DO I NEED A LIVING TRUST?
A Living Trust is a revocable agreement
- Your assets are held in trust
- You are the trustee during your lifetime
- You choose your successor trustees
- You can change or cancel the trust at any time
Assets held in your Living Trust are not probated
- The expense, delay & publicity of probate are avoided
- Your assets are disbursed more cheaply, quickly & privately
- Assets must be transferred into trust during your lifetime to avoid probate
Why does the Living Trust avoid probate?
- The function of probate is to collect and distribute whatever belongs to you when you die
- But, whatever is in trust no longer belongs to you - it belongs to the trust
A Living Trust can better organize and plan your estate:
- To provide for financial management in case of disability
- To care for minor beneficiaries
About estate taxes:
- In 2007 and 2008, federal estate taxes apply only to gross estates over $2,000,000
- This amount will increase to $3,500,000 in 2009, and the federal estate tax will not apply at all (under current law) to estates of people dying in 2010
- Your MyCare Plan living trust does not include any estate tax planning provisions, so it is designed for people with gross estates under $2,000,000 ($3,500,000 in 2009)
A Living Trust offers advantages over jointly held property:
- A reduced risk of liability for debts of your beneficiaries
- While still offering efficient transfers of title at death
You will still need a will if you have a living trust
- To "pourover" remaining assets to the trust upon death
Five (5) reasons why you must have a living trust - If you want to:
- avoid the delay and expense of probate
- keep your estate distribution private (not a public record)
- hold assets for your beneficiaries until they reach a certain age
- have financial management of your assets during incapacity
- protect your assets from creditor claims during your life
ORDER A MyCare Plan™ WILL AND TRUST PACKAGE
Or call 248-347-6703 if you have questions.
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