Revocable
Living Trusts
- Frequently Asked Questions (FAQ)
 What
are the advantages of a Living Trust?
In addition
to avoiding the costs and delays of probate administration, the
living trust is a private proceeding so that there are few, if any,
public records regarding the extent or nature of assets or the identity
of the beneficiaries. The living trust has the added benefit of
providing for the needs of the grantor during periods of disability.
Can
a Revocable Living Trust be Changed or Revoked?
Yes. The Grantor
typically reserves the right to change, amend or revoke the trust
agreement at any time during his or her lifetime, with the exception
of any period of mental incapacity.
How
will I use my property if it's tied up in Trust?
A revocable
living trust permits the Trustee (you) to transfer property in and
out of the trust at your discretion. Therefore, it is not tied up
in trust. The better practice however, is to use the property through
the authority of your position as "Trustee." When opening
a bank account, the account will typically be titled in the name
of the Trust, for example "The John Doe Revocable Living Trust,
Dated January 1, 19XX, John Doe, Trustee." All checks would
be signed by "John Doe, Trustee." Other property is typically
titled in a similar manner.
Does
the Revocable Living Trust avoid Probate?
Yes, insofar
as it pertains to property actually transferred into the trust.
Property not transferred into the trust is, obviously, not owned
by or administered under the trust.
Property held
in trust at the date of the Grantor's death is not subject to Probate,
but distributed under the terms of the Trust. This means that your
beneficiaries will not incur the expenses associated with a probate
proceeding as to any property owned by the Trust. This typically
means saving thousands of dollars and your beneficiaries will receive
their distribution much sooner than they would if the estate were
probated.
If
I set up a Living Trust, do I still need to set up a Will?
Yes. Although,
ideally, all your property would be transferred to your intended
beneficiaries by your Trust, it is always possible that there will
be some property that has not been placed in trust, for whatever
reason. Therefor, it is important that you execute a "pour
over" Will that names your revocable living trust as your principal
beneficiary to assure that your property is distributed according
to the terms of the trust.
If
I have a Living Trust, do I still need a Durable Power of Attorney?
Yes. The Durable
Power of Attorney allows your attorney-in-fact to handle your affairs
during periods of disability. It is quite likely that there may
be property that has not been transferred into trust, or new income
or property that may accrue you, personally, during a period of
disability. For this reason, it is advisable to have a Durable Power
of Attorney for management of property that is not within the trust.
For
additional information, please contact
our office at (314)725-1880.
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DISCLAIMER:
THE PRECEDING INFORMATION WAS OF A GENERAL NATURE AND NOT MEANT
TO CONSTITUTE LEGAL ADVICE OR TO BE USED IN, OR APPLIED TO, ANY
INDIVIDUAL SITUATION. THIS GENERAL INFORMATION IS APPLICABLE TO
THE STATE OF MISSOURI AND MAY NOT BE VALID UNDER THE LAWS OF OTHER
STATES. IF THE READER HAS SPECIFIC LEGAL QUESTIONS, HE OR SHE SHOULD
CONTACT AN ATTORNEY.
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