What is a Living Trust for Veterans?
A Living Trust for a veteran is also known as an “Intervivos Trust” or “Revocable Trust.” A Living Trust is an estate plan that manages your assets during your lifetime and efficiently passes your estate to your chosen beneficiaries after your death.
Why would veterans need a Living Trust?
As a veteran, to control and protect your estate, now and after your death. By law, no one can sign on your behalf. Therefore, if you acquire a disability, your name can only be signed using a previously executed Financial Power of Attorney. After your death, your name can only be signed by an Executor authorized by the Probate Court.
Your Financial Power of Attorney is revoked by operation of law at your death. Consequently, if you have assets in your name after your death, such as title to real estate or financial institution accounts, a Probate estate must be opened so a judge can name an executor to administer your estate.
A Last Will and Testament does not avoid Probate. A Will is your wish for an executor who receives your property after your death.
What legal documents are in a Living Trust?
A complete Living Trust estate plan should include a Trust, a Last Will and Testament ( often referred to as a Pour Over Will, which acts as a safety net for any assets not titled in your name at your death), a Financial Power of Attorney, and a Health Care Power of Attorney.
What is Probate?
Probate is a division of the court system that handles the estates of every person who is either unable to handle their affairs because of a physical or mental disability or who has died. It is designed to protect your assets during your lifetime and ensure the proper administration and distribution of your estate upon your death.
What is wrong with Probate?
It is costly and time-consuming, and the high volume of cases in the system makes it inefficient, burdening families. The Probate system was not designed to handle the estates of every person. If you have not made other provisions and you acquire a disability, your assets will be subject to the control of the Probate court.
Your family must care for you under the direction of the court system. If you die with assets in your name, and the total collective value of your assets exceeds $150,000, your entire estate is subject to the Probate process.
Probate requires a minimum six-month claims period, and the entire process can take an average of 18 months or more to complete
How can Probate be avoided?
With a properly drafted, executed, and funded Living Trust.
How does a Living Trust avoid Probate?
All assets in your name are retitled to the name of your Living Trust, are not subject to probate, and are administered privately and efficiently by your Successor Trustee, often one of your family members or trusted friend, who can also be a beneficiary of the Living Trust. The process could take only weeks or as long as it takes to transfer your assets to your beneficiaries.
What legal documents for veterans are in a Living Trust?
A complete Living Trust estate plan should include a Trust, a Last Will and Testament ( often referred to as a Pour Over Will, which acts as a safety net for any assets not titled in your name at your death), a Financial Power of Attorney, and a Health Care Power of Attorney. Your veteran discount will apply to all legal documents.
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