Revocable Living Trust

REVOCABLE LIVING TRUST

A revocable living trust does one main thing and does it well. It avoids probate. Any competent adult can establish a revocable living trust. A husband and wife can establish a trust together and be co-trustees of the trust. A revocable living trust is called living because it is created while you are alive. It is revocable because as long as you are mentally competent you can change, alter, amend or terminate the trust at any time. You are free to add property to the trust or remove property at your discretion. A revocable living trust becomes irrevocable (it cannot be changed) upon your death. A trust involves three parties. The GRANTOR is you. You are the person who creates the trust. The TRUSTEE is the person who agrees to accept your property and manage it as the trust agreement directs. You are usually the trustee during your lifetime. If you do a joint trust with your spouse, you will be a co-trustee with your spouse. Upon your death, or if you become incompetent, you will have named a successor trustee. The BENEFICIARIES are the people who will receive the income from the property in the trust and, with your direction, the property itself. A revocable living trust agreement is a document created by you to manage your assets during your lifetime and distribute the remaining assets upon your death. During your lifetime the trustee invests and manages the trust property. Usually you are the trustee. Many people as trustees hire a competent financial planner and manager to invest the trust assets. The trust agreement allows you to withdraw money or assets from the trust at any time, in any amount, and for any purpose. You are in control of your property. If you become incompetent, the successor trustee steps in and continues to manage your trust assets, pay your bills, and make investment decisions. This eliminates the need for a conservatorship. This is a big advantage. Upon your death your successor trustee is responsible for paying your funeral, all proper claims, income taxes, estate taxes, and real property taxes. The successor trustee will then distribute your assets to the proper beneficiaries in accordance with your trust. Your assets including cash, bank accounts, stock accounts, tangible personal property and real property must be transferred into the trust. This process is called "funding " the trust. It is the transfer of property out of your name and into the trust. If you own property in your name alone, it is not in the trust. You must place the property into the trust. You as trustee of your trust will own the property. The revocable living trust avoids probate. Probate is a process created by state law to transfer your assets to your beneficiaries. All assets owned by a decedent in his or her name alone require a probate. If your home is in your name alone, it would require a probate to transfer title to a beneficiary.

THERE ARE A NUMBER OF ADVANTAGES TO CREATING A REVOCABLE LIVING TRUST:

PRIVACY

You will have privacy because your trust agreement will not be filed with probate court. All probate documents are public record. The administration of a revocable living trust at the grantor's death is a private matter between the trustee and the beneficiaries. Unlike probate there are no public records to reveal the nature or amount of your assets or the identity of any beneficiary.

AVOID PROBATE

A revocable living trust avoids expensive multiple probate proceedings when you own real estate in different states. Only the state where the real property is located has jurisdiction over that real property. Not only would you have a probate in your state of residence but an ancillary probate would be required in the state where the property is located.

AVOID CONSERVATORSHIP

A conservatorship under probate court is often needed when a person becomes incapacitated or incompetent. This is a costly process. The conservatorship is created under probate court with the conservator managing the assets and paying the bills. The conservator is required to report to probate court on an annual basis. The conservator is required to have a court hearing for approval of all expenditures. Attorney fees are an annual occurrence.

MANAGEMENT OF ASSETS

The management and control of your property after your death or incompetence will continue without any interruption. Probate requires the liquidation of the assets. A revocable living trust allows for the smooth transition of the management of your assets to your successor trustee. There is no need for probate court approval.

ELIMINATION OF FEES - SAVE MONEY

With the avoidance of probate, you avoid costly attorney fees, probate costs, appraiser fees and publication fees. Attorney fees can easily run $10,000.00. Double this amount if you have property in another state which requires an ancillary probate.

TIIME - NO DELAY

Time is of the essence. Probate can easily take seven months to over a year before distributions are made to the beneficiaries. Property in the revocable living trust can be distributed to the beneficiaries shortly after the grantor's death thereby avoiding the delay encountered with probate administration. Also, probate court approval is not necessary to sell an asset or distribute the property. When a husband or wife dies there is no delay because the surviving spouse who is a trustee continues to administer the trust.

ELIMINATION OF CHALLENGES TO ESTATE

The standard Will can create family disputes. The Will can be challenged by any member of your family. This can be avoided if the assets are transferred into a revocable living trust.

CALL NOW. You need an experienced Minnesota Revocable Living Trust Attorney/Lawyer and you need one now. Please click on the phone symbol below OR fill out the contact box located on this page OR call 952-837-1900 to schedule a FREE consultation so we can discuss your estate plan. Your estate plan evaluation is FREE. The parking is FREE and there will be a FREE cup of coffee. We grind the coffee beans. We have written over 12,000 Wills and Trusts. Fees will be fully discussed before you are asked to make any commitment. We look forward to hearing from you.

Lange Law Firm, P.A.
Highland Bank Building, 5270 West 84th St, Suite 300, Bloomington, Minnesota 55437-1385
Phone: (952) 837-1900, Fax: (952) 835-2236, Email: info@willandtrust.com