Living Trust

Living Trust

This Living Trust is designed so that it can be used by a husband/wife couple or by a single person. 

 

Funding a Living Trust:  A living trust avoids the need to probate the assets of the trust.  If there are no assets in the trust it is not funded.  Assets not placed in the trust may need to be probated.  Especially your home.  If your home is not deeded over to the living trust it will have to be probated (unless a survivor who is on the deed is still living after you die). 

 

Medicaid Horrors:  Do not put your home into a living trust if you may end up in a nursing home within five (5) years. Why?  Because it will affect your Medicaid benefits.  Any transfer of property within 5 years of going into a nursing home will be set aside for benefit purposes and your home exemption will be lost.  A lot of lawyers prepare a deed to the living trust, but don't file it until the home owner dies.  Of course, there are potential tax problems when you don't file a deed because you have to pay a transfer fee to the County Register of Deeds from the day the deed is signed, plus penalties and interest.  But, that doesn't happen in every county, and it may be cheaper to do it that way than lose your home to pay for nursing home care.

 

Attorney help:  If you would like help in filling out the living trust form e-mail David Justian, Attorney at Law, click the 'contact us' e-mail address, freelaw@lawthing.com at the left side of this screen and send him a message with your name and telephone number and times when he can call you.  The legal fee for the service is $75.00.