It’s Richard Morgan, Morgan and DiSalvo.
We just completed a video on the benefits of utilizing a revocable living trust rather than a will as your main dispositive document as part of your estate plan. Now the question is, if you chose to use a revocable living trust as your main dispositive document, that document says what happens to your stuff when you die, the question is, to what extent do you need to put any assets in that trust while you’re alive?
To me, the answer depends on to what extent do you need the assets in there while you’re alive to get the benefits you’re trying to achieve. Let’s go through the benefits again and let’s tell you each one, do you need to fund it to get that benefit.
Number one, you’re in a bad probate state like Florida. Yes, you need to fully fund that trust. Number two, avoid a post-death dispute. Yes, you need to fully fund that trust. Longterm and capacity benefits, you do not need to put any assets in that trust unless and until you actually start losing mental capacity. Privacy, you do not need to fund it at all. You own or plan to purchase real estate in another state, you need to make sure that that real estate, that real property, the title that, whenever you own it, either now or when you buy it in the future, is owned by the trustee, the trust. That’s the only asset you need to put in, not all your assets, just that particular asset. Specific bequest schedule, no need to put any assets in a trust while you’re alive.
You want a trust company to serve as your power of attorney agent, no need to put any assets in the revocable trust while you’re alive. Desire to take one for the team, if you’ve got it fully funded because that’s the whole premise, you want to go ahead and do all the work so they don’t have to do it later.
Richard Morgan, Morgan and DiSalvo.