what questions do i ask attorney about setting up a trust

Do you need a trust attorney to make a trust?

May 02, 2022 · A living trust is a document that allows you to place assets into a trust during your lifetime. You continue to use the assets, but they are owned in the name of the trust. You name a trustee who is responsible for managing and protecting the assets in the trust. After your death, the assets in the trust are distributed to the people you choose ...

What are good questions to ask an attorney?

Most assets can be placed in your trust with the exclusion of things like life insurance and certain retirement accounts. Things that can go into a trust include real estate, stocks, bonds, patents, copyrights, works of art, precious metals, collections, and much more. If you have a specific question, ask your attorney if it can go into a trust.

Do I need a trust attorney?

Ask your estate planning attorney for further information. 3) Do I need a trustee? Who should serve as my trustee? Depending on what kind of trust you set up, you may need to find a third party to manage the funds and perform key fiduciary duties on behalf of your beneficiaries. A will and trust attorney can advise you on whether you need to find a trustee, and who that individual …

What should I ask before hiring an attorney?

Mar 22, 2019 · A trust is a legal agreement that names someone to hold property for the benefit of others. The trustee is the person or company that manages trust property, and “beneficiaries” are the people who benefit from the trust. A living trust —the most common type of trust—is a trust created while the property owner is alive, and it's ...

What do I need to know before setting up a trust?

What should you not put in a trust?

What two things are usually required for a trust to exist?

What to bring to set up a trust?

Should I put my bank accounts in my trust?

At what net worth do you need a trust?

What are the 3 types of trust?

What are the 4 types of trust?

Why would a person want to set up a trust?

Does a family trust need a bank account?

How long does it take to set up a trust?

How do I set up an inheritance for a trust?

What is a living trust?

Creating a living trust is an essential part of the estate planning process. It allows you to put your assets into a trust during your lifetime, making for the easy and efficient transfer of assets after you’ve passed.

What is the difference between a will and a living trust?

What is the difference between a living trust and a will? A living trust is active as soon as you put it into effect, whereas a will is only active after your death. There are advantages of both, so it’s something you should discuss with your attorney to identify which one is right for you. 5.

What are the benefits of a living trust?

There are many benefits to creating a living trust, like avoiding probate court and having more control over the distribution of your assets. Before you move forward with creating a living trust, you will want to discuss all of the benefits with your attorney.

Who is the most knowledgeable resource on changes to legal statutes?

This is a big one. An attorney whose primary focus is estate planning will be the most knowledgeable resource on changes to legal statutes and will be the most equipped to help you create the most beneficial living trust.

What is a trust?

A trust is a legal relationship whereby one party, known as the trustee, holds assets for the benefit of one or more other parties, known as the beneficiaries. The most common form of trust is a discretionary trust, also known as a family trust. Here, the trustee is given ...

What is a trust in a family?

A trust is a legal relationship whereby one party, known as the trustee , holds assets for the benefit of one or more other parties, known as the beneficiaries. The most common form of trust is a discretionary trust, also known as a family trust. Here, the trustee is given the power/discretion to decide which of the beneficiaries are to benefit from the operation of the trust.

What is a unit trust?

Other types of trust structures include a unit trust and a hybrid trust. For a unit trust, the property held in trust is divided into fixed and quantifiable parts, called units.

What are the benefits of a discretionary trust?

For a discretionary trust, benefits can include: Asset protection; Tax planning; Carrying forward of losses; Capital gains tax discounts; and. Privacy. For a unit trust, benefits can include: Fewer regulations than a company; Easy to introduce new equity partners;

What is a discretionary trust deed?

For discretionary trusts, the trust deed generally provides that the trustee has the power at its absolute discretion to distribute capital and income to beneficiaries (thus allowing you to structure tax efficiently). However, if the trust involves (or may in the future involve) non-family members, such as business partners or external investors, ...

Is a trust a corporate trustee?

We typically recommend a trust has a corporate trustee. Despite slightly higher start-up costs, it is advantageous for the trustee to be a corporate trustee rather than an individual for liability reasons. The main advantages of having a corporate trustee are: Limited liability;

Can you amend a trust deed?

