Revocable Living Trust

For many people, the basis of proper estate planning is a revocable living trust that contains your special instructions for your own care and that of your loved ones. It allows you to give what you have to whom you want, the way you want and when you want, while savings tax dollars and probate costs. It is the very essence of what constitutes Proper Estate Planning. These instructions are what distinguish our living trust documents from traditional wills and bare-bones trusts. In addition to a revocable living trust, a proper estate plan also contains additional documents that provide a comprehensive estate plan.

If your trust is fully funded, your estate will avoid the probate process. Assets will be distributed according to your instructions without the delay, publicity and expense of probate. Estates of $250,000 or more can benefit from the use of a living trust.

If you become disabled and are unable to manage your affairs, your instructions, along with a Durable Power of Attorney for Property and a Durable Power of Attorney for Health Care and Living Will will avoid the necessity for a guardianship and/or conservatorship. Your designated disability trustee(s) will follow your instructions and will allocate your money pursuant to your wishes.

With proper estate tax planning, a married couple can currently protect up to $1,350,000 from federal estate taxes. When the phase-in is complete in 2006, a married couple can protect $2,000,000 from federal estate taxes. A single individual, under current law, can pass $675,000 free of federal estate tax with an increase to $1,000,000 in 2006 when the phase-in is complete. If your estate is above this amount, there are other estate planning techniques that may be appropriate for you.

With proper estate planning you can provide for your spouse, children and grandchildren. Your specific situation may call for providing for children from a previous marriage or for a special needs child. Assets can be made available to your beneficiaries at various ages. Insurance proceeds can be made payable to your trust so your instructions will govern how those proceeds will be used to benefit your family.

1. Provide instructions for your care and that of your loved ones in the event of your disability.
2. Have an estate plan that will be effective if you move to or own property in another state.
3. Avoid probate and its associated legal costs. However, state inheritance tax proceedings cannot be avoided if you have property subject to state inheritance tax.
4. Keep your affairs private and confidential.
5. Control all your property including retirement accounts and life insurance.
6. Leave explicit instructions for the care of your loved ones.
7. Create protective trusts for young children, disabled children, adult children and grandchildren.
8. Provide federal estate tax planning.
9. Provide for flexibility and contingency planning for future needs.