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Living Trusts-  
A Living Trust is the first order of defense against life's surprises.


What happens if I don't have a Will, Living Trust or Life Insurance?

The legal term for dying without a Will is "dying in testate". If you do not specify through a valid Will or Living Trust who will receive your property, state law controls and generally distributes your property to your spouse and/or your closest heirs. This may or may not be what you intended. Furthermore, if you fail to nominate a guardian for your minor children, the state could appoint someone you don't trust as a legal guardian of your minor children. Finally, by failing to appoint someone to carry out your wishes, the state can appoint anyone to be the administrator of your property, and the administrator may have to pay certain fees or post a bond at the expense of your estate, before he or she can begin to distribute your assets.

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What does a Will do?

A Will is the legal document that allows you to distribute your property to those you choose. A Will allows you to designate beneficiaries to receive specific items from your estate, and other beneficiaries to receive everything else. For example, if you want your house, your car, or your antique thimble collection to go to a certain person or organization, you designate that person or organization as the beneficiary.

Who's going to make sure that your antique thimble collection goes to the proper person? The executor of your Will. The executor's the person you designate to carry out your wishes.

A Will also gives parents of minor children the chance to nominate a guardian. The court makes the final decision when appointing a guardian for your children after your death, but the court will usually accept your nomination. A guardians legal responsibility is to provide for your child's physical welfare.


What does a Living Trust do?

A Will comes into play only after you die, but a living trust can actually start benefiting you while you are still alive. A living trust is a trust established during your lifetime and is revocable, which allows for you to make changes. You will transfer substantially all of your property into your living trust during your lifetime, and any omitted assets can be transferred into the trust at the time of death through the use of a simple Pour-over Will. You should always make a Pour-over Will at the time that you establish your trust.
 

What are the Differences between Wills and Living Trusts ?

Both Wills and Trusts are devices, which you can use to provide for the distribution of your estate upon your death. Deciding whether a Will or a Trust best fits your needs depends on your circumstances. A living Trust is a popular alternative to the traditional Will, but you should weigh the advantages and disadvantages of each before deciding on one form or the other.


What Happens At Probate Time ?

Under A Will: Subject to probate proceedings. Out -of-state property requires probate proceedings in that state, as well.

Provides court supervision for handling beneficiary challenges and creditor disputes. Becomes public record at the time of your death.

Under A Living Trust: Not subject to probate proceedings. Avoids the cost of a second-state probate proceeding where there is out-of-state property. No automatic court supervision to deal with disputes. Remains private.
 

Tax Savings

The same tax-saving-provisions available in a Will, are available in a Trust. 
                                                                                                                            

Management of your Assets

Under A Will: In addition to the Will, must use a Power of Attorney or Conservatorship to manage assets. Allows you as the grantor to manage the Trust assets as long as you are willing and able. Under A Living Trust: Makes provisions for a successor trustee to take over in your place.
 

Costs

Under A Will: Costs less to prepare a Will than a Trust. Cost to probate a Will can be substantial.

Under A Living Trust: Costs more to prepare, fund and manage a Trust than to prepare a Will. But avoids probate costs if all assets were held by the Trust.
 


Long Term Care Insurance Companies

Genworth Financial  John Hancock
  GE Capital        John Hancock


Related:

Needs l FAQ's l Long Term Care Terms l Medicare Terms l Wills and Trusts l Living Wills l Living Trusts l Illustration Examples l Long Term Care Products l Sample Policy


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