Estate Planning: What Is a Revocable Trust? - ElderLawAnswers Funding a Revocable Living Trust The secret to making revocable trusts work is to fund them This means retitling assets, whether real estate, bank accounts, or investment accounts, in the name of the trust All too often, attorneys draw up estate planning documents, advise clients to fund their trusts, and then nothing happens
Can Creator of a Revocable Trust Make Changes? - ElderLawAnswers The creator of a revocable trust, often called the "grantor," "donor," or "trustor," can make whatever changes she wants She does not have to tell the beneficiaries that she is changing trustees, but she does need to inform the current trustee Otherwise, the trustee may continue acting in that role with no knowledge that she has been removed
Living Trust vs. Irrevocable Trust: Whats the Difference? Revocable Trust vs Irrevocable Trust: Differences in Structure Once you establish an irrevocable trust, you cannot cancel or revoke it The person creating the trust, sometimes called the “grantor,” transfers assets into the trust and permanently gives up all claims to them A trustee then carries out the instructions spelled out in the
Understanding the Common Types of Trusts - ElderLawAnswers Revocable trusts are generally used for the following purposes: Managing and protecting assets: Revocable trusts permit the named trustee to administer and invest the trust property for the benefit of one or more beneficiaries Avoiding probate: At the death of the trust grantor, the trust property passes to whoever is named in the trust It
Caution: Use of Revocable Trust May Void Homestead Protection However, placing the home in a revocable trust may void this homestead protection The use of revocable trusts, which often are employed as a way to avoid probate, has been on the rise But two bankruptcy courts have reached different conclusions on the question of whether a home in such a trust is entitled to the homestead exemption
You May Need a Revocable Trust With Your Power of Attorney Create a revocable trust Financial institutions seem to accept revocable trusts more readily than durable powers of attorney Revocable trusts give you the extra advantage of appointing a co-trustee to serve with you This way, if you become incapacitated, the co-trustee can step in and act A Trust Provides Financial Protection
How to Use a Trust in Medicaid Planning - ElderLawAnswers A revocable trust is one that may be changed or rescinded by the person who created it Medicaid considers the principal of such trusts (that is, the funds that make up the trust) to be assets that are countable in determining Medicaid eligibility Therefore, revocable trusts are of no use in Medicaid planning
Will Making Revocable Trust Irrevocable Affect Medicaid? - ElderLawAnswers Yes A revocable trust for both tax and Medicaid purposes is treated as if the property it holds is in the name of the grantor, which means the assets in the trust can put an applicant over the Medicaid asset limit If you make the trust irrevocable, Medicaid will consider that the same as transferring assets into a new irrevocable trust
9 (Potential) Problems with Your Trust - ElderLawAnswers Typically, you will be the trustee of your own revocable trust with your spouse as co-trustee (if you're married) Trusts should name one or more successors in the event the original trustee or trustees are unable to serve
Will Making My Trust Irrevocable Mean a Medicaid Penalty? - ElderLawAnswers No The creation and funding of an irrevocable trust, whether creating a brand-new trust or amending a revocable trust to make it irrevocable, within five years of applying for Medicaid will result in a Medicaid penalty period You could end up being ineligible for Medicaid benefits for up to five years