COMMON QUESTIONS REGARDING LIVING TRUSTS
March 25, 2016
If you're considering a living trust or revocable living trust, review these common questions and answers to help you better understand how they work and whether or not it's right for you:
CAN I BE MY OWN TRUSTEE?
You can. As long as you're competent enough and can manage your finances effectively, you can serve as your own trustee. Most people opt for this and if you're married, your spouse can be your co-trustee.
CAN I ACCESS ASSETS AFTER THEY'RE PUT IN THE TRUST?
Yes, you can. As long as you're the trustee, you are able to manage your assets as you please. That means saving, spending, giving them away or investing them. All you're doing when you set up a trust is transferring ownership from yourself to the trustee in your revocable living trust.
WHEN I MOVE, DO I HAVE TO CHANGE MY TRUST?
A living trust is valid in any state you move to - regardless of where you originally made it.
CAN I USE TRUSTEES FROM OTHER STATES?
Yes. Since trusts are valid in all 50 states, you can elect trustees from anywhere in the United States.
DO I NEED TO HAVE A LARGE ESTATE TO HAVE A LIVING TRUST?
No. This is a common misconception. You don't have to be rich or even close to rich. While an estate saves itself from taxes using a trust, plenty of individuals with a small estate have created a revocable living trust. Generally any estate over $150,000 can benefit from a trust. Any homeowner should have their home in a trust.