Why Do I Need A Living Trust?
If you own real estate, regardless of value, anywhere in the United States, then you need a Living Trust. If you only have a Will, then your estate will be guaranteed to go to Probate, which will leave your heirs with a legal headache, court expense and legal bills. As of 2014 the law was changed so that a person can gift away $5,340,000.00 without inheritance tax for the 2014 Tax ememption. Proper estate planning can help you pass along your wealth and assets to your loved ones without taxation, without the necessity of court, and without the necessity of legal fees and expenses.
WHAT ADVANTAGES DOES A LIVING TRUST PROVIDE MY FAMILY?
A properly created Estate Plan, with a Living Trust may reduce or eliminate most estate taxes. A properly created estate plan will avoid probate and it's related costs. A Living Trust is relatively inexpensive, easy to set up and maintain, confidential, and allows you to keep control of your affairs and assets during your lifetime. It ensures that your written directions are enforced if you are incapacitated or pass away. A proper estate plan allows for quick distribution of assets to family beneficiaries, and avoids joint ownership problems which can be changed or canceled at any time. A properly drafted estate plan and trust protects minor children from court-imposed guardianships, protects dependents who have special needs, and even provides effective pre-nuptial protection in the case of a new marriage. A proper estate plan gives peace of mind, and brings down probate costs to zero. Good news, in 2014 the basic exclusion amount has been increased $90K, up to the current $5,340,000. The basic exclusion amount is the amount of assets that may be transferred during life or at death without federal gift or estate taxes. The annual Gift Exclusion remains at $14,000.00 per person, in addition to the taxpayer's $5,340,000.00 basic exclusion amount.
INHERITANCE GIFTS FREE OF TAX