Hi Mark Kohler here with another tax and legal tip
I want to talk about for triggering events that might indicate you need to get a
Trust a revocable living trust a family trust as part of your state plan rather than just relying on a basic will number one
children under the age of eighteen or
Children that act like they're under the age of eighteen now it could also be children with special needs
And and you need to leave them your estate in a constructive manner with special rules now with all these four reasons
I'm going to assume that you do have some sort of a state may be its life
Insurance or retirement account a lot of equity in your home or some investment real estate
but you don't want to just flop this money into your kids lab and create a
Problem or maybe it just ruins their life more than helps them
This is a good reason to have a trust because the trust can
Put all sorts of rules and provisions in there
They get a chunk of money at age twenty-five another chunk at age thirty another chunk at age 35
Maybe money to buy a home or start a business or attends college
But anyway you can put all this into a trust, and if you have a will, it's much more difficult
It's clunky it makes a much more elaborate and complex will where a trust can do it much more effectively so
Number one trigger an event you have kids and you want to leave really specific rules. I think of Trust is a must
number two you own real estate
Now when you own real estate, and you pass away you can trigger?
What's called probate?
Probate is the court action where a judge gets involved and has to find out what your will really said is it really your will
Or if you die without a will it triggers what's called intestate probate and that can be a very costly
Experience and time-consuming for your heirs and the family so if you have one real estate even your primary residence
You want to have a trust on your real estate owned your home or maybe even own your LLC's to own your rental properties
so that if something happens to you your trustee can step in and
Handle all of your real estate without having to go to court now some people say well
I'll just have my spouse on the title with me
And if I die my spouse will get it or I'll put my kids on title and then they'll get it well
Putting people on title to your real estate
Can be very scary if they have their own legal problems and what happens if you and your spouse both pass away
What's gonna happen to your real estate probate so if you own real estate? Do yourself do your family a favor?
With all out work you put into it to prevent more lawyers getting it the money or the government I?
Get a trust and avoid probate number three
Medical concerns or needs for yourself and what I mean by this is you might be getting a little older in age
Or you might be having some medical situations
Or health concerns and having to trust and all your assets placed in that trust
Can make it easy for your loved ones to manage that trust for you while you're still alive, but maybe unable to manage your affairs
It usually includes a durable power of attorney a springing durable power of attorney
They give someone authority a backup trustee to run your affairs if you have a medical situation
Where you're not able to manage your financial affairs
So that's a good reason for a trust and a trustee that you trust to run your affairs
And and that's another important reason to consider a trust when you might anticipate something like that happening number four you're wealthy
That could trigger the need for a trust, and I'm talking about you being worth more than five million dollars
That could be
Equity and real estate equity in your home
Life insurance policies or in retirement accounts all combined what happens when you pass away is the IRS takes a picture
How much are you worth on paper - your debts? Well if that amount is over five to six million dollars?
You've got to have a trust to avoid estate tax now if Donald Trump and Congress get together and repeal a state tax great
but until then
We want to do some more advanced planning now if you're married this involved. What is called a a B trust a
/b trust and they've been around for years and years
And they allow you to maximize your estate credit of this five to six million dollars times two
But if you're a single or you're worth more than ten to eleven million dollars are married
You've got to think of some other strategies as well, so this is much more advanced planning
But it starts with an AV trust if you're married or some additional plan within our
Basic revocable living trust if you're single
Now those my friends are the four main reasons why you might need a revocable living trust as part of it more
Well designed and a little more complex estate plan rather than just knocking something out with will
So talk to your lawyer if you need some help you can always call our law firm
We'd love to be of service, but get some planning done
This is something that is really gonna leave a much more organized situation for your family
And if you're working so hard to build up those assets make sure you have a constructive way of
Passing them on to your family or a charity or whatever is important to you
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