Lela invites you to listen to her live PODCAST on why you should get a Living Trust now!
Listen on Spotify now: https://open.spotify.com/episode/3WkuYtMkatt2eWtG9HDHhp
How does a irrevocable living trust work?
An irrevocable trust has a grantor, a trustee and a beneficiary or beneficiaries.
Once the grantor places an asset in an irrevocable trust, it is a gift to the trust and the grantor cannot revoke it. … Property transferred to an irrevocable living trust does not count toward the gross value of an estate.
What does revocable living trust mean?
A revocable living trust is a popular estate planning tool that you can use to determine who will get your property when you die. Most living trusts are “revocable” because you can change them as your circumstances or wishes change. Revocable living trusts are “living” because you make them during your lifetime.
Should you OPT in to set-up a revocable living trust – make sure you obtain a Homestead Declaration on your home immediately.
Homestead Declaration refers to a form filed with the county recorder’s office to put on record one’s right to a homestead exemption.
A homestead declaration protects a person’s home from being seized and sold in the event a money judgment is entered against him/her by a court.
What is the purpose of a homestead?
In certain states, homeowners can take advantage of what’s called a homestead exemption. Basically, a homestead exemption allows a homeowner to protect the value of her principal residence from creditors and property taxes.
How much does it cost to get a Living Trust?
Generally, a trust ranges in price from $1,500 to $3,000. This includes all documents required to establish a trust, powers of attorney, both financial and health care related. A simple will in California generally ranges in price from $400 to $700.
Irrevocable Trust Basics
Irrevocable trusts are commonly created as part of a person’s overall estate plan. The property in the trust isn’t subject to probate by a state court, which minimizes the chances someone other than the intended beneficiaries will receive money from the trust. The trust is created when a person, called the “grantor,” establishes the terms of the trust in accordance with state law, such as naming beneficiaries and funding the trust with money or property. What distinguishes an irrevocable trust from a revocable one is that once the grantor transfers money and property, he no longer has any control over it. As a result, either the trust or its beneficiaries are responsible for paying income tax on any income generated by the cash and other assets in the trust.