Why Would I Want a Revocable Living Trust in North Dakota

Download Why Would I Want a Revocable Living Trust in North Dakota

Post on 16-Jul-2015

23 views

Category:

Law

5 download

TRANSCRIPT

  • WHY WOULD I WANT A REVOCABLE LIVING

    TRUST IN NORTH DAKOTA?

  • Why Would I Want A Revocable Living Trust in North Dakota? www.germanlawgroup.com 2

    You may assume that trusts are only of value to people who are extremely

    wealthy. While it is true that wealthy people do use certain types of trusts, there

    is a trust "for the rest of us" called a revocable living trust.

    EFFICIENT CONTROL OF ASSETS

    When you convey assets into a revocable living trust, you are achieving your

    estate planning objectives, but you are simultaneously retaining efficient control

    of your assets while you are living.

  • Why Would I Want A Revocable Living Trust in North Dakota? www.germanlawgroup.com 3

    The grantor of the trust is the person who establishes the device. When you

    create the trust, you draw up a trust declaration. In this declaration, you name a

    trustee to administer the trust, and you also name a beneficiary who can receive

    monetary distributions from the

    trust.

    We should point out the fact

    that you can name multiple

    beneficiaries, and technically,

    there can be multiple trustees.

    You can act as the trustee and

    the beneficiary initially, so you

    can retain full control of the

    trust throughout your life. In

    the declaration, you name

    successors to assume these

    roles after you pass away.

    One of the advantages that you gain when you create a revocable living trust is

    the ability to leave behind specific instructions that the trustee must follow after

    your passing. You can direct the nature of the monetary distributions.

  • Why Would I Want A Revocable Living Trust in North Dakota? www.germanlawgroup.com 4

    If you want to, you can allow for limited distributions over an extended period of

    time to make sure that your beneficiaries do not burn through their inheritances

    too quickly.

    When you are selecting a successor trustee, you could choose someone that you

    know, but many people go a different route. It is possible to use a corporate

    trustee such as a trust company or the trust section of a bank. If you use a

    professional fiduciary, you can be sure that the assets in the trust will be

    administered in accordance with industry standards.

    PROBATE AVOIDANCE

    One of the most compelling reasons why you may want to consider a revocable

    living trust is the facilitation of

    probate avoidance. Probate is

    a legal process, and it takes

    place under the supervision of

    a court.

    Your personal property would

    be subject to the probate

    process before it could be

    distributed to the heirs if you

    use a will to state your final wishes. Probate would also enter the picture if you

  • Why Would I Want A Revocable Living Trust in North Dakota? www.germanlawgroup.com 5

    had no estate planning documents at all.

    This process is time-consuming, taking close to a year under ideal circumstances.

    If there are difficulties, the process could take considerably longer.

    In addition to the time consumption, there is the matter of money. Probate is not

    free, and money that is spent during probate could have otherwise gone to the

    surviving family members.

    INCAPACITY PLANNING

    When you are planning your estate, you should consider end-of-life issues. Many

    elders become

    incapacitated late in their

    lives, and this is

    something that you

    should plan ahead for in

    advance.

    If you were to create a

    revocable living trust,

    you could empower the

    successor trustee to

    administer the trust if you were to become incapacitated at some point in time.

  • Why Would I Want A Revocable Living Trust in North Dakota? www.germanlawgroup.com 6

    SUMMARY

    A revocable living trust can be a good choice as a vehicle of asset transfer for

    people who are of relatively ordinary means.

    When you create a revocable living trust, you do not surrender control of the

    resources. You can act as the trustee and the beneficiary initially, so you are the

    trust administrator, and you can receive distributions from the trust.

    Because the trust is revocable, you can rescind or dissolve the trust if you want

    to take back direct personal possession of the assets. As a result, your control is

    absolute.

  • Why Would I Want A Revocable Living Trust in North Dakota? www.germanlawgroup.com 7

    Assets that have been conveyed into a revocable living trust can be distributed to

    the successor beneficiaries outside of probate, and this is the primary advantage.

    In addition to the probate avoidance benefit, you can also prepare for latter life

    incapacity when you create a revocable living trust. It would be possible to

    empower the successor trustee to administer the trust in the event of your

    incapacitation.

    If you are interested in creating a revocable living trust, schedule a consultation

    with a licensed estate planning attorney. Your lawyer will fill you in on all of the

    details and help you accomplish all of your estate planning goals.

    REFERENCES

    Investopedia http://www.investopedia.com/articles/pf/06/revocablelivingtrust.asp Forbes http://www.forbes.com/sites/janetnovack/2012/10/14/the-forbes-guide-to-

    estate-planning/ Cornell University Law School Legal Information Institute http://webserver.rilin.state.ri.us/Statutes/TITLE33/INDEX.HTM

  • Why Would I Want A Revocable Living Trust in North Dakota? www.germanlawgroup.com 8

    About the Author

    Raymond J. German

    As an attorney in Minnesota and North Dakota, Raymond

    J. German provides a wide range of estate planning

    services to his clients, with a primary focus on helping

    them provide for the security of their loved ones, reduce

    estate taxes and avoid or at least minimize the costs and

    delays of probate, all with a well-crafted estate plan. Mr.

    German defines the mission statement for German Law

    Group, PC< as "Helping one family at a time pass on

    values, beliefs and finances, which can be shared for

    generations to come." Mr. German is well aware of the

    growing importance of estate planning and dedicates himself to informing the

    public of the need for careful attention to their specific situations. He is a

    frequent speaker on a variety of estate planning topics, regularly presenting

    educational seminars for the public as well as private groups.

    Raymond J. German approaches each challenge with not just solid expertise, but

    also remarkable enthusiasm and vigor. By constantly seeking simpler, better, and

    more effective ways of doing things, he continues to make a real difference in

    the lives of families and on the way estate planning is practiced by attorneys

    around the country.

    German Law Group, PC www.GermanLawGroup.com

    GRAND FORKS 2650 32nd Avenue South, Suite O

    Grand Forks, ND 58201 Phone: (701) 738-0060

    Toll Free: (800) 774-7576 Fax: (701) 738-0064

Recommended

View more >