what to ask attorney about living trust

• Make Sure You Know What’s In and What’s Out. One of the first things you should ask about is which assets are covered by the living trust. ...
• Know the Good and the Bad. If you’re new to estate planning, of course, you may wish to start with something even more basic—like why you might want a living ...
• Ask About Living Wills vs. Living Trusts. Along the same lines, it’s important to clarify the role played by each estate planning document. ...
• Consider Trustee Credentials. When setting up any kind of a trust—even a gift trust—it’s vital to select someone who can serve as the trustee.
Don’t Forget the Power of Attorney. One more thing you’ll want to ask about is the financial power of attorney. ...
Ask All the Right Questions About Your Estate Plan. Clear communication with your estate planning lawyer is crucial. ...

Full Answer

What questions should I ask myself before creating a living trust?

Ask Your Attorney for Help with Understanding Living Trusts Make Sure You Know What’s In and What’s Out. One of the first things you should ask about is which assets are covered by... Know the Good and the Bad. If you’re new to estate planning, of course, you may wish to start with something even ...

Do I need a lawyer to make a living trust?

A living trust may seem confusing, but thankfully some lawyers are there to answer your every question. Because it involves your assets in the event of your death, you need to ensure you know every detail for your trust. Here are eight questions you need to ask your trust lawyer before signing anything.

Is a living trust right for You?

Feb 05, 2019 · A Lincolnshire living trust attorney at Hedeker Law, Ltd. offers some guidance in the form of 10 questions to ask when choosing a Trustee for your living trust. What Is a Living Trust? A trust is a legal relationship wherein property …

How does a LegalZoom living trust work?

Jul 21, 2015 · A living trust is created with a trust document or instrument. You may be able to create this yourself, but it makes sense to work with an attorney to create your trust in some situations. Elements of a Living Trust Document. A living trust document must contain the following items to be valid: Your name as the grantor of the trust

What questions should I ask when setting up a trust?

Questions to ask your parentsWhat were your intentions in creating this trust? Ask why this trust was set up. ... How do you think this trust will impact me? ... Who else has access to the trust? ... What is your relationship with the trustee and/or trust administrator? ... How will I work with the trustee and/or trust administrator?

What are the disadvantages of a living trust?

Drawbacks of a Living TrustPaperwork. Setting up a living trust isn't difficult or expensive, but it requires some paperwork. ... Record Keeping. After a revocable living trust is created, little day-to-day record keeping is required. ... Transfer Taxes. ... Difficulty Refinancing Trust Property. ... No Cutoff of Creditors' Claims.

What should I look for in a living trust?

Every trust must have four elements:There must be someone who creates the trust, who is often called the "trustor" or the "grantor."There must be assets, usually called the trust "corpus."There must be someone who holds, manages and distributes the assets, who is called the "trustee."The trust must have a purpose.

What should you not put in a trust?

Assets That Can And Cannot Go Into Revocable TrustsReal estate. ... Financial accounts. ... Retirement accounts. ... Medical savings accounts. ... Life insurance. ... Questionable assets.Jan 26, 2020

Should bank accounts be included in a living trust?

If you have a living trust, one of your most important steps in making sure your plan works correctly when it is needed is to have all of your assets properly funded into your trust. ... With your day-to-day checking and savings accounts, I always recommend that you own those accounts in the name of your trust.

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

A revocable trust and living trust are separate terms that describe the same thing: a trust in which the terms can be changed at any time. An irrevocable trust describes a trust that cannot be modified after it is created without the beneficiaries' consent.

What does putting a house in trust mean?

Trust property refers to the assets placed into a trust, which are controlled by the trustee on behalf of the trustor's beneficiaries. ... Estate planning allows for trust property to pass directly to the designated beneficiaries upon the trustor's death without probate.

Who should manage my trust?

Depending on the type of trust you are creating, the trustee will be in charge of overseeing your assets and the assets of your loved ones. Most people choose either a friend or family member, a professional trustee such as a lawyer or an accountant, or a trust company or corporate trustee for this key role.May 31, 2019

At what point do you need a trust?