Generally a trust deed includes a very broad definition of beneficiary so that it should not be necessary to amend it in the future. However, if you wish to include additional beneficiaries to the trust after it has been set up, the trust deed will need to be amended by the terms of the trust deed.

Can a trust be challenged?

Yes, a trust can be challenged just like a will. If for any reason the trust maker was mentally incompetent, forced, unduly influenced, or deceived when setting up the trust, then the contest can be successful.

Can a trust override a will?

There are certain situations when a trust can override a will. This is usually in the case of an irrevocable living trust. If you give your house to the irrevocable trust, you give up your ownership of the home, meaning you cannot give it to someone in your will.

What is the difference between a living trust and a power of attorney?

Living trusts control all of your assets if you become incapacitated, but many attorneys still suggest that you draw up a power of attorney to make financial and medical decisions on your behalf. The power of attorney protects you as an individual whereas a living trust controls where your assets go when you pass.

What is an AB trust?

There are different types of trusts including an AB trust, revocable, and irrevocable trust. An AB trust is created by a married couple with the objective of minimizing estate taxes due to double-taxation.

Who is responsible for creating a living trust?

There are three stakeholders when you create a living trust: you ( the creator) and the trustee, the successor, and the beneficiaries. The trustee is legally bound to ensure all assets are managed and distributed in accordance with creator’s terms.

Can a living trust be contested?

A living trust can be contested, but again, it provides a level of privacy other estate documents cannot . If privacy is a major concern for you, it’s definitely a good idea to consult an attorney about creating a living trust.

What is a living trust?

A living trust— also called a revocable living trust— is an invaluable tool for estate planning, not least because it offers a private, efficient, no-headache way to transfer property after your pass on without the involvement of a probate court.

What is probate trust?

Probate means a list of your assets will be easily accessed by the general public. If you want to keep the contents of your estate between you and your beneficiaries, a living trust is right for you.

What is a revocable living trust?

A revocable living trust allows you to manage your property and change or dissolve the trust at any time for any reason at your full discretion. As the trustee, you have total control over your assets which means you can exchange, sell or invest them at any time.

Can you control your property in a living trust?

Real estate that is transferred to the trust will be retitled so that it becomes property of the living trust. This does not mean you cannot control your property, just that they belong to the living trust which is a wholly separate entity according to estate law.

What happens when an estate goes into conservatorship?

Many people are concerned about their estate going to conservatorship in the event they become incapable of managing their own affairs. With a living trust, assets are managed by a co-trustee or successor trustee named in the trust agreement if the creator becomes incapacitated.

Can a parent set up a trust for a child?

A parent could set up a trust to take care of the bills of an adult child with special needs without burdening their child with a lump payment. Similarly, parents of young children or young adults may want to provide payments monthly or yearly until the children become mature enough to handle their own money.

Who manages a trust property?

The trustee is the person or company that manages trust property and “beneficiaries” are the people who benefit from the trust. A living trust is a trust created while the property owner is alive and it is revocable for the lifetime of the trust maker.

What are the advantages of a trust?

There are some other advantages as well. They include: 1 A trust has the ability to cover things that a will can't cover. Examples include retirement accounts, jointly owned property and life insurance policies. 2 A will becomes public after the property owner dies. However, a trust stays private. Only the beneficiaries and the trustee are informed of the trust. 3 A trust can be more flexible than a will. This helps those who have complicated relationships and need a complicated estate plan. For example, a husband in a second marriage might want his current wife to be able to live in their house before his interest passes to his children from his first marriage. 4 A trust doesn't have to transfer all the property at once, instead in can transfer property over time. A parent could set up a trust to take care of the bills of an adult child with special needs without burdening their child with a lump payment. Similarly, parents of young children or young adults may want to provide payments monthly or yearly until the children become mature enough to handle their own money. 5 Some trusts can be designed to reduce estate taxes. However, most estate taxes affect only the very rich.

What is a living trust?

