• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Who We Are
    • About Our Firm
    • Career Opportunities
    • Meet Our Team
    • News and Events
    • Seniors Rock Radio
  • Estate Planning
    • Elder Law & Medicaid Planning
    • Estate Planning Services
    • Estate and Gift Tax Figures
    • Family Farm Succession Planning
    • Family-Owned Businesses & Farms
    • IRA Planning
      • Planning With An IRA
      • IRA & Retirement Planning
    • Legacy Planning Services
    • LGBTQ Estate Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
    • Young Families
  • Elder Law
    • Coping With Alzheimer’s
    • Elder Law Resources
      • Elder Law Reports
    • Guardianship & Conservatorship
    • Hospice Care
    • Veteran’s Benefits
  • Resources
    • Definitions
    • FREE Estate Planning Worksheet
    • FREE Webinars
    • Estate Administration Legal Guide
    • Estate Planning Articles
      • Questions for Your Estate Planning Attorney Before Creating Your First Estate Plan
      • How to Create Your First Estate Plan in 2022
      • How to Choose a Guardian for Your Child
      • Address These Three Questions in Your First Estate Plan
    • Estate and Gift Tax Figures
    • Frequently Asked Questions
      • Adult Guardianship
      • Alzheimer’s Care
      • Custodial Accounts for Minors
      • Estate Planning
      • FAQs for Families Without an Estate Plan
      • Elder Law
      • IRA & Retirement Planning
      • Is Your Estate Plan Outdated?
      • Legacy Planning
      • LGBTQ Estate Planning
      • Medicare and Social Security
      • Probate
      • Probate Avoidance
      • Irrevocable Trusts
      • Trust Administration
      • Trusts
      • Veterans’ Benefits
      • Wills
    • Newsletters
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
    • Top Estate Planning Techniques
  • Reviews
    • Our Reviews
    • Review Us
  • Medicaid Planning
    • Medicaid Planning
    • Emergency Medicaid & Nursing Home Planning
    • Medicaid Frequently Asked Questions
    • Medicaid Resources
  • Blog
  • Contact Us

Law Office of Michael Robinson, P.C.

Estate Planning Services in Rochester, New York and the Finger Lakes Area

Connect With Us Today

(585) 374-5210
Law Pay Button
Attend a Free Webinar
Home » Estate Planning » Living Trust Questions Answered

Living Trust Questions Answered

October 17, 2019Estate Planning

living trustThe revocable living trust is an estate planning device that is ideal for a wide range of different people, but many do not understand the benefits. In this post, we will explain them through the utilization of a hypothetical question and answer session between an inquisitive client and an estate planning attorney.

Trusts are only for wealthy people, right?

This is probably the biggest misconception that is held about estate planning. There are trusts that are used by very high net worth individuals, but a living trust would not be the right choice for them. These trusts are used by informed folks of relatively ordinary means.

Would I lose control of assets that I sign over to a living trust?

No, remember, this is a revocable living trust. If you ever choose to do so, you can revoke the trust entirely and take back direct personal possession of the assets that you conveyed into the trust.

Yes, but doesn’t the trustee make all the decisions?

Absolutely, but guess what? While you are alive and well, you can act as the trustee, and you can also be the beneficiary. Because of this arrangement, you have absolute control in every way.

Can you add or remove assets from a living trust once you have established it?

Of course, you can convey assets into the trust at any time, and you are free to remove them as well. In fact, this is very easily done, especially if you develop a relationship with our firm.

Who can act as the trustee after I pass away?

Any adult that is willing to assume the role that is of sound mind can legally act as a trustee. This being stated, the person should certainly have a good deal of financial acumen, and you should beware of potential conflicts of interest. Longevity should be taken into consideration as well.

If you don’t know anyone that would be suitable, or if you want to be absolutely certain that things are done correctly, you could use a professional fiduciary. Banks and trust companies provide trustee services.

Are assets in a living trust protected if I am ever sued?

No, because the trust is revocable, you would be retaining incidents of ownership. As a result, the assets in the trust would be fair game for the litigant seeking redress. This being stated, there are asset protection trusts, but they would be irrevocable.

How about Medicaid eligibility, are the asset counted by the program if I need coverage to pay for long-term care?

Once again, the answer is no, but you could establish an income only Medicaid trust as an alternative. With this type of trust, you could continue to earn income from the earnings of the trust, but the principal or corpus would not be counted if you apply for Medicaid.

Are the distributions of assets from the trust after my passing subject to probate?

This time we can say no when it is actually a good thing. The trustee that you name in the trust declaration would be empowered to distribute assets to the beneficiaries in accordance with your wishes free of the process of probate.

Attend a Free Estate Planning Workshop!

We shared a little bit of basic information in an easy to understand way in this blog post, and we invite you to take your knowledge to another level at some point in the near future. Our attorneys are holding a series of workshops, and they are chock-full of very useful information.

There is no charge to attend, but we do ask that you register in advance so that we can reserve your seat. To do just that, visit our workshop schedule page and follow the simple instructions.

 

 

  • Author
  • Recent Posts
Michael Robinson, Estate Planning Attorney
Michael Robinson, Estate Planning Attorney
Clients notice Michael Robinson’s unique approach to his estate planning practice the minute they walk through his office doors.
Michael Robinson, Estate Planning Attorney
Latest posts by Michael Robinson, Estate Planning Attorney (see all)
  • How Estate Planning for a Family May Trap the Unwary Practitioner - August 31, 2022
  • State Income Taxation of Social Security Benefits - August 24, 2022
  • Understanding Tax Apportionment Clauses - August 17, 2022

Other Articles You May Find Useful

How Estate Planning For A Family May Trap The Unwary Practitioner 150x150
How Estate Planning for a Family May Trap the Unwary Practitioner
State Income Taxation Of Social Security Benefits 150x150
State Income Taxation of Social Security Benefits
Understanding Tax Apportionment Clauses 150x150
Understanding Tax Apportionment Clauses
estate planning
Estate Planning in Five Easy Steps
How Do I Trust Thee…Part III 150x150
How Do I Trust Thee…Part III
How Do I Trust Thee…Part III 150x150
How Do I Trust Thee…Part I

Primary Sidebar

Law Office of Michael Robinson, P.C.

Blog Subscription

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube

TESTIMONIALS

News & Events

Seniors Rock Radio Show Recording 5-1-21

https://drive.google.com/file/d/1U7UkQbEGy-xY7XFAXvX9Qz7pKSVDVV3D/view?usp=drive_web   Author Recent Posts Michael Robinson, Estate Planning AttorneyClients notice Michael Robinson’s unique approach to his estate planning practice the minute they walk through his office doors. Latest posts by Michael Robinson, Estate Planning Attorney (see all) How Estate Planning for a Family May Trap the Unwary Practitioner -... Read more →

Pittsford Office

1163 Pittsford-Victor Road, Suite 120 (Powder Mill Office Park)
Pittsford, NY 14534-3817
Phone: (585) 374-5210
Fax: (585) 485-0394

See Larger Map Get Directions

Map

mrobinson_sidbr_map

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
robinson law logo

The Law Office of Michael Robinson, P.C.

Attorney Advertisement


© 2023 American Academy of Estate Planning Attorneys, Inc.