ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

WHY SHOULD I USE A LIVING

TRUST?

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

DON'T MAKE ASSUMPTIONS

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

People often make assumptions about estate planning that are

not accurate.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

One of them is the notion that you cannot benefit from a trust if you are not extraordinarily wealthy.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

This is really not the case.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

AN EFFECTIVE ESTATE PLANNING TOOL

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

There is a type of trust that can be useful for reasonably successful people who are not among the

financial elite.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

This would be the revocable living trust.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

NO WORRIES

Another misconception that people sometimes entertain is the idea that you lose all control of

assets that you convey into a trust.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

For this reason, they shy away from the possibility of trust creation.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

In fact, you maintain full control of assets that you convey into a

revocable living trust.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

You can act as the trustee and the beneficiary, and you can revoke the trust entirely if you ever choose to

do so.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

INCAPACITY

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

A significant percentage of elders become unable to handle their own

finances at some point in time.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

Incapacity can strike as a result of various different causes, but

Alzheimer's disease is very common among the oldest old.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

When you have a living trust, you could empower a disability trustee

to manage the trust if you ever become incapacitated.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

SUCCESSORS

As we have stated, you can act as the trustee and the beneficiary while you are

alive and well.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

Ultimately, you want the assets in the trust to go to your heirs after

your passing.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

In the trust declaration, you name a successor trustee to administer the

trust after you are gone.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

You also name successor beneficiaries.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

SELECTING A TRUSTEE

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

You may naturally assume that you should name someone that you know personally to act as the trustee after you pass away.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

This is perfectly allowable, but many people will use a corporate

trustee.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

Banks and trust companies offer trust administration services, and this is an option that is available

to you.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

DISTRIBUTIONS

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

You control the nature of the distributions that will go to the beneficiaries after your death.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

If you want to, you can have the trustee distribute limited ongoing

income over an extended period of time.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

This would prevent your loved ones from spending their inheritances

too quickly.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

ASSET PROTECTION

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

While you are alive, assets in a living trust would not be protected

from creditors or litigants.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

However, after you die, the trust would become irrevocable.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

You could include a spendthrift provision, and there would be a level of asset protection for the

successor beneficiaries.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

ARE YOU READY TO TAKE ACTION?

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

If you are interested in the possibility of creating a living trust,

our firm can help.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

Give us a call or send us a message through our website if you would

like to set up a consultation.

ANNAPOLIS • MILLERSVILLE • BOWIE • WALDORF

Or visit our website www.sinclairprosserlaw.com

Nicole Livingston

Jon J. Gasior

Colleen SinclairProsser

Victor A. Lembo