Revocable Living Trust

Trusts are often an important part of an estate plan. There are many different types of trusts and techniques available to fit your situation. Below is a brief overview of the most common types of trusts that we utilize with our clients. With so many specialized trusts available, we can determine what will fit your goals. Effective planning often requires the use of a trust. We can offer many different solutions and planning options to fit your goals.

This is a trust that you create during your lifetime. You CAN make changes to any or all provisions of this trust at any time. This type of trust, if funded properly, should allow your estate to pass to your heirs without going through the burdensome and time-consuming probate process. One great advantage of the Revocable Living Trust is that your day to day finances and actions remain almost completely the same as before you implemented the trust while still providing the ability to modify, revoke, or amend the trust.

The majority of our clients elect to serve as their own trustees during their lifetime. This allows you to maintain control of all your financial decisions without having to answer to another trustee. Once you are incapacitated or have died, then a successor trustee that you appointed will step in to administer the trust in accordance with your wishes. This avoids probate, avoids having to file your will with the court where your wishes would become available to the public, and avoids having your executor ask for the permission of the Court before taking most actions. A trust allows for private and very quick distribution of your assets to the individuals or organizations that you specify in your trust.

There are some important things that you can and cannot do with a Grantor Trust. For instance, there are some assets that should not be held by the Revocable Grantor Trust without very specific language. Life insurance policies, IRA’s, Qualified Retirement Plan Accounts, S-Corp Stock, Professional Association Stock, Partnership Interests, and more can be problematic if held in a Revocable Trust not properly drafted. Each asset has different reasons why it shouldn’t be held in this type of trust, so exercise caution before transferring these assets. If you have transferred IRA’s, Insurance Policies, or QRP assets to a revocable trust, you have probably and inadvertently removed some of the creditor protections of these assets. If you have transferred business ownership interests, you may have affected the tax structure of your business entity. If you have previously funded a trust with these types of assets, you should consult an estate planning attorney quickly to see if in fact these should be removed and how to implement a plan that maximizes the benefit to you and to your heirs. There are other assets that work perfectly well if held by a trust, and should in fact be in the trust. Real estate, brokerage accounts, bank accounts, personal property would all be considered proper assets for a trust to hold.

The importance of having the right language in your trust for your assets and your goals is significant.

We are highly experienced and well versed in creating Revocable Living Trusts. Our typical drafting and implementation process is usually 2-3 weeks. We offer a free initial consultation and if you decide that you want us to proceed to draft the documents, we will usually have the documents finished and ready to sign within 2-3 weeks of our first meeting. Contact us to set up an initial consultation.

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Larson and Brown has over 34 years of estate planning legal experience, but we do much more than simply practice law. We are personally invested in our community and work hard to meet the needs of individuals who seek our help. That’s why we build great relationships with our clients by providing valuable information, guidance, and support for current concerns, as well as long term planning.

We care. We listen. We counsel.

To set up a consultation and find out more about creating a legacy for your loved ones, call
(316) 729-0100 or use the follow the button below and send us an email. We look forward to working with you.

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