Here's a good rule of thumb: If you have a net worth of at least $100,000 and have a substantial amount of assets in real estate, or have very specific instructions on how and when you want your estate to be distributed among your heirs after you die, then a trust could be for you.

How much does it cost to put your house in trust?

How much does it cost to put a house in a trust? While filing the actual paperwork won't take much out of your pocket, attorney's fees account for the bulk of the cost associated with creating a trust. Expect to pay $1,000 for a simple trust, up to several thousand dollars.Oct 21, 2021

What is the benefit of putting your assets in a trust?

Why Put A House In A Trust? The main benefit of putting your house in a trust is that it bypasses probate when you pass away. All of your other assets, whether or not you have a will, will go through the probate process. Probate is the judicial process that your estate goes through when you die.Jul 23, 2021

Why would you put your assets in a trust?

Among the chief advantages of trusts, they let you: Put conditions on how and when your assets are distributed after you die; Reduce estate and gift taxes; Distribute assets to heirs efficiently without the cost, delay and publicity of probate court.

Why do you need 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. This is a highly beneficial tool for the trustee, as a living trust eliminates the need for probate court.

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.

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.

Can you put your assets in a living trust?

The majority of your assets can go into your living trust, however, there are certain things that will not be eligible. It’s important to discuss this with your attorney during the estate planning process so you can maximize the potential of your trust.

Why do people put their wills into a living trust?

Many people who opt for a living trust also create a will to ensure that all their bases are covered. While a living trust is great for efficiency, flexibility, and privacy; a will can direct any assets you forgot to put into your trust.

What are the drawbacks of a living trust?

Some of the main disadvantages of a living trust are that there are typically more upfront costs involved and it doesn’t cover any assets you forget to place in it.

1. Will the Trust Attorney Administer the Living Trust and Help the Family After a Your Death?

To administer the trust means to follow your instructions after your death. There are several phases to administering a living trust after death, the gathering phase is first, where the trustee will gather and organize the Decedent’s estate planning material, information, and documents.

2. How Many Years of Practice Do They Have in Estate Planning?

It’s very important to consider an attorney’s number of years in practice upon hiring. Evidently, the longer an attorney has worked in a specific field the more knowledge and experience they will have to help you. This is especially true with estate planning.

4. Is the Trust Attorney a Certified Specialist in Estate Planning and Living Trust?

An attorney who is also a certified specialist in trust and estate planning will know exactly how to help you with your estate plan. Attorneys are licensed by the state of California. Out of all the attorneys licensed, only a fraction practice Trusts & Estates.

5. Is There Fine Print?

Before you sign with a trust attorney, make sure you know about any hidden charges or costs. These charges include recording fees, additional fees, notarization fees and more. Even for current clients, some attorneys will charge hourly to answer questions or concerns after documents have been signed.

Know the Good and the Bad

If you’re new to estate planning, of course, you may wish to start with something even more basic—like why you might want a living trust in the first place. Ask your estate planning lawyer to elaborate both the positives and negatives of living trusts. And, ask why a living trust does or doesn’t make sense for your particular estate planning needs.

Ask About Living Wills vs. Living Trusts

Along the same lines, it’s important to clarify the role played by each estate planning document. For example, don’t hesitate to ask your estate planning lawyer about the distinction between living wills vs. living trusts.

Consider Trustee Credentials

When setting up any kind of a trust—even a gift trust—it’s vital to select someone who can serve as the trustee. What does the trustee do, though? What’s the job description? And what are the considerations you should make as you seek the best trustee? Your attorney can help guide you through the trustee selection process.

Ask All the Right Questions About Your Estate Plan

Clear communication with your estate planning lawyer is crucial. In fact, it’s important to note that this is your life, your estate, and your legacy on the line—so don’t be shy about asking anything you want to ask in order to understand things better.