A living trust is a trust created while the property owner is alive and it is revocable for the lifetime of the trust maker. In contrast, a “testamentary trust” is one that takes effect when the trust maker dies. Some people use a will in addition to a trust to distribute their property.

Is a trust private or public?

However, a trust stays private. Only the beneficiaries and the trustee are informed of the trust. A trust can be more flexible than a will. This helps those who have complicated relationships and need a complicated estate plan.

Can you use a trust to avoid probate?

You may find that using a trust to avoid probate is well worth the cost of making a trust.

How does a living trust work?

After you make a living trust, you transfer property into the trust and you become the trust’s trustee.

Why do you need an irrevocable trust?

The two most common reasons for creating an irrevocable trust are 1) to save taxes; and, 2) to preserve assets from the reach of creditors, including long-term care costs.

Is a transfer of an IRA taxable?

The transfer of an IRA out of the name of the IRA owner is a taxable event. For example, if you have a $500,000 IRA and you move it into the name of your irrevocable trust you will be deemed to have $500,000 of taxable income. This will mean an income tax bill in the neighborhood of $150,000 or so – not a good result.

Can a lawyer draw up a will?

Although any lawyer can draw up a simple will for straightforward situations, such as naming the beneficiary of one's 401 (k), seasoned trust-and-estate lawyers can help navigate more complicated situations involving several trusts and multiple heirs. 1:21.

How to build an estate plan?

When building an estate plan, you may have a variety of concerns, including the following: 1 Maintaining an orderly administration of assets while you are living 2 Managing estate assets flexibly while you are living 3 Reviewing estates involving tenants in common or community property 4 Considering assets in multiple states 5 Examining small business assets 6 Naming your children’s legal guardian 7 Ensuring that your heirs and loved ones receive your assets 8 Helping to reduce or avoid conflicts and confusion 9 Minimizing legal expenses and taxes 10 Assessing wealth preservation

Why is it important to have an estate plan?

It's important to have a solid estate plan in place to ensure that your loved ones receive your assets without a hassle or undue delay after your death. There are many questions you should ask prospective estate-planning attorneys before hiring one to craft your estate plan. Above all, make sure you hire an attorney who demonstrates ...

How to set up a trust?

How to Create a Trust: The Basics 1 Seriously consider why you want to set up a trust. Most people underestimate how many assets they have and the benefit of passing them down to others. 2 Outline your goals when setting up a trust. Based on the financial supplement you want to provide your family in the future, you can set up your trust to reflect those goals. 3 Determine the structure of the trust. Determine the structure of the trust, how you wish to pass on certain assets, any restrictions and special rules you wish to apply to specific beneficiaries. 4 Choose a service and a successor trustee. Take a look at your choices for using a service or setting up your trust through a DIY method. We explore your options below.

Do you have to transfer the title of a trust to yourself?

Transferring the title of the property to yourself as a trustee is an important step that often is not executed. When you officially make your trust effective, you must hold title to trust property in your name as trustee.

What is a revocable trust?

Specifically, a revocable trust, also called a revocable living trust, is a document that can be modified by the person who creates it at any time while he or she is still alive. In order to make sure your trust is exactly what you want, it’s important to choose the right service for the right reasons.

What does a successor trustee do?

The successor trustee takes care to invest the trust funds and heeds the instructions you’ve included in the trust. Can avoid estate taxes: Both a living trust and will, if properly drafted, can be used to reduce or eliminate estate taxes under certain circumstances, and especially for married couples.

What is a spendthrift trust?

In other words, a spendthrift trust protects trust property from an irresponsible beneficiary and his or her creditors. It’s a type of property control trust that limits the beneficiary’s access to trust principal.

What is a special needs trust?

Special needs trusts are usually specialized spendthrift trusts created for a beneficiary who suffers from a disability. It may include instructions about the beneficiary’s public benefits, like Supplemental Security Income or Medicaid.

Can a married couple pass on estate tax?

A married couple can take full advantage of the federal estate tax exemption amount, so that they can pass up to twice that amount to their heirs on the second death.