Problems with Unfunded Revocable Trusts

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Problems with Unfunded Revocable Living Trusts

Howard H. CollensGalloway and Collens, Pllc

A Revocable Living Trust is intended to:

Hold assets during a persons life

Provide for administration upon incapacity

Provide for administration upon death

Avoid probate

A Trust Is Like A Bucket

It only controls those assets that are titled into it

Certain images and/or photos on this page are the copyrighted property of 123RF Limited, its Contributors or Licensed Partners and are being used with permission under license. These images and/or photos may not be copied or downloaded without permission from 123RF Limited.

What Problems Arise If Certain Assets Dont Make It Into The Bucket?

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Problems During Life

Upon incapacity of Settlor, may require establishment of Conservatorship through Probate Court

Asset is not controlled by Trustee

Problems with Power of Attorney Agent who is different than Trustee

Common Problems Post Death

Blank Beneficiary

Lost Deed in the Drawer

Unintended Joint OwnershipsCertain images and/or photos on this page are the copyrighted property of 123RF Limited, its Contributors or Licensed Partners and are being used with permission under license. These images and/or photos may not be copied or downloaded without permission from 123RF Limited.

Consequences

Probate Court involvement

Unintended control of the estate

Unintended distribution patterns

Longer administration

Shorter administration

Certain images and/or photos on this page are the copyrighted property of 123RF Limited, its Contributors or Licensed Partners and are being used with permission under license. These images and/or photos may not be copied or downloaded without permission from 123RF Limited.

Pour over will / Small estate affidavit different than trust / Probate plus Trust Admin/ Hold until 18 or older7

A Caveat

Not ALL assets should go into the TrustPre-tax investments like IRAs and 401ksSpecial CircumstancesIntended Joint OwnershipsLadybird Deeds

Certain images and/or photos on this page are the copyrighted property of 123RF Limited, its Contributors or Licensed Partners and are being used with permission under license. These images and/or photos may not be copied or downloaded without permission from 123RF Limited.

Optimal Funding Times

At the Creation of the TrustAdvantage of getting it donePossible loss of protectionAnnual reviewCoordination by Attorney, CPA, Financial AdvisorAt DeathBeneficiary Designation

Certain images and/or photos on this page are the copyrighted property of 123RF Limited, its Contributors or Licensed Partners and are being used with permission under license. These images and/or photos may not be copied or downloaded without permission from 123RF Limited.

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Howard H. CollensGalloway and Collens, PLLC26075 Woodward Ave, Suite 200Huntington Woods, Michigan 48070248.545.2500GallowayCollens.comHoward@GallowayCollens.comTwitter: @howardcollens @probatelawmi @realestatelawmi

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