Living Trust Protection

[mrichman333]

Hi, I have a question about Living Trust and how having one may protect my assets.

Here is my situation,
I am 47 and married my husband is 52. We are very fortunate in that we have no debt and own our home free and clear. We also have retirement savings a large portion that is not in an IRA and can not be transferred there because of the limits on yearly deposits.

We do NOT however have any medical insurance and the quotes we have gotten on insurance are beyond what we can pay. My fear is this, if my husband or I should become seriously ill I’m afraid we could lose our home and all our savings.

I was thinking a Living Trust could protect our assets in such a situation but am not certain and don’t know where to begin with establishing one.

Any advice would be very much appreciated,

Mary.

[Eagle]

A Living Trust is an estate planning device and will not provide asset protection.

[Joyeal Ryan]

Hi,

Thanks for sharing the information.

Here is some useful information on asset protection service.

As part of an asset protection service, certain types of trusts enable you to manage your assets.

A revocable living trust is a legal document that includes your instructions as to what will happen to your assets when you die. It is similar to a will in this regard, however, unlike a will a living trust avoids the lengthy probate process and expensive fees at death. It also prevents the court from controlling your assets if you become incapacitated. In addition, it gives you (not the courts) control of the assets you leave to others, such as your minor children or grand children.

You do not lose control of your assets when you put them into a typical living trust. You can continue to buy, sell, mortgage, etc. just like before. You can cancel the trust at any time.

[sgiindy]

The best way to protect your assets is to create the gift that never dies - An irrevocable Dynasty Trust with it's own TAX ID Number.

You and Spouse Grantor, and a close trusted advisor as trustee

It protects 100% of your assets. Here is the way to fund such a trust.

$13,000 per year per donee - you and your spouse = $26,000 per year into the Trust. If you and your spouse have assets less than $2,000,000 - you may be able to do it all at once - but you have to file IRS Form 709 - Gift Tax Return. The Max exemption over your lifetime is $1 Million Dollars for each of you and your spouse. Check with your Tax advisor.

Have your parents leave their assets to your Trust - not you.

If your Trust grows to $10,000,000 or more, guess what - you never have to pay estate taxes to the State or Uncle Sam. The Trust can last as long as a 100 Years depending on the State.

The Trust pays its own Income Taxes (IRS Form 1041)

Oh by the way - why not sell your house to the Trust. Slowly transfer all your assets into the trust until the trust owns everything you have. It is your Trust managed by a trusted advisor as trustee. Let the Trust pay for your living expenses. You live in the house owned by the Trust. You are just a Tenant in the Trust owned house.

Once you have no assets, you can not lose them to creditors. You are personally destitute and broke. However, the Trust assists in all your needs, including education for your children. Let the Trust own or lease your cars.

Just GOOGLE - Dynasty Trusts - the Gift that keeps on Giving

sgiindy

[mrichman333]

The best way to protect your assets is to create the gift that never dies - An irrevocable Dynasty Trust with it's own TAX ID Number.

You and Spouse Grantor, and a close trusted advisor as trustee

It protects 100% of your assets. Here is the way to fund such a trust.

$13,000 per year per donee - you and your spouse = $26,000 per year into the Trust. If you and your spouse have assets less than $2,000,000 - you may be able to do it all at once - but you have to file IRS Form 709 - Gift Tax Return. The Max exemption over your lifetime is $1 Million Dollars for each of you and your spouse. Check with your Tax advisor.

Have your parents leave their assets to your Trust - not you.

If your Trust grows to $10,000,000 or more, guess what - you never have to pay estate taxes to the State or Uncle Sam. The Trust can last as long as a 100 Years depending on the State.

The Trust pays its own Income Taxes (IRS Form 1041)

Oh by the way - why not sell your house to the Trust. Slowly transfer all your assets into the trust until the trust owns everything you have. It is your Trust managed by a trusted advisor as trustee. Let the Trust pay for your living expenses. You live in the house owned by the Trust. You are just a Tenant in the Trust owned house.

Once you have no assets, you can not lose them to creditors. You are personally destitute and broke. However, the Trust assists in all your needs, including education for your children. Let the Trust own or lease your cars.

Just GOOGLE - Dynasty Trusts - the Gift that keeps on Giving

sgiindy

Thanks for the info. The only assets we have are our home witch is free and clear of any debt and some money in mutual funds we are saving for retirement. We have no debt, we carry a 1 million unbrella policy on our home and the max on our autos. I just worry thatif a Medical Catastrophe should happen we will lose our home.

Can my husban or I be the trustee?

Thanks

[sgiindy]

Unfortunately, you and your spouse cannot be the Trustee but you still have the power to hire and fire the Trustee.

I hear where you are coming from for a medical catastrophe with no health insurance. You may need to explore health insurance needs for a catastrophic event.

Politics aside, my BCBS health insurance went up 20% after Obama's Health plan was passed. So much for Obamacare.

Sorry, I can't be of further help. But read up on everything on Trusts - it is good to have one anyway - even if it is revocable where you and your spouse are the Trustees. Those Trusts will NOT protect your assets other than from probate.

sgiindy