ArticleMap.com

Living Trusts and Estate Planning

Copyright 2006 Ronald Hudkins

There are many ways to protect assets for your loved ones. One way is to use a living trust. Living Trusts are routinely used by average persons, not just the wealthy, to avoid the high cost, publicity and inconvenience of probate. Property placed in an irrevocable trust will be excluded from your financial picture, for Medicaid purposes. If you name a proper beneficiary, the principal that you deposit into the trust (and possibly any income generated) will be sheltered from the state and can be preserved for your heirs. Typically, though, the trust must be in place and funded for a specific period of time for this strategy to be an effective Medicaid planning tool. For information about Medicaid planning trusts, consult an experienced attorney.

A trust has three parties - a donor, trustee and beneficiary. The donor sets up the trust, the trustee manages the property in the trust, and the beneficiary gets the use and enjoyment of the property. A person who sets up a living trust wears all three hats, donor, trustee, and beneficiary.

After a living trust is set up, it must be "funded". This involves changing the title of your assets, such as your home and your bank accounts, into the name of the trust. You maintain complete control over the money and the property in the trust. You can buy, sell, trade, or do whatever you want with your property, just as if the trust did not exist.

A living trust can be easily changed to meet the needs and goals of you and your family. In addition, the trust can provide for management of your assets in the event you become ill or incapacitated during your life. When used together or with a durable and health care power of attorney, it can help completely avoid expensive guardianship proceedings.

Upon your death, the person you have designated as "successor trustee," usually a child, automatically takes over management of your assets. Your successor trustee settles your affairs, and then distributes your money and property to your heirs.

Although the purpose of a trust, avoiding probate is simple, a trust is a complex legal document. There may be tax issues involved, and the terms of the trust must be thought through and drafted with great care and skill. Therefore, a trust should only be prepared by an attorney who is experienced in the field of estate planning, and who will stand behind his or her work. Those who purchase mail order trust kits advertised in the back of magazines, or who utilize the services of non-attorney door-to-door salesmen, are taking great perils with one of the most important documents of their life. On the other hand, a properly drafted living trust will lighten the burden that death places on your family, and will greatly simplify the process of transferring your assets.

Article Source: http://www.articlemap.com

The author, Ronald E. Hudkins agressively coordinates with government agencies and organizations to compile information to help consumers avoid deceptive business practices. A description of his education and experience can be found at www.AssetProtectNow.com .

Please Rate this Article

Not yet Rated

Click the XML Icon Above to Receive Personal Finance Articles Via RSS!

Additional Articles From - Home | Finance | Personal Finance

Credit Score Repair Tips - By : Richard Lakin.
Getting Educated Through Specialists Can Only Help Your Wallet - By : Caden Flynn
Financial Breathing Room From Simple Credit Repair Letter - By : Darren Cason
Savings Tricks and Tips for Presents - By : Landon McGehee.
Credit Card Counseling - Getting Out of Debt - By : William Blake.
Controlling Your Money - Call it a Spending Plan - By : Landon McGehee.
Your Own Offshore Account - By : Amy Nutt.
Understanding The Credit Score Rating Scale - By : William Blake.
Impact on Net Worth with Loans and Refinancing - By : Darren Cason
Money - Do You Earn Money To Spend Impulsively? - By : Tina T Willer

	Print This Article
	Post Comment
	Add To Favorites
	Email to Friends
	Ezine Ready

Submit Articles
Member Login
Top Authors
Most Popular Articles
Submission Guidelines
Ezine Notifications
Article RSS Feeds

Press Release
About Us
Link To Us
Contact Us
Privacy Policy
Terms of Service

Sponsored Ads:

Recommended Hosting

Related Sister Site:
Submit Health Articles Now