Do you need an Estate Planning Attorney in Clinton Township?

What is a revocable living Trust?

A Revocable living trust is a legal arrangement to hold and manage property and then pass that property or benefits of that property to beneficiaries. In a formal since, think of it as a contract with oneself. Informally, think of it as a separate person, who could sit in the chair next to you. We would give this living trust a name. We would call it the “Your Name” Revocable Living Trust dated _________, 2021. The person setting up the trust in known as the Settlor and the person initially managing the trust is you, the Trustee. You will name a successor Trustee to take over after you fail.

Once a person sets up a Revocable Living Trust, they would retitle their property such as real estate, bank, and investment accounts, into this trust soon after it has been established.  Once the assets are titled in your trust, they will pass directly to whom and when you direct, in your living trust and avoid the cost and delays of the probate process.

Why do I need a Revocable Living Trust?

You will need a living trust if you want to have your assets avoid probate after you die or become incapacitated. You will need living trust to avoid guardianships, conservatorship and living probate, upon incapacity. You need a living trust to delay gifts to minor beneficiary’s even into young adulthood, to pay for things such as basic needs to education.

Do I need a Last Will & Testament with my Living Trust?

Yes, to complete a Living Trust Estate plan, a Last Will & Testament is necessary. It can be confusing at first but the Last Will & Testament that comes with a Living Trust is called a Pour Over Will also know as a Catch All Will. The purpose of the Will with the Living Trust is to catch and deal with any property a person forgot to put in their trust, before they passed.

What other documents do I need, along with my living trust to complete an estate plan?

Although a person may have a trust, it is still necessary to have a Pour Over Will. This and other documents help ensure the secure and ongoing process of our person and their estate, should be become incapacity or upon death.

What if we don’t die? A large portion of American seniors are incapacitated at some point before passing. How does the family avoid “living probate”, such as having to set up a guardianship or conservatorship for a loved one who lost their capacity to make decisions?

To secure our personal dignity and secure our estate, each person should also have these additional documents:

A Durable Financial Power of Attorney. Known as DPA, this document helps manage your assets and debt should you be unavailable or incapacitated.  This is a document where you appoint another person to make your personal financial decisions and consent to business arrangements. This person is called your attorney-in-fact.

Effective either immediately or upon your incapacity. This document helps you and your family avoid the living probate process in having to set up a conservatorship through the local county probate court, to get legal authority and permission to access your funds or give consent on your behalf.

A Patient Advocate Designation. Known as PAD, helps manage your medical, healthcare and end of life decisions, should you become incapacitated. This is a doc where you appoint another person to make your personal medical decisions and arrangements.

This document is effective upon your incapacity. This tool will help you and your family avoid the living probate process or needing to set up a guardianship through the local county probate court, to get legal authority and permission to access your funds or give consent you’re your behalf.