Living Trust Will
Let’s talk about the term "living trust will". It is not really a proper legal term. However, a lot of people use the term when they are first investigating a living trust. People are used to having a will distribute property after the death of the person making out the will. A trust also distributes property after a person’s death, which can lead to the confusion and the use of the term "living trust will".
A living trust and a will are separate and distinct, although a living trust can be thought of as taking the place of a standard will. So, when someone asks me for a "living trust will", I’m not sure what they really want.We are talking about two distinct legal documents—a living trust and a will. When a living trust is written, it will always have a will called a "pour over will" to go with it. A pour over will is a safeguard mechanism for a living trust.
There are different terms for living trusts—"living revocable trust" or "revocable living trusts". The term " revocable" is important because the trusts can always be revoked. The ability to change his or her mind and repeal the trust is the advantage of a revocable living trust. Heirs will receive a larger inheritance, avoid probate and reduce estate taxes by using living trusts. In order to prevent a probate proceeding, a trust must be correctly set up and managed.
Most trusts do not prevent heirs from going through probate. Some in the legal community are coming out in opposition to living trusts since so many clients are not really getting the probate protection they thought they were getting. The dilemma is not caused by the trust. It’s the attorneys who are failing to educate their clients. In order to avoid probate, clients need to be educated on how to "use" their living trust.
If the living trust does not work as it should, assets of the deceased will need to be probated. Going through a long legal process at the probate court will be necessary at this point. When there is a will, the probate court will use it to help them make decisions throughout the probate proceedings. An “intestate” proceeding is what takes place when there is no will. When someone dies without a will, he or she is said to be "intestate".
A pour over will should be drawn in conjunction with a living revocable trust. The probate courts can use the pour over will to direct them through the process if probate becomes necessary. The pour over will won’t be needed if the trust works properly and actually avoids probate.
A standard will distributes the property outright, unlike the pour over will which does not. A pour over will instructs the court to “pour over” all of the assets into the living revocable trust and distribute the assets as stated in the living trust. Revocable living trusts and pour over wills are discussed in detail in Lee R. Phillips’ new book, Guaranteed Millionaire. Get a FREE DVD, "Using the Law to Make Money and Protect Your Assets" by clicking the Free DVD link.
