Should I Have A Trust?

I have heard the term revocable trust, what does this mean? This type of trust can be changed by you at any time in your lifetime. The revocable trust is where you would keep your home, stocks, bonds, and most assets.

The revocable trust is the most popular and will not be subjected to probate when you die. A revocable trust also allows your estate to be taken care of if you become incapacitated.

What is a irrevocable trust? This is a trust which is established during your lifetime where your assets are placed and the trust cannot be changed.

Is a revocable trust better than having a will? Yes, in most instances it is. One of the main advantages is that your designated beneficiaries do not have to be subjected to your estate going into probate.

Do I still need to have a will even if I establish a revocable trust? Yes. Your will covers whatever assets you have not listed in your trust. These other assets would essentially pour over into your will.

What does trustor mean? This would be a person who creates the trust and owns the property and other assets placed in the trust. You would be the trustor of your own trust which you have established.

What is a person known as a trustee? The trustee is the person who controls the assets in the trust. This would include you before you die or become incapacitated.

What is a successor trustee? This would be a person or organization who takes over as trustee when the trustor has died or becomes incapacitated and is no longer able to handle the trust.

What is the A-B Trust? This trust is made by both spouses before death occurs. If one spouse dies, the trust is split into shares A and B. One share is revocable and the other share is a irrevocable trust. This type of trust is usually considered when the assets exceed the non taxable exemptions allowed.

Is Estate Planning A Good Idea?

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