Klenk Law

Tag: Living Trust

Income-Tax

Who Pays the Income Taxes on a Revocable Trust?

Posted on Thu Nov 3, 2016, on Revocable Trusts and Living Trusts

From Our “Ask a Question” mailbag: “After being diagnosed with early-stage Alzheimer’s, I have been thinking about forming a Revocable Trust. Who pays the income tax on a Revocable Trust?”

A Revocable Living Trust can be a reliable tool in helping you manage your assets while suffering from Alzheimer’s. But, you should plan carefully and implement checks and balances.

What Is An Unfunded Trust?

Posted on Fri Sep 9, 2016, on Revocable Trusts and Living Trusts

From Our “Ask a Question” mailbag: “I have been diagnosed with early stage Alzheimers. I have heard that setting up an “unfunded trust” for long-term care might be a good idea. What is an unfunded trust and how is a trustthat is unfunded useful?”

When planning for Alzheimers, the term “unfunded trust” refers to a Revocable Living Trust which you set up but in which you currently put no assets. Because it is currently not “funded” with any assets, we call it an “unfunded trust.”

Protection From Scams; Revocable Living Trusts & Irrevocable Trusts

Posted on Wed Feb 17, 2016, on Elder Financial Scams

From our “Ask a Question” mailbag addresses providing protection from scams.

“My mother is having trouble managing her finances, and I discovered she wrote a check to some person who called her on the phone. It wasn’t much, but she was confused and in the future might get scammed out of a large sum by some telemarketer or criminal. She needs protection from scams. Can a revocable living trust or an Irrevocable Trusthelp protect her?”

Can a Trust Help Avoid Probate?

Posted on Thu Jan 28, 2016, on Trusts

From our “Ask a Question” mailbag: I have been reading about trusts to avoid probate. Can a trust help my estate avoid probate?

Trusts come in all shapes and sizes and can help you meet many different goals. If your goal is to avoid probate, you could use a Revocable Living Trust, or you could use any number of different Irrevocable Trusts. Both categories help your estate avoid probate.

Do I have to move my Gloucester County house into my Revocable Living Trust?

Posted on Wed Sep 9, 2015, on Revocable Trusts and Living Trusts

From our “Ask a Question” mailbag: I had a Revocable Living Trust created several years ago, but I have not put anything into it. I own my Philadelphia home, a few bank accounts and investment accounts. I want everything to pass to my daughter at my death, but she lives in California, so I want the transfer to be easy. Should I move my house from my name into the Revocable Trust?

The goal you have stated in forming your Revocable Living Trust was to make things easier on your daughter who lives in California. Though your intentions are good, without moving the house into the trust you really have done nothing to help her.

The basic idea surrounding a Revocable Living Trust is that during your lifetime you either move your assets into the trust or you set things up so that at your death, they pour into the trust.

Changes to New York Revocable Living Trusts – Trustees

Posted on Thu Jul 16, 2015, on Revocable Trusts and Living Trusts

From our “Ask a Question” mailbag: I formed a Revocable Living Trust to avoid New York probate and named my two sons as the co-successor trustees. It seemed a good idea at the time, but now they are not speaking to one another. Should I change the trust?

Many New Yorkers have formed Revocable Living Trusts to avoid the expensive New York probate process. For the trust to work properly, after your death, you need a successor trustee to step in to pay your final bills, taxes and to then distribute the trust assets to your heirs.

Revocable Living Trusts in PA to Protect Grandchildren Inheritance

Posted on Wed Jul 15, 2015, on Revocable Trusts and Living Trusts

From our “Ask a Question” mailbag: How do I make sure the inheritance that I leave my daughter passes to my grandchildren at her death?

If you leave your daughter an inheritance outright, then-at her death-it will be available to satisfy any creditors or law suits she might have. It might even end up in her husband’s name, rather than passing to your grandchildren.

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