Living Trust Definition - What is a Living Trust?

The best living trust definition is a written legal document which substitutes for a will as your primary estate planning vehicle. When you have a trust you transfer your assets such as your home, financial accounts and personal property to the trust. In addition you change the beneficiary or contingent beneficiary of retirement accounts and life insurance to the trust. These assets are then administered for your benefit during your lifetime, and either continue to be held or transferred to your beneficiaries when you die.

The creator, also called the grantor, of the trust usually names him or herself as the initial trustee in charge of managing the assets. This allows the grantor to remain in control of the assets during his or her lifetime. For all practical purposes under this living trust definition, nothing changes in the way the grantor manages or controls the assets after they are put in trust. The only difference is the named owner.

A successor trustee is named in the document, usually a family member or friend but sometimes an institution such as a bank or trust company. This successor trustee then will manage the trust assets for benefit of the grantor if the grantor becomes disabled and for the contingent beneficiaries after the grantor dies.

This living trust definition is for the revocable living trust. It is also sometimes referred to as a revocable inter vivos or a grantor trust. It may be revoked or amended at any time by the grantors as long as they are still competent.

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Conservatorship Information

A conservatorship is a court proceeding that grants one or more people the authority to make financial or health care decisions for another because of a mental or physical incapacity that renders a person unable to make informed and sound decisions.

A conservatorship can be over the person, the estate, or both. The person appointed by the court to make decisions is called the conservator, and the person about whom decisions will be made is called the conservatee.

Conservators are generally family members or a professional conservatorship company and in some cases, the Public Guardian's office may be appointed. Regardless of who the conservator is, their duty is to act solely in the best interests of the conservatee. To insure this, court evaluation, supervision and monitoring of the conservatorship is established.

Should You Put Your Rental Property Into Your Living Trust or LLC?

Should you put your rental property into your living trust or LLC?

QDRO Forms to Divide Pension Benefits in Divorce - "Shared Interest" Or "Separate Interest" Approach

Many people facing the prospect of divorce are surprised to learn that pension benefits accrued during the course of a marriage are considered marital property (or, in some states such as California, community property) that is divided between the spouses upon divorce. A pension plan falls under the category of retirement plans known as defined benefit plans. These types of retirement plans generally provide that upon retirement, the participant (employee) is entitled to a monthly annuity that is payable over his or her lifetime.

Because of certain provisions contained a Federal law known as the Employment Retirement Security Act, a divorce judgment or matrimonial settlement agreement, standing alone, is not a legally sufficient mechanism for dividing a pension plan. It is essential that a further order, known as a qualified domestic relations order (QDRO) be entered by the court and approved by the pension plan administrator.

In situations where the participant spouse is not yet retired, the QDRO form can utilize two different methods for dividing pension benefits. These include the "shared interest approach" and "separate interest approach."

If a QDRO form uses the Shared Interest Approach, payments to the Alternate Payee cannot begin until the Participant chooses to retire and begins to receive a retirement allowance. Furthermore, payments to the Alternate Payee must end upon the Participant's death unless the Alternate Payee was designated in the QDRO as the surviving spouse of the Participant for the purpose of electing a Qualified Joint and Survivor Annuity and such election was elected by the Participant at the time of the Participant's retirement.

If a QDRO form applies the Separate Interest Approach, a "separate interest" is carved out for the Alternate Payee and adjusted to his or her actuarial life expectancy. In addition, the Alternate Payee controls the timing and manner of his or her receipt of the benefit payments. The Alternate Payee can commence receiving benefits at the Participant's earliest retirement date, rather than wait for the Participant to begin to receive a retirement allowance.

In most instances, it is highly beneficial for the non-participant spouse that the QDRO form utilize a separate interest approach. Sample QDRO forms are available for download. Upon completion of a proposed QDRO form, the document must be submitted to the pension plan administrator for approval, and, thereafter, to the divorce court adjudicating the matter.

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What Is A Limited Power of Attorney?

A limited power of attorney is used for a very specific purpose that can be clearly defined when a power of attorney is needed. The agent or attorney-in-fact that is appointed does not have control over the person's entire life, only the specified authority granted to them in the form. In these cases, these types of attorneys are usually used for financial transactions and the sales of real estate or personal property such as motor vehicles. Again, this appointment has no control or influence over any other aspect of the person's life. They can only make decisions in a limited area and within limited parameters.

With a limited attorney, it can be given to a person or organization for a specific dealing. The person or organization has the authority to do what is specified in the power of attorney until it expires or it is revoked. The authority granted to the agent or attorney-in-fact can lasts as long as needed or includes a specific date that it will expire. Most anything a person can do themselves can also be done through an agent or attorney-in-fact appointed in a limited power of attorney.

