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Estate Living Trust

Posted on: 17th Jan, 2006 09:05 am
My dad deeded 50% of his property to me (I own the other 50%) He wants an Estate Living Trust processed. How does this benefit me? Who proces this Estate Living Trust? My dad or me? Can it be changed at anytime? If so, by whom?
BeneHi Erica,

Welcome to MortgageFit Forums.

Estate living trust is beneficial and is gaining popularity today. This trust is created to hold ownership to an individual's assets during the lifetime of the person and is distributed to heirs after the grantor's death.

Here a person is to be named by named by the individual owning the property, who is going to serve as a trustee and will follow the terms set in the trust after the grantor's death.

While alive, the grantor may serve as a trustee and control the assets although the assets are belong to the trust.

There are three different parties involved - Grantor, Trustee and the beneficiaries. Grantor is the individual or a couple who establishes the Trust. Trustee is the person named by the Grantor. In many cases the Grantors are the Trustees themselves. Beneficiaries are the heirs who are going to benefit from the Trust after the Grantor's death.

If both of your names are on the deed then anyone of you or both of you can create the Trust.

The Trust is useful to individuals subject to Estate taxes. You can maximize your Unified Credit to the fullest. It is even helpful to avoid conservator ship.

Setting a Trust becomes beneficial to complicated family situations. In case of remarriage, children from previous marriages can get the benefit of the Trust and ensure that all of them get their proper inheritance.

Hope this information will help you.

God bless you.

For MortgageFit,
Samantha
Posted on: 17th Jan, 2006 09:33 am
Hi Erica,

As long as you are mentally competent, you can change the Trust and take back the property any time you want.

You need not take any permission for that from anyone or show any reason. After your death the Trust becomes irrevocable and no changes are allowed then.

Regards,
Blue
Posted on: 17th Jan, 2006 09:57 am
The Estate Living Trust can't save any income taxes. Here, the Trustee pays you all the income and the expenses required by you.

If you become incapacitated, the necessary amounts of income and principal is paid by the Trustee for your benefit.

Thanks,
Douglas
Posted on: 17th Jan, 2006 10:03 am
The several benefits of Estate Living Trust are as follows -

  • It helps in property management as well as financial management of your property, if you are unable to manage the affairs.
  • Probate is not required incase all the property is in your living trust.
  • Since it operates without court supervision, so distribution of your property, after your death, is possible quickly.


Hope I could add some valuable related points.

James
Posted on: 17th Jan, 2006 10:13 am
In spite of the advantages, there are some disadvantages which I think should be mentioned.

Since the Trust involves a more complex document, it becomes often more costly to establish. it requires regular monitoring and any newly purchased asset has to be included.

It is always better to involve an attorney in the process and follow his advice.

Angel
Posted on: 17th Jan, 2006 10:24 am
So, does this mean that I will have to quit claim the 50% my dad gave me back to him and then he will start an Estate Planning? He would be able to make changes to the Estate Planning at any time correct? Are these changes legal? The property is mine 100%.
Posted on: 17th Jan, 2006 12:21 pm
Hi Erica,

Welcome to MortgageFit Forums.

Yes Estate Living Trust is legal and should be done an attorney already in this field.

If your father wants to create the Trust and make you the heir, he can be handed over the property. But this depends on you and your trust with your father.

If his name is already in the deed then he can go ahead with his plans. Since you are already own 100%, so you have to decide whether it is really required for you.

My advice will be to consult your attorney in this matter and check whether this will really benefit you.

God bless you.

For MortgageFit,
Samantha
Posted on: 17th Jan, 2006 12:31 pm
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