Mark Fishbein of ALTA Estate specializes in strategic estate plans tailored to each client’s needs, including whether to set up a revocable living trust. He strives to provide his clients with peace of mind by managing and distributing your estate according to your wishes, focusing on minimizing taxes, avoiding probate, and protecting your legacy for future generations. Mark Fishbein and the ALTA Estate team bring a wealth of experience and a personalized approach to every aspect of estate planning, whether you’re looking to establish a living trust, navigate the complexities of estate taxes, or secure your family’s future.
What Is a Living Trust?
A living trust is a legal arrangement that allows you to control your assets during your lifetime and specify how those assets are distributed upon your death, effectively bypassing probate court. This flexible estate planning tool adjusts as circumstances change. Unlike a will, a living trust takes effect while you are alive, offering immediate benefits. Unlike a will, a living trust takes effect while you are alive, offering immediate benefits.
Revocable vs. Irrevocable Living Trusts
The primary difference between a revocable and an irrevocable living trust is the ability to amend or revoke the trust. A revocable trust allows you to change terms or terminate it during your lifetime. In contrast, once established, you cannot change an irrevocable trust, which offers certain tax benefits and asset protection advantages.
The Role of a Trustee in a Living Trust
A trustee manages the living trust according to the terms outlined in the trust agreement. You can appoint yourself as the trustee, maintaining control over the assets in the trust, or you can appoint another individual or a bank or trust company to manage the trust on your behalf, which is especially useful in cases of incapacitation.
How Does a Living Trust Avoid Probate?
One of the most significant advantages of a living trust is its ability to avoid probate. Assets held in a living trust bypass the probate process, allowing for a quicker distribution of assets to beneficiaries, which is a critical advantage in deciding the type of trust to create. Bypassing probate saves time and maintains privacy since the probate process is a matter of public record, making it a significant reason to consider a living trust in your estate planning.
Benefits of a Living Trust for Estate Planning
A living trust offers several benefits for estate planning, including avoiding probate, providing clear instructions for asset distribution, and maintaining control over your estate. It also lets you manage your assets in the event of incapacitation, ensuring you handle your estate according to your wishes and avoid delays in probate court.
Protecting Minor Children with a Living Trust
A living trust can be particularly beneficial if you have minor children, as it enables you to appoint a successor trustee to manage the assets on behalf of your children until they reach an age you specify in the trust document. Ensure the assets serve their intended purpose, such as education or healthcare, to align with the trust’s terms.
Living Trust vs. Last Will and Testament
While both a living trust and a last will are essential estate planning tools, they serve different purposes. A will takes effect after your death and goes through probate, while a living trust takes effect during your lifetime and can avoid probate. Understanding the differences can help you decide which is more suitable for your estate planning needs; you may want to consider a living trust.
Key Steps in Setting Up a Living Trust
Setting up a living trust involves creating a trust document, appointing a trustee, and transferring assets into the trust. You should seek legal advice to set up the trust correctly, align it with your estate planning goals, and determine if you should establish a revocable living trust.
When a Living Trust May Not Be Right for You
While a living trust offers many advantages, it may only suit some. Factors such as the size of your estate, your financial goals, and the complexity of your estate plan can influence whether a living trust is the right choice for you.
Living Trusts and Estate Taxes: What You Need to Know
Understanding the impact of a living trust on estate taxes and how different types of trusts can influence your tax obligations is essential. While revocable living trusts do not typically offer tax benefits, irrevocable trusts can affect your estate’s tax liability, making it essential to understand the terms of the trust when planning. Consulting with a financial advisor or estate planning attorney can clarify how a living trust fits your overall tax strategy.
Hiring a Professional Estate Planner
ALTA Estate, led by Mark Fishbein, focuses on all aspects of estate planning, from living trusts to tax strategies, Trust in the expertise of Mark Fishbein and the ALTA Estate team to guide you through the estate planning process with clarity, compassion, and unparalleled professionalism.
Feel free to call the Tucson Estate Planning Offices at (520) 462-4058 to learn more about proper and complete Tucson Estate Planners and Asset Protection, including the Emergency Telephone Hotline Program afforded to you and your family members at no charge during times of crisis and the other benefits of estate planning described above. Follow Mark Fishbein Tucson Estate Planner on LinkedIn or Facebook.
