Saves Taxes
When a couple holds property or stock in joint tenancy and the first spouse dies, the surviving spouse is required to pay a Capital Gains Tax upon sale. This tax is based upon one-half of the increase in value of the property since the time of its purchase.
With a LIVING TRUST, title is transferred into the Trust. This entirely eliminates the Federal Capital Gains Tax at death on all increases in value up to the date of death.
Completely Private
A Will provides no privacy with public Probate Court Proceedings.
A LIVING TRUST is a private document. The size and distribution of your estate remains confidential and not a matter of public record.
Prevents a Will Contest
In Probate Court, anyone can easily contest a WILL, even without a lawyer.
With a LIVING TRUST your wishes are carried out without interference and are extremely difficult to challenge.
Avoids a Conservatorship
If you ever become incapacitated, the Probate Court will appoint a Conservator to manage your property, and your Estate will be required to pay court fees and costs for the Conservatorship each year.
With a LIVING TRUST, your Trustee can manage your property if you are unable to handle your affairs, and there are NO COURT FEES or involvement.
You Control Your Assets
By making a gift of all of your property to your heirs, you may eliminate Probate. However, once the gift is made, you have lost ownership of your property, which you may later need for your support.
A LIVING TRUST allows you to retain control of your property, and upon your death YOU CONTROL WHEN AND HOW MUCH YOUR BENEFICIARY WILL RECEIVE.
Avoids Joint Tenancy Problems
Joint Tenancy is a method of avoiding Probate where, upon the death of one co-owner, the survivor becomes the full owner of the property. If you place your child on your property as a Joint Tenant with you....
As an owner, your child has the power to interfere with your decision to sell or refinance the property.
If your child should go through a divorce, their divorced spouse can claim an interest in the property.
If your child should owe taxes, the tax collector may take your property to satisfy their tax obligation.
If your child should be found liable in any lawsuit, your property may be sold to pay their judgment.
With a LIVING TRUST, Probate is entirely avoided and there is no exposure of your assets to the debts or liabilities of your children.
Saves Substantial Estate Taxes
Estate Taxes are paid to the Federal Government for the transfer of property upon death. Federal Estate Taxes are based on the size of the estate and imposed where the net value of the estate is larger than the current Federal Estate Tax Exemption. The Federal Estate Tax amounts to almost one-half of the estate after deducting the exemption. A LIVING TRUST effectively doubles the Estate Tax Exemption on the death of the second spouse, saving substantial Estate Taxes.
Avoids Complex Probate Proceedings
Probate is the court process designed to transfer title of assets to your heirs and clear your debts. Probate is required especially when there is a WILL. The Probate court procedure is complicated by laws requiring your executor to obtain special court approval to take any actions, including paying your bills and distributing your assets.
With a LIVING TRUST, the title to your property is transferred to the Trust so that your heirs can easily receive your assets and will not have to go through complex Probate Court proceedings. Probate is completely eliminated.
Preserves Benefits for Disabled Heirs
A disabled heir generally loses government assistance payments upon receiving an inheritance. A LIVING TRUST can authorize your successor trustee to make special distributions for a disabled heir while still preserving their Government Benefits and eliminating ALL probate fees and costs.
Probate fees are based on the entire value of the estate, without deducting debts or mortgages. They are substantial fees that apply to all other mortgaged property owned in other states. If a couple owns property in four states, there would be four Probates REQUIRED! With a LIVING TRUST, your family will not have to go through Probate, and can avoid paying expensive Probate fees and costs.
Allows Quick Distribution
Assets in Probate Court are frozen from six months to two years or more, even with a WILL.
A LIVING TRUST allows these same assets to be distributed within days to your loved ones, since a Living Trust avoids Probate Court and is administered by a pre-appointed Trustee.
Protects Against Catastrophic Medical Costs
If you should ever require care in a convalescent hospital or long-term nursing home, the medical expense could eventually wipe out your Estate, thereby denying you the opportunity to leave your property to your loved ones.
With a LIVING TRUST, if you become seriously ill your Trustees can make gifts of your property to your heirs, and sixty months thereafter can seek Government Benefits for your care so that the bulk of your Estate will go to your heirs.