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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.


TIME - 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.

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Disclaimer Trust


This document is a will that provides for funding of a trust by the surviving spouse for estate tax saving purposes. The surviving spouse can determine the amount of assets to be put into the trust after the deceased spouse's death. The trust provisions in the will can be drafted to provide for trust income payments to the surviving spouse and for access to the trust assets by the surviving spouse when required to maintain the surviving spouse's standard of living. In addition, when minor children are involved, the trust can be written to provide for management of assets passing to the minor children at the death of the surviving spouse and to provide for retention of the trust assets past the age of 21. Parents can decide to arrange for transfer of all trust assets to their children at a specified age or may specify transfer of trust assets in portions at specified ages.

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Unified Credit Trust


This document will automatically provide for the creation of a trust to prevent inclusion of assets in the surviving spouse's estate at death. These assets would otherwise be subject to estate taxes. This type of will relieves the surviving spouse of the decision making required to put assets into a trust under a disclaimer trust will. In addition, the automatic transfer of assets into a trust will assure that remaining trust assets pass to the surviving children rather than the wife or husband of the surviving spouse if there is a remarriage. As with the disclaimer trust, the trust can be designed to provide for payment of interest and principal to the surviving spouse and for retention of trust income and principal from children under the age of 21 until the age(s) specified by the parents in the trust document.

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Child's Trust


This document can be used by parents to arrange for assets to pass to children through a trust. The trust can provide for financial management of the trust assets by an individual(s), bank, or trust company after the parents' death. Further, the parents can provide for receipt of the trust income and principal by their children at an age(s) after 21. The child's trust can be drafted as an addition to the provisions contained in a basic will so that separate documents are unnecessary.

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Minor's Trust


This document enables a donor to claim the $10,000 per year federal gift tax exclusion for gifts made to a minor in trust. The donor can arrange for financial management of the trust assets during the period prior to the minor becoming an adult. While the minor must be granted access to the trust assets at the age of majority, the donor may arrange for continuing trust management of the assets for the benefit of the gift recipient.

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Supplemental Needs Trust


This document provides for management and distribution of assets for a disabled person receiving government medical assistance without causing ineligibility for these benefits. This trust must be funded by someone other than the trust beneficiary or trust beneficiary's spouse. A parent, grandparent, or legal guardian may contribute funds to the supplemental needs trust without causing the beneficiary to lose medical assistance benefits.

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Special Needs Trust


Coming soon…


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Trust

   Revocable Living Trust

Disclaimer Trust

   Unified Credit Trust

   Child's Trust

   Minor's Trust

   Supplemental Needs Trust

   Special Needs Trust

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