Who Should Not Use a Living Trust

Living Trusts are used to help folks avoid probate and guardianship.  They are also used to shelter assets from lawsuits and preserve the assets for your children.  But Living Trusts are not for everyone.  Here is one possible analysis to help you determine if a Living Trust would benefit you or your family.  This is not a complete analysis so consider it a starting point only.

First, do you own any real estate, such as land or homes?  If yes, a living trust can almost always benefit you.  If not, keep reading.

Do you own bank accounts or investment accounts totally more than $25,000 but not owned by your retirement plans?  If yes, then a Living Trust can almost always benefit you.  If not, keep reading.

Do you own any LLCs, partnerships or corporations?  If yes, then a Living Trust can almost always benefit you.  If not, keep reading.

Do you own any oil or gas rights?  If yes, then a Living Trust can almost always benefit you.  If not, keep reading.

Do you own any intellectual property rights such as copyrights, trademarks or trade secrets?  If yes, then a Living Trust can almost always benefit you.  If not, keep reading.

Do you have any money owed to you or an inheritance that is imminent or judgments that may be owed to you?  If yes, then a Living Trust can almost always benefit you.  If not, keep reading.

While there are other assets that can trigger a probate or guardianship, if you have read to this point, a Living Trust may not benefit you.  For those that do not benefit from that type of planning, you will still benefit from some planning such as preparing (1) a will, (2) financial powers of attorney and (3) advance directives for health care.

A will is useful to name permanent guardians for minor children and to appoint a personal representative to handle any loose ends that may be associated with your death.

The financial power of attorney is useful to appoint a person to manage your financial affairs if you are unable due to a illness.

Advance directives or health care powers of attorney are useful to appoint someone to make health care choices for you if you are unable.

These three documents are considered the most basic types of planning.  You’re not required to prepare any documents but it can save your family time and money.  In particular, if you have no assets, the financial powers of attorney and the advanced directives may help you avoid the appointment of a guardian or conservator.  By appointing someone in advance before there is an illness, you avoid having the court appoint someone for you.

If you have questions about preparing Living Trusts Las Vegas, wills, powers of attorney or advance directives, you can schedule a no-obligation free appointment here.

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