(MENAFNEditorial)
FOR IMMEDIATE RELEASE
Contact: Hope Katz Gibbs founder
Inkandescent Public Relations www.inkandescentpr.com
email: hope@inkandescentpr.com
cell: 703-346–6975
Washington DC January 23 2015 — “Once you embark on the estate planning journey the question of whether to include a Revocable Living Trust in your plan is inevitable” insists estate planning attorney Lisa Hughes a long-time partner at the Fairfax Virginia based law firm Yates Campbell & Hoeg LLP.
“Begin by learning the purpose of this tool and then determine if it makes sense for your plan” suggests Hughes in the Estate Planning column of this month’s issue of BeInkandescent magazine.
Scroll down for our Q&A.
Question: What is a Revocable Living Trust?
Lisa Hughes: In a nutshell a Revocable Living Trust (RLT) is a stand-alone document (separate from the Will and the Power of Attorney) that creates a trust entity in which the Settlor (the person creating the RLT) benefits during the Settlor’s lifetime” Hughes explains. “And the trust continues after the Settlor’s death for the benefit of the Settlor’s other beneficiaries.”
Question: How does a Revocable Living Trust work?
Lisa Hughes: A trust instrument can be likened to a box with an upper and lower chamber as illustrated in the box on the right.
Question: Does it makes sense for you to incorporate a Revocable Living Trust into your estate plan?
Lisa Hughes: The answer to this question is part science and part art: The answer is “It depends.” To find out if a RLT is right for you answer the following questions. There are no “right” answers — only answers that are right for you!
• Is it important to fund the trust during the Settlor’s lifetime in order to avoid probate in the state in which the Settlor lives and/or in states where the Settlor owns real estate such as a vacation home?
• Is it important to obtain privacy over the disposition of your property?
• Is it important to allow quick access to your assets in the event of your death or disability?
Question: What concerns generally do not warrant the use of a RLT?
Lisa Hughes: A RLT does not take assets out of reach of the Settlor’s creditors. Since the Settlor is the creator of the trust he/she remains the beneficiary of the trust for the rest of his or her lifetime and retains the right to revoke or amend the RLT. In essence the RLTserves as the Settlor’s “alter ego” for asset protection purposes. Therefore the assets contributed to the RLT do not enjoy any special protection when Settlors have creditor problems during their life or when their probate estate is insufficient to pay their debts or expenses after they die.
Note that while asset protection planning with trusts exists in most states the tools used for such planning differ markedly from the RLTs discussed here.
Do you have additional questions ideas other thoughts?
Read Lisa Hughes’ Estate Planning column in the monthly business magazine BeInkandescent.
To interview Hughes contact Hope Katz Gibbs.
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