Why do you need a living trust?

If you are concerned about family infighting over the distribution of assets after you pass, you can make provisions in your living trust to help avoid such conflicts. While a disgruntled heir can still cause problems even if a living trust exists, in most cases having one in place resolves common causes of family discord after a loved one dies.

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.

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 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.

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.

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.

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.

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.

Why does a trust fail?

One of the most common reasons for a trust to fail is the Settlor appointing the wrong person as Trustee. Instead of appointing a spouse, adult child, or close friend without thinking the appointment through, take the necessary time to really evaluate a potential candidate.

What is a trust in a legal relationship?

A trust is a legal relationship wherein property is held by one party for the benefit of another. A trust is created by a Settlor, also referred to as a Grantor, Trustor, or Maker, who transfers property to a Trustee appointed by the Settlor. The Trustee holds that property for the trust’s beneficiaries.

Can you include a living trust in your estate?

Like many people, you may find yourself including a living trust in your estate plan. If so, you will need to make a number of decisions during the creation of that trust. Among the most important of those decisions will be deciding who to appoint as the Trustee of your trust. A Lincolnshire living trust attorney at Hedeker Law, Ltd. offers some guidance in the form of 10 questions to ask when choosing a Trustee for your living trust.

What is the role of a trustee in a trust?

In broad terms, the Trustee of any trust is responsible for protecting and managing the assets held by the trust and administering the trust using the terms created by the Settlor in the trust agreement. Some of the specific duties and responsibilities a Trustee has include:

What are the duties of a trustee?

Some of the specific duties and responsibilities a Trustee has include: Abiding by the trust terms unless they are impossible, illegal, or unconscionable. Investing trust funds using the “Prudent Investor Standard”. Monitoring trust investments. Communicating with trust beneficiaries.

What is a testamentary trust?

Testamentary trusts are typically activated by a provision in the Settlor’s Last Will and Testament and , therefore, do not become active during the lifetime of the Settlor.

Who is Dean Hedeker?

Dean Hedeker is a leading Chicago-area authority on estate and tax planning, business law and investments. A long-time resident of north suburban Lincolnshire, Dean has more than 35-years experience helping business owners and families grow, protect and pass on their hard-earned money through tax planning, estate planning and investment management services.

How to write a trust document?

In many situations, it's possible to prepare your own trust document. To write your own trust document, be sure to do the following: 1 Check your state laws for trust requirements. Each state has its own requirements regarding what the trust must include, how it should be signed and witnessed, and whether an attorney is required for the transfer of certain assets into the trust. 2 Type the document. A handwritten trust document may be valid if it's properly signed and executed, but a typed document will be clear and easy to read and is always best. 3 Keep it simple. The more basic your trust, the better. Don't include anything beyond the basic information required by the state. 4 Transfer ownership. Once you complete the document, you must transfer ownership of your assets to the trust for it to take effect. If you skip this step, the trust has no effect at all.

What is a living trust?

A living trust is a legal entity that owns property you transfer into it during your lifetime. After your death, the trust distributes the assets to your beneficiaries. A living trust is created with a trust document or instrument. You may be able to create this yourself, but it makes sense to work with an attorney to create your trust in some ...

Is life insurance subject to estate tax?

Life insurance is subject to estate tax. If you have large amounts of life insurance, there's a special trust that can be set up to keep the funds from being hit by estate tax. An attorney can create this special trust for you. You need help transferring assets.

Can you transfer assets into a trust?

You need help transferring assets. If you aren't sure how to legally transfer your assets into the trust, a will and trust attorney can help you do it correctly so that your trust can go into effect. A living trust is an excellent way to manage your assets during your life and ensure they are distributed to your beneficiaries after your death ...

How much is the federal estate tax exemption?

The federal estate tax exemption is currently set at $11.18 million. If your estate is larger than that amount, you'll owe estate taxes. Many states have estate taxes as well, so be sure to check your own state's laws so you know if you'll owe the state.

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 ...

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.