ESTATE PLANNING
Commonly Asked Estate Planning Questions |
Q: Can I act as my own trustee during my lifetime?
Yes, most individuals that set up a Living Trust wish to retain control of their assets until death or incapacity. As the initial trustee, you will continue to manage your money and assets as you did before the trust was set up.
Q: Do I lose control once my assets are in my Living Trust?
No, you retain the same control that you had before the assets were transferred into your new trust name. You can buy and sell real estate, invest, close accounts, etc.
Q: Does a Living Will avoid income taxes?
No. A Living Trust is designed to eliminate capital gains and estate taxes. The income you receive from the assets in your Living Trust will be taxed the same way theyare now.
Q: Do Jointly owned assets avoid probate?
Yes, but keep in mind that if you put another individual’s name on your account or assets you take on a lot of risks. For example, if that joint owner gets sued, his creditors could come after that jointly owned money. If the joint owner gets divorced, the soon to be ex-spouse could make a claim for part of that money.
Q: How large does my estate have to be in order to put together a Living Trust?
If you own real estate, you should consider setting up a Living Trust. The cost to probate just one piece of real estate at your death can well exceed the cost of setting up a Living Trust. If you add the value of other accounts to the value of your real estate, the probate costs keep going up.
Q: Who will inherit my estate if I do not plan ahead?
The State of Michigan has adopted laws that direct how your assets are to be divided. The division of assets will depend on whether you are survived by a spouse, children of that marriage or a prior marriage, etc. The division of assets as determined by State laws may not reflect your wishes.
Q: What is a revocable Living Trust?
A revocable Living Trust is your personal contract or agreement. This Trust agreement identifies who you want to oversee your assets at death or incapacity and it identifies who should inherit from you. Because of the legal nature of a trust, assets titled in the name of the trust do not have to go through probate court before the assets are divided up and dispersed.
Q: Are there any disadvantages to a Living Trust?
No. A Living Trust allows you to retain control during your lifetime. As the creator of the Living Trust you can amend or revoke the trust while you are living and competent.
Q: Is a Living Trust a good idea for a single person?
Yes. A Living Trust is good for everyone. It is just as important for a single person to identify their beneficiaries. Such beneficiaries may include parents, siblings, nieces and nephews and charity.
Q: Is a Living Trust just for rich people?
No. A Living Trust is for anyone that wants to keep their estate private at the time of death and avoid the costs associated with probate.
Q: Can I go to any attorney to create a Living Trust?
No. You should retain an attorney that specializes in estate planning. You wouldn’t just go to any old doctor for heart surgery. Working with an attorney should be no different.
Q: If I move to another state, is my Living Trust still valid?
Yes. Every state recognizes the Living Trust.
Q: Does all my real estate get transferred into my Living Trust?
Yes. In order to avoid probate, all assets should be transferred into your Living Trust. Transferring real estate into your Living Trust is an non-taxable transfer and the transfer will not affect your current property taxes.
Q: Is a Living Trust recorded?
No. A Living Trust is a private document. The only individuals that are entitled to information about your Living Trust are your successor Trustees and your beneficiaries.
Q: Does my Trustees and Beneficiaries have to live in the same state as me?
No. You can designate an out of state trustee and out of state beneficiaries.
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Estate Planning is a Specialized Matter! |
Each family situation is unique and requires the advice of an experienced estate planning attorney. Danielle Redmond Streed is a graduate of Thomas M. Cooley School of Law (1991). Danielle has practiced in the Kalamazoo area since 1991 and joined the family firm of Redmond & Redmond (now Redmond, Redmond & Yokom). She specializes in estate planning, Medicaid planning, estate administration, probate, and charitable giving. |
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Since 1998, Danielle has conducted a short radio program called "Your Estate Matters". The show covers various Estate Planning topics and issues. The program runs every Tuesday morning at 7:55 a.m. with Lori Moore. |
For questions you can contact Danielle
at the numbers or email link listed below. |
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