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What document controls the distribution of an estate the Will or Living Trust Are the beneficiaries of a Will entitled to a full or half share of an estate with an AB Trust?
In: http://wiki.answers.com/Q/FAQ/2152-83 [Edit categories]
Living Trust Revocation?
Get StartedThe Living Trust Revocation is a document used to revoke a living trust or joint living trust. The Revocation can be used to either dismantle the entire plan of using a revocable living trust or to revoke the "old" living trust in preparation for preparing and signing a "new" living trust. However, if a new living trust will be created, and if it will have the same number of grantors as the revoked living trust, consider amending and restating the existing living trust instead of revoking it. If the living trust is merely restated and not revoked/replaced, the assets already transferred to the living trust will remain in the living trust, avoiding the need to transfer each of them. (See this program's Living Trust or Joint Living Trust documents and select the option to "Amend" the Trust.)
What is the definition of a living trust?
A living trust is simply a trust created by a living person. It is also known as an "inter vivos trust". That's Latin meaning a trust between living persons. Conversely, a trust created by someone in a will is called a testamentary trust.
What is the living trust all about?
A living trust is very similar to a living will. The living trust is created by the individual and outlines the wishes of that individual in regards to their assets.
What is a definition of a trust?
A living trust is simply a trust created by a living person. It is also known as an "inter vivos trust". That's Latin meaning a trust between living persons. Conversely, a trust created by someone in a will is called a testamentary trust.
Do I need a living trust?
If you are already writing a living will so you don't have to worry about your estate in the future it is a good idea to write a living trust as well. For more information about living trust http://www.legalzoom.com/living-trusts/living-trusts-overview.html and scroll down to where it talks about living trust.
What is the living michigan trust?
A living trust is similar to a living will. This is a common way of protecting assest from creditors.
As the surviving spouse of a AB living trust and now the trustee of the remaining family B irrevocable trust am I entitled to a annual fiduciary fee for managing this trust and if so how much?
Yes. The fee depends on local law and custom. For example, in Illinois a trustee can charge a reasonable fee. Some states have schedules.
Are the assets in a living trust protected from lawsuits?
Depends on what type of living trust it is. The assets in aÊrevocable living trustÊareÊnotÊprotected from lawsuits, but the ones in an irrevocable living trust are. The only drawback with an irrevocable living trust is that the creator or owner will not be able to add or remove any assets in the trust during the entire validity period.
Is a living trust taxable?
Income of a living trust is taxable to the trustees, if that's what you mean.
Does a new living trust superseed an old living trust?
Not necessarily. Sometimes people have more than one living trust. It depends on what the new trust says and how your assets are titled. Consult an attorney.
AB Trust Information?
Married couples are able to increase the use of his/her federal exemptions from the estate tax by the use of an AB Trust as a part of their estate plan. This system organized under the couples’ Revocable Living Trusts or Last Will and Testaments. The “A Trust” is usually referred to as the Marital Deduction, QTIP, or Marital Trusts. The “B Trust” is usually referred to as the “Family Trust”, “Credit Shelter Trust”, or “Bypass Trust”. Ways the AB Trust Maximizes Both Spouses Tax Exemptions: 1.The couple has the correct AB Trust Language included in their Revocable Living Trust or the Last Will and testament. •Should be done with a qualified estate-planning attorney. 2.The couples assets are divide so each spouse has just about the same value of assets in their Revocable Living Trust or in their individual name. •This is an essential step and need to be done so that the AB Trust system can work. Often, couples leave his/her assets in joint account, which completely cancels the use of the AB Trust system because the joint assets will pass to the surviving spouse outright, instead of by way of the deceased spouse’s Living Trust (Revocable), or Last Will. 3.The first $ 3,500,000 of the surviving spouse’s assets will be funded into the B Trust, if the first spouse died in 2009. •This successfully utilizes the first spouses $ 3,500,000 federal exemption that comes from taxes that were available for deaths happening in 2009. The B Trust can be used for the benefit the descendants, the surviving spouse or other beneficiaries and can be reasonably flexible. 4.The excess is funded into the A trust if the spouse who is deceased assets exceed $ 3, 500,000. •This will postpone the payment of estate taxes on amounts of the deceased spouse exemption of $ 3, 500,000, pending the surviving spouse’s death. The A Trust is less flexible, because of this estate tax deferment and can only be utilized for the advantage of the surviving spouse. The surviving spouse is also required to accept all of the incomes from the A trust. 5.Later, as a result of the surviving spouse dying, the surviving spouse will keep their own estate tax exemption, if a federal estate tax is in effect. •If the exemption sum is $ 3,500,000 at the time the surviving spouse dies, then the first $3,500,000 that comes from the surviving spouse’s detached assets will go to the final beneficiaries, tax-free. Anything above $ 3,500,000 will experience tax.
