0
A living trust template is a generic trust instrument. These documents are sold for a variety of uses such as estate planning tools to avoid the expense of probating an estate, to remove property from the reach of creditors or to minimize taxes. Be warned that states have various requirements for creating a VALID trust document. A trust that is valid in California or Florida may not be valid in Massachusetts. To hold title to real property in Massachusetts a trust must conform to Massachusetts law. Therefore, generic trust documents downloaded from the internet are extremely unreliable. The legal problems that can result from these generic trusts can be extremely costly.
A common example is a document that allows the trustor to declare himself the trustee and the beneficiary during his life and then names a successor trustee who will distribute the property after the trustors death. These trusts have become very common and are invalid.
In the example provided above there was no trust created. When the same person is the trustor, trustee and the beneficiary, any property transferred to the "trust" remains in the estate of the "trustor". Upon the death of the trustor-trustee-beneficiary the estate must be probated. If the "trust" was used for tax purposes during that "trustor's" life there may be taxes and penalties owed.
Another problem frequently seen in generic trusts is the failure to provide all the necessary provisions for the trustee to deal with the property. There are examples where a trust was created and the property was transferred to the trust. However, the trust failed to grant the power to sell the property to the trustee. Therefore, once the property went into the trust there was no means by which it could come back out. In other cases the trustee has died and the trust fails to make provisions to appoint a successor trustee. In those cases, the interested parties must hire an attorney and petition the court to make the necessary modifications to the trust so the property can be transferred to the beneficiaries or sold.
When contemplating the transfer of property to a trust you should consult an attorney who is knowledgeable about trust law in your state.
Wiki User
∙ 12y ago
A living trust template is a pre-designed document that outlines the terms and conditions of a living trust. It typically includes sections for naming beneficiaries, designating a successor trustee, and outlining how assets should be managed and distributed. These templates can be customized to fit individual needs and are often used as a starting point for creating a legally binding living trust.
Add your answer:
Earn +20 pts
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.
Are the assets in a living trust protected from lawsuits?
Assets held in a living trust may offer some protection from lawsuits, but it depends on the specific circumstances and the laws in your jurisdiction. Generally, assets in a trust are protected from probate and may be more difficult for creditors to access, but they are not completely shielded from lawsuits or creditors. It's important to consult with a legal professional to understand how a living trust may affect your personal situation.
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.
Can you use a living trust as an asset?
Does the trust have assets in it?
Who is the grantor in a living trust?
The grantor in a living trust is the person who executes or creates the trust and then transfers their property to the trustee. After they transfer the property they no longer own it.
Who is grantor in a living trust?
The grantor in a living trust is the person who executes or creates the trust and then transfers their property to the trustee. After they transfer the property they no longer own it.