There are a number of reasons that a limited attorney may be used. However, these are not the only reasons and there are many more, as long as they are not disallowed by state law. Some of the power or authority granted to an agent or attorney-in-fact can include:

* Any and all banking transactions

* Safety deposit box entry

* US security transactions

* Debt collections

* Real estate sales

* Real estate management

* Real estate purchases

* Borrowing money

* Management of a business

* Government issues

* Financial decision making

* Gift giving and real estate planning

* Buying and selling vehicles

* Buying and selling of other property, such as jewelry, furniture or electronics

* The signing of paychecks

* Moving dealings

* Shipping and storing items and goods

* Custodial care of children

* Child medical care

A limited power of attorney is used when a person can not take care of the business themselves. For example, when the person will be out of the country, or there are other commitments or health reasons that stop them from being able to complete the task themselves.

Giving someone power of attorney status is different from state to state, however it usually entails filling out a form and signing off on the document. The limited power of attorney form can also be revoked at any time and for any reason as well. The person still has complete control over their life and the status of the limited power of attorney appointment.

Choosing an agent or attorney-in-fact for a limited power of attorney should still be considered carefully to make sure that they will carry out the person's wishes correctly and will act in the best interest of the person.

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What is Guardianship and Power of Attorney?

Learn what the difference is between guardianship and power of attorney.

The Proper Estate Planning Tips in Case of an Emergency!

The proper estate planning documents you need in case of emergency! Nobody likes the thought of an emergency cutting a life short. Especially for families, it's really hard to imagine what might happen if there were some sort of tragic accident, an unforeseen illness, or a catastrophic disaster that resulted in the casualty of a vital family member. Without the necessary legal documents such as a living will or power or attorney, the wellbeing of a family may be threatened and your expressed or even written wishes may not necessarily be honored.

If someone is involved in a serious accident, but is injured to the point they are unable to communicate their wishes, a healthcare power of attorney is given the legitimate right to make major healthcare decisions on the patient's behalf. For example, if you do not wish to be placed on life support for an extended period of time, the only way to make this preference legal is taking the proper steps to create lawfully acceptable paperwork and documentation.

When someone dies without any legally authorized instruction for the delegation of their belongings and investments, all property goes into a very complex court proceeding where assets are given to the spouse, next of kin, or separated between various related parties. In this situation, a third party has full control over how these items and funds are distributed, regardless if the deceased had verbally expressed other wishes. A legalized will is absolutely necessary to ensure that your belongings are properly taken care of after your passing.

Have these legal documents prepared today so that you ensure that your family is taken care of in the event of an emergency.

Prepared Will is a legally enforceable declaration of how a person wishes his or her property to be distributed after death.

Health Care Power of Attorney is a legal form that allows an individual to empower another with decisions regarding his or her healthcare and medical treatment.

Living Will Directive is a written statement detailing a person's desires regarding their medical treatment in circumstances in which they are no longer able to express informed consent.

I know the fees associated with the creation of these documents can become incredibly expensive if prepared by a private lawyer. I also know that people are looking to the web for do it yourself forms which can turn into a nightmare if not done correctly. In many states these documents if not done by an attorney can be thrown out and not accepted by a court.

There are affordable solutions so that your documents are prepared by an attorney and reviewed annually for you, your spouse, and covered family members.

When it comes to protecting your family and your wishes, don't waste any more time or put your loved ones at risk any longer.

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Why Should I Consider Creating a Revocable Living Trust?

Why should I consider creating a revocable living trust?

Defining Legal Terms - By The People

Rene goes over what types of questions they can help answer at By The People. A legal document preparation company.

See more at http://www.bythepeopleca.com

Probate and Administrative Process, Know Your Rights

Probate is the system in which the court's system's method of processing the estates of a dead person. It is a legal document that enables the administration of the estate of the deceased. It allows for the resolving of claims and distribution of the deceased's will. Any grievances surrounding a deceased person's estate are filed in the probate court also known as the surrogate court. Once probated, the will becomes a legal instrument that can be enforced by the executor.

Administration process

Administration process of an estate on the other hand is the process by which the deceased person's assets are collected, maintained and distributed. An estate administrator sees to the proper administration of the will.

The Probate process

The probate process begins after the death of a person. An interested person files an application to administer the estate; a fiduciary is then appointed who is to administer the estate and at times may be required to pay a bond to safeguard and to insure the estate. Creditors are notified and legal notices published. There may be filed a petition to appoint a personal representative may need to be filed and letters of administration obtained. All these processes must be done in accordance with the limitation clause.

Property that avoids probate

Property that passes to another person contractually upon the death of a person does not enter probate for example a jointly owned property with rights of survivorship. Property held in a revocable or irrevocable trust that was created when the grantor's was still alive does not also enter probate. In most of these cases the property is distributed privately and without many issues thus no court action is required.

What happens in the probate and administrative process?

After a probate case has been filed in court, an inventory is entered and the deceased's property collected. The debts and taxes are paid first then the remaining property distributed to the beneficiaries. The probate and administrative process may be challenged at any time as a whole or part of it. The issues that arise during such hearings include will contests and paternity issues and these have to be solved before the matter is decided.

The need for the appointment of an administrator arises where the deceased left no will, some assets are not disposed of by the will, in cases where there is a will however, the case goes to probate directly. The estate administrators act like will executors but where the will does not state how to distribute of property, they follow the laid down laws.

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