There are a lot of things that can be accomplished online, but you probably want to think twice before planning your estate using a download or worksheet that you get off the Internet from one of the web-based marketers.
These sites offer tools that you can use to create a revocable living trust. We can get into the details regarding why you may want to steer clear of DIY legal documents, but we would like to make a different point here.
All trusts are not created equal. Different trusts are utilized for different purposes. There is no reason to expect a layperson to understand the intricacies of the various types of trusts that are used in the field of estate planning.
Some people would like to place funds into a trust to gain tax efficiency. Asset protection may be another goal. There are those who need to set aside resources for a family member with special needs without jeopardizing government benefits.
A simple revocable living trust will not accomplish any of the above objectives. With these trusts you retain incidents of ownership, so they do count toward your taxable estate, interested parties could seek to attach funds placed into the trust, and these trusts are not the appropriate way to provide for someone with special needs.
The suggestion here is to get the facts before you decide that a particular legal device is right for you. Our firm offers free seminars on living trusts, special needs planning, Medi-Cal planning, and VA special pensions, so there is really no reason to feel as though you have to go it alone. We also offer free consultations to those who attend our seminars. For more information on upcoming seminars, click here.
- IRS Confirms Grantor Trust Status Alone Does Not Cause a Step-Up in Basis - September 14, 2023
- Estate Planning Insight: How to Tackle Challenges After a Loss - September 12, 2023
- Team Litherland, Kennedy & Associates Volunteer Day at Martha’s Kitchen (VIDEO) - September 1, 2023