FAQs

No. Everything is exactly the same. The mortgage company does not need to be notified (since they are a creditor and not an asset). Usually the loan just stays in the person’s name as-is, paid just the same as if there was no living trust.

Very simple. It’s just like selling a house before creating a living trust. When a new house is purchased, the realtor will indicate that the owner has a living trust, and place the living trust as the owner instead of the person’s own name. That’s it.

Yes. A person may refinance a home as many times as they want. During the process, the person may have to temporarily transfer the title of the home back to themselves, and then back into the trust again. Usually the escrow company helps people accomplish the transfer back and forth.

Yes. A person’s share can go into the trust without affecting any other owners of the property.

No. The living trust can only protect property owned in the United States. An attorney from that country should be contacted and consulted about issues with the eventual inheritance of foreign owned property.

No. But there is an exemption of $5.6 million for individuals and $11.2 million combined for married couples. So, for most of us, Inheritance (or federal estate tax) is not an issue. No other taxes of any kind either.

No. Everything is exactly the same. A person (or a married couple) would still file their same tax return (just as before creating a living trust).

Very simple. Many people have the same name. So, it’s the social security number assigned to the trust that differentiates it. If a married couple, only one spouse’s social security number is chosen for use with the living trust (can be either spouse’s number).

A minor can be named, but cannot receive their inheritance until attaining the age of 18. The “successor trustee” will manage and control the minor’s inheritance until they reach 18.

Back-Ups. People name back-up beneficiaries ahead of time in their living trusts. Common choices would be to leave the deceased beneficiaries share to the other named beneficiaries, or to the children of the beneficiary (in other words, grandchildren).

No. Unlike a Will, there is no requirement to record or ever make it available to the public. Completely private. Only the original notarized living trust is valid, so it should be kept in a safe place. Copies can be provided to anyone by the Trustor. (The law firm can email a pdf version of an unsigned copy upon request)

Yes. An asset, such as a home, generally avoids probate. However, there are a whole host of other problems from joint tenancy. Capital gains tax and lawsuits against a joint tenant can be much worse in many cases. So, usually joint tenancy is not a very good means to solving a person’s probate and inheritance issues.

Yes. Payable on Death bank accounts, for example, with named beneficiaries can avoid probate. But, that usually does not take care of all the assets a person owns (such as their home, etc.) and can have huge problems if the person becomes incapacitated while living. A living trust is designed to protect a person’s entire estate.

Living trusts contain a special Will, known as a Pour-Over-Will, that is designed to work in conjunction with the living trust.

It is not required to pay a fee to a successor trustee. However, if the Trustor wishes to pay a fee they can. For example, the Trustor could make a special gift of $2,000 to the successor trustee as compensation for performing their duties. Commonly, if the successor trustee is also a beneficiary, no compensation is paid since they will be receiving an inheritance.

Yes. Anyone can be named a successor trustee, even beneficiaries.

No. Just use the name of the trust, instead of the individual, as the owner of the new property or investment. It’s that simple!

A non-citizen, even a married couple and both are not U.S. citizens, can get a living trust.

A living trust is generally valid in all 50 states, regardless of where it was originally created.

Anyone can be named in a power of attorney, even a living trust beneficiary.

Yes. Same sex couples can have a living trust. Most likely one living trust, but there are rare instances where the attorney will recommend two separate trusts.

Yes. Common law couples can have a living trust. Most likely one living trust, but there are rare instances where the attorney will recommend two separate trusts.

At the death of the first spouse, there are two options. The surviving spouse can be allowed to make changes to the living trust, or both spouses can agree ahead of time to no changes (which is common with blended marriages).