Trust

Revocable Family Living Trust

    The law treats a trust as a separate person or company.  A Revocable Family Living Trust may be created for tax reasons, estate planning, or liability purposes.  Before setting up a Revocable Family Living Trust tax experts and estate planning experts should be consulted.

     A Revocable Family Living Trust may not be helpful for purposes of becoming eligible for medicaid.  A Revocable Family Living Trust may be used to shelter assets from certain judgment creditors. A Revocable Family Living Trust gives the settlor control over his assets for disbursement to children and grandchildren over a period of time.  Assets can be distributed in parts, or in full to one or more beneficiaries equally or in different proportions and at different times according to the plan established when it is created.  A Revocable Family Living Trust can be used to provide for a minor or a disabled child or grandchild.

    A Revocable Family Living Trust can be revoked during the life of the settlor.  It can end at the death of the settlor or continue through the lives of the children or grandchildren.  Generally it must terminate twenty one years after the death of a life in being when the trust was created.

    A Revocable Family Living Trust can be created and executed upon the death of the settlor.

    It is necessary that property or assets be included in the trust otherwise the property never becomes part of the trust.  It may be transferred to the trust by title transfer.  A settlor must consult taxing authorities to determine if the homestead valuation is lost by transferring property to a Revocable Family Living Trust.