to use revocable trusts, but revocable trusts do not provide the same kind of protection against creditors when compared with an irrevocable trust. To learn more about what might be most appropriate for your plans, contact an experienced and qualified estate planning lawyer today.

Our New Hampshire estate planning lawyers have helped many other residents to determine the best way to proceed with a trust. Contact us today for a personalized consultation about your needs.

Advantages of Using a Revocable Living Trust for Asset Transfer

There are many different advantages to using a revocable living trust as part of your estate planning. If an accident or an illness leaves you incapacitated but still alive, your successor trustee is able to handle your financial affairs without the need for appointing a conservator or a guardian by the court.

Another major benefit to using a revocable living trust is that if the beneficiaries of your trust are minor children or others who may not be capable of handling an inheritance as you intend, the trust can keep those assets and hold them until those individuals reach a more mature age.

This gives a great deal more control and flexibility to the creator of the trust for those who may be concerned about children who are spendthrifts or not capable of properly managing a significant inheritance.

You can also avoid the hassle, time, and expense of multiple probate proceedings if you own real property in more than one state. A husband and wife may even be able to maximize their federal estate tax exemptions when partnering with an experienced revocable living trust attorney to craft this document. Finally, it is more difficult to contest a living trust.

When a will is contested, the assets are frozen and they cannot be distributed until the claim has been addressed. Assets placed in a living trust, however, are not frozen pending the outcome of a legal challenge. Discover more about the benefits of using a revocable living trust by scheduling a consultation with an experienced estate planning lawyer in Maine.



What Happens If I Need to Settle a Revocable Trust After the Trust Maker Has Passed Away?

Most people will not have had the experience of being named a successor trustee in charge of settling a person’s revocable living trust after a loved one passes away. There are many different steps involved in closing out this trust and all of these should be approached with care and with the possible support of an experienced probate lawyer.

The first step to settle a revocable living trust is to locate all of the important papers and estate planning documents owned by the creator of the trust. You will also need to look at their will in addition to trust documents, but you might also encounter things, such personal property memorandums or memorial instructions.

All of these documents should be kept in a safe place until they can be passed on to the attorney helping you with the administration of the trust. You might also find other things that will not be included in their probated estate, such as certain brokerage account statements or life insurance policies.

After you’ve looked at all of the important documents, read through the specific provisions of the individuals revocable living trust. Make note of the beneficiaries of any residuary trusts, personal effects or specific bequests and whether or not a person has been named to serve as successor trustee.

You’ll also want to make a list of how each asset is titled from the list of what the decedent owed and owned as well as any questions you may have for your estate planning attorney in NH.