Continued from What Is A Living Trust
1. Make sure the Trustors (usually you and your spouse)
are the only ones authorized to amend the Trust. Once you're unable to
speak for yourself, you don't want anyone changing your directives.
2. Make sure the Living Trust includes all your major assets.
3. Make sure the Living Trust is accompanied by a "Pour over" Will, which
assigns all other personal property to the Trust upon your death.
4. Make sure all your bank and investment accounts are listed under the
Trust and the banks have a copy of the Trust on file. If your bank allows, it
wouldn't be bad to have a signature card on file for your first alternate
Trustee (I had a little trouble with my one of mother's banks because my
signature wasn't on file, even though I had all the right documents).
5. Make sure the Living Trust is the beneficiary on all insurance policies
and on your Social Security (death benefits).
6. Make sure your trust dictates exactly what you want to do with your
estate. Don't expect your Trustee to remember you want that painting to go
to your friend, Sue. It's best to leave no room for confusion unless you
want your children to fight.
7. Your Living Trust should define incapacitation, so there is no confusion
when your Trustee is to take over management of your affairs. If you use a
Power of Attorney, make sure your first Alternate Trustee is your
"Attorney-in-Fact" and the definition of
incapacitation is identical on both documents.
8. Your Living Trust should include a list of who will receive assets from
your estate and what to do if they die before you (this happened in my Mom's
case).
9. The Living Trust can contain or refer to a "Living Will" or "Advance
Directive" for those providing your health care. This is a document that
often accompanies a Power Of Attorney For Health Care Decisions so your Trustee
can provide doctors and hospitals with documents signed by you to direct their
actions in specific cases. See our page
What Is A Living Will for more information.
10. Your Living Trust should contain a "poison pill" to discourage people
from contesting your wishes in court. Basically, it's wording to the
effect that anyone who challenges your Living Trust in court will forfeit their
right to anything granted them under the Trust.
11. Have your Trustee help you prepare your Living Trust
so you know they are familiar with your wishes.
12. Your Living Trust should be prepared by a trusted lawyer who is
licensed to practice in your State. Don't let strangers who call or come
to your door do this work, no matter what organization they say they represent.
I found out after my Mom's Trust was completed that the company preyed on the
elderly by doing Living Trusts for them and then conning them out of their savings.
We got it stopped just in time. Pay the money to have someone competent,
trustworthy and accountable, like an attorney. You should be able to find
a good lawyer by asking those you trust for referrals or by researching your
State's Bar Association. This is really too important to "let your fingers
do the walking."
Finally, even though it's called a Trust it doesn't make trust any easier to do. You are literally putting your life and your family in your Trustee's hands. Make sure the people you choose are those who can handle such responsibility with love and honesty. You can be sure there is at least one who will always have your interest at heart. That one is God. He can help no matter what situation you find in the future. If you want His help, click on Healing From God.
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