Living trusts are deemed as the best estate-planning tool that all people would require someday. However, it would not be wrong to suggest that a living trust might not solve all your problems, but could be an important piece of your estate planning toolbox.
Let us delve into what you should ask the San Antonio Estate Planning Lawyer about living trusts. To find what suits your specific needs, consider asking your lawyer the following questions.
- What kind of property could go in a living trust?
Rest assured that most of your properties could go into your living trust. However, at times life insurance and specific retirement accounts are eligible for living trust. By placing more property in the trust, you would make the trust highly beneficial.
- Who should be your trustee?
Most people would name themselves as trustees to manage the trust assets during their lifetime. You could choose anyone or a corporation as your trustee as well. When you name yourself as a trustee, you would require naming a successor trustee who could step up for managing the trust after your death.
- Can a living trust avoid probate and estate taxes?
A revocable trust does not avoid estate taxes applicable by the state or the federal government. However, a special kind of trust would pass assets directly from one spouse to another. It would help avoid estate tax. Rest assured that living trusts do not pass through probate. As a result, your estate need not pay any probate fees or costs.
- Do you require a power of attorney?
Living trusts have all your assets placed under the management and ownership of a trust. It would incapacitate you, as they are already handling the assets for you. A majority of lawyers would recommend drawing up a power of attorney that would authorize someone else to make financial and legal decisions on your behalf. It would help you to have someone to question and handle your decisions, provided you were unable to do so.
- How should you create a living trust?
For creating a living trust, you require living trusts forms for your state. By completing the forms and signing them in front of a notary, ensure to name a trustee and create the terms for your trust. It would be pertinent to mention here that the trust would not be functional until you transfer ownership of assets into it.