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Trust law is one of the most complex bodies of law. The provisions to draft a valid trust vary from state to state. Errors made by non-professionals, even some attorneys, can be deadly and very expensive to correct IF they can be corrected.
You need to consult an attorney, with a good reputation, who can review your situation, understand your needs and explain your options. There are tax consequences that must be considered when making transfers to a trust. If the trust fails, the property will remain in the trustor's estate and the estate will need to be probated, trust property will not pass as desired and various taxes may be owed by the estate on the trust property. If you are contemplating such a complicated method of estate planning you need to consult a professional.
What else can I help you with?
Does a trust override a will?
A person's will is intended to direct the distribution of their property after their death. Sometimes a person's assets change during life. If a person transferred property to a trust during his life that property would not become part of his estate unless some provision in the trust directed that the property should pass to the estate. Therefore a trust would "override a will" if the property mentioned in the will had already been transferred to a trust during the life of the testator.
An estate that creates only the right of use and possession is known as a?
Life estate.
What if a life estate tenant remarries?
Marriage doesn't affect a life estate unless that was made a provision in the original grant of the life estate.Marriage doesn't affect a life estate unless that was made a provision in the original grant of the life estate.Marriage doesn't affect a life estate unless that was made a provision in the original grant of the life estate.Marriage doesn't affect a life estate unless that was made a provision in the original grant of the life estate.
How is the length of a life estate measured?
Generally, the life estate is for the duration of the life tenant's natural life. Other arrangements can be made if specifically recited in the grant or reservation such as a life estate until the life tenant is transferred to a long term care facility. An attorney should be consulted who can review the situation and explain the consequences of a life estate under state laws and tax laws.
In new york state when does life estate expire?
In New York State, a life estate expires upon the death of the life tenant. The property will then typically revert back to the remainderman or the owner of the future interest as specified in the life estate arrangement.
Can someone with life estate keep the one out that the house was left to?
No....If the home was in a irrevocable or trust life estate and that person died or in the case of the irrevocable trust there still alive and your the benaficairy the trustee can keep you out, but eventually depending on what the terms of the estate are turn the trust or estate over to you. Seek the advice of a probate attorney.
Can a trustee in an irrevocable life insurance trust borrow money from a life insurance?
No to avoid estate tax penalty
What is the benefit of placing term life insurance in a irrevocable trust?
The grantors of an irrevocable trust can take out life insurance on themselves and put it (term or whole life insurance) in the trust in order to pay the estate taxes on their estate assets when they die. This allows the grantor (giver of assets) to leave his estate assets to his children or someone else (beneficiaries) without them having to pay estate tax, or death tax as some call it.
What is listed in a decedent's estate when he already had an irrevocable trust?
Any property owned by the decedent in his individual capacity would be included in his estate. Any property that was transferred to a trust during life would not be included in the estate.
Which policies is used in estate planning to fund irrevocable trusts?
Some commonly used policies in estate planning to fund irrevocable trusts include life insurance policies, retirement accounts, and gifting strategies. These assets can be transferred into the irrevocable trust to provide financial security for beneficiaries and potentially reduce estate taxes.
Does an irrevocable trust with a life estate provision need to file a trust return if there is no income or other activity that the trust is involved with?
It is always a good idea to file a return, even if there is no activity. It shows that the trust is still being maintained and that there is no unreported activity going on.
What does life insurance trust do?
A life insurance trust is a form of trust which is both the owner and the beneficiary of one or more life insurance policies. It an irrevocable and non-amendable trust.
What is an irrevocable life insurance trust?
A life insurance trust is an irrevocable, non-amendable trust which is both the owner and beneficiary of one or more life insurance policies. Upon the death of the insured, the trustee invests the insurance proceeds and administers the trust for one or more beneficiaries. (Moved from discussion comments below)
Is an irrevocable trust a living trust?
Yes. There are two types of trusts, living (intervivos) and testamentary. The living trust is created by a living person(called the settlor or trustor). The testamentary trust is created by the will of a deceased person. Living trusts are designated as either revocable or irrevocable depending on the authority of the settlor. If the settlor has the power to cancel or revoke the trust, it is a revocable trust. If the settlor has no power to revoke it then it is an irrevocable trust. Since the revocable/irrevocable distinction is determined by what the settlor can do while he or she is alive, the trust had to have been made during the settlor's lifetime. Hence, an irrevocable trust is a living trust. On the other hand a trust that is set forth in a person's will is revocable during the life of the testator simply by a modification of the will through a codicil. Once the testator has died that trust becomes irrevocable.
Can a irrevocable trust become revocable if the only trust document is a will?
Trust law is one of the most complex areas of law. It depends on the instrument that creates the trust. You need to discuss this question with an attorney who specializes in trust law. Generally a trust set forth in a will is revocable by the testator during her life and irrevocable after her death.
What is the valuation of a life insurance policy for gift tax purposes?
For gift tax purposes, advisors regularly recommend that an insured who owns a policy in his own name transfer the policy to a new irrevocable life insurance trust (ILIT) to remove the policy from the insured's gross estate.
Does a living trust supercede an executed will in California?
Yes. If the property was transferred to a trust during the life of the testator then it was not in her estate when she died. It cannot pass by will.Yes. If the property was transferred to a trust during the life of the testator then it was not in her estate when she died. It cannot pass by will.Yes. If the property was transferred to a trust during the life of the testator then it was not in her estate when she died. It cannot pass by will.Yes. If the property was transferred to a trust during the life of the testator then it was not in her estate when she died. It cannot pass by will.
