If you’re thinking about the estate planning tools that you want to utilize, you’ll likely consider the use of a living trust or a living will.  It’s important to understand that these documents are very different and are used for different reasons.  While not everyone may choose to create a living trust, most people choose the use of a living will.  Take a look at the following information, to better understand these planning tools.  If you have any questions, or if you’d like to create a living trust or a living will, contact an estate planning attorney.

What are the benefits of a living trust?

A living trust is a planning tool that allows you to accomplish a number of things.  For one, it allows you to have full control over your assets during your lifetime, even during incapacity.  Second, if used correctly, it also allows the assets in your trust to avoid probate.  Third, you can include special needs planning, charitable planning, pet planning, legacy planning, asset protection planning, and bloodline protection planning in your trust.

Why would I want to use a living will?

A living will is an estate planning tool that allows you to make important end of life decisions ahead of time.  If you become incapacitated and are in an irreversible coma or a persistent vegetative state, this document is used to determine the medical treatment that will be permitted and that which will not.  Many people use this document to outline their wishes regarding the use of life support.  If you don’t want to remain hooked up on machines in order to live, then you want to create this planning document.

Make sure that you understand the differences between these important documents.  This will allow you to create a plan that fits in with your needs and goals.  If you have any questions, or if you’d like to create a living trust or a living will, consult with a qualified estate planning attorney.

Davidov Law Group is a member of the American Academy of Estate Planning Attorneys.

We’ve found that our clients benefit from reviewing our “9 Important Trust Planning Terms” so we’re sharing it with you as well.  If you have any trust planning questions or concerns, be sure to consult with a qualified trust planning – estate planning attorney.

Trust

A trust is a legal agreement, technically, a contract.  The trust is like an instruction book that gives guidance to the trustee as to how to carry out his duties.

Irrevocable Trust

A trust that, in general, cannot be changed (without court order or trust protector intervention.)  Examples of irrevocable trusts would include insurance trusts, children’s trusts, spousal trusts, qualified residence trusts, and charitable trusts.  A revocable trust becomes irrevocable upon the disability or death of the trust maker.

Revocable Trust

A trust that can be changed anytime while the trust maker is alive and well.  The trust maker retains full control over assets and trust provisions because he serves as trustee.  A revocable trust becomes irrevocable if the trust maker becomes incapacitated or dies.

Trustee

The individual or corporate fiduciary (i.e. bank or trust company) that holds legal title to trust assets and carries out the instructions in the trust.

Testamentary Trust

A trust created under a will typically for a surviving spouse and children.

Trustee Powers

The trust provisions (i.e. instructions) that define what the trustee must, may, and cannot do.

Totten Trust

A “totten trust” is a pay-on-death (POD) or transfer-on-death (TOD) bank account.

Trust Corpus

The assets held in the name of the trust are called “trust corpus” or “trust res.”

Trust Merger

When the beneficiary and the trustee are the same individual, it is called a “trust merger.”  It’s as if no trust exists.  This is why it’s imperative that your beneficiary serves with a co-trustee to retain asset protection.

If you’re interested in trust planning or have estate planning questions, be sure to consult a trust planning – estate planning attorney.

Davidov Law Group is a member of the American Academy of Estate Planning Attorneys.

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Elder Law and Medicaid Planning

Medicaid needs arise when you least expect them. Americans are living longer than before. At the turn of the 20th century, life expectancy was about 47 years. In the 21st Century, life expectancy has doubled. As a result, we face more challenges and transitions in our lives than those who came before us.

PROTECT your life savings.
INCREASE the amount of income of keep.�
AVOID losing your home.
REDUCE or ELIMINATE your nursing home bills and long term care costs.
LEARN about Veteran’s Benefits.

Wills, Trust and Estate Planning

We know you want to pass your wealth to whom you want, when you want, the way you want, at the time of your death. If done correctly, a Estate Plan can help minimize estate taxes for a married couple and allow a trusted person to take over your care and finances during incapacity.

PROTECT your family.
AVOID probate delays and expenses.
SAVE estate taxes. Give your money to your family.
PRESERVE money for children or charitable causes.

Join us at our FREE Workshop this weekend. Our experienced attorneys will give you the information you need.

To register for the seminar, call our office at (718) 793-7000 , or click on this link

 http://www.davidovlaw.com/local/estate-planning-seminars.aspx

Davidov Law Group is a member of the American Academy of Estate Planning Attorneys.