Trust-Based Estate Planning
If you create a Trust-based Estate Plan (as opposed to a Will-based plan) you will likely avoid thousands of dollars in Probate expenses, prevent multi-jurisdiction real-estate Probate problems, mitigate government interference, keep your information private, prevent delays in asset distribution, take advantage of beneficiary asset protection, and reduce family conflict.
A Trust-based Estate Plan helps you
- Manage investment accounts
- Implement business succession plans
- Inventory assets and debts
- Value assets
- Pay estate debts
- File fiduciary and estate tax returns
- Retitle and distribute assets
Kansas Law Group can help you create a customized Trust-based Estate Plan that supports your goals.
The Most Common Type of Trust is a Revocable Living Trust
Things You Should Know About a Revocable Living Trust
Probate Avoidance
- Property that is passed through a Will must be directed by Court order through kansas's Probate process: proves the validity of the Will, appoints a Personal Representative, and implements the Will’s directives. Probate can be protracted and expensive.
- Probate requires mandatory notification to all beneficiaries of the Will and to those who would inherit if there were no Will. This process allows those not named in a Will the opportunity to challenge the validity of the Will.
- If you own real estate in more than one state, your estate must probate property in each state where property is owned. However, you can avoid multiple state probates if all your properties are placed into a Trust.
- A Trust does not require court intervention. Your Trust administered entirely by the Trustee you name. Your Trust is your detailed set of instructions regarding how your estate is to be governed.
- A Trust keeps your estate affairs private because it is not probated. When a Will is probated, all information filed with the Court is public record including the inventory of all assets and their values.
- A Trust allows for efficient distribution of your assets. According to the American Bar Association, the average Probate takes 9 months. However, if difficulties arise, some Probates last years.
- A Trust designed by Kansas Law Group avoids the mandatory probate notification process and can reduce unnecessary conflict.
Remarriage Protections
- If you die before your spouse, there is the possibility that the surviving spouse will remarry. Most Estate Plans provide for a surviving spouse and then for children. However, most Estate Plans do not prevent the surviving spouse from changing the plan to favor the new spouse and new children.
- Every estate planning attorney has stories of a surviving spouse remarrying disinheriting the original heirs. A properly designed Trust-based Estate Plan includes safeguards to ensure the original plan is honored.
Asset Protection
- Many Estate Plans leave inheritances exposed. If a beneficiary gets sued or gets divorced, the inheritance you intended for a child may instead go to a creditor or an ex-spouse. Kansas Law Group drafts plans that protect each of your beneficiaries from creditors, predators, and divorce.
- A Trust-based plan has the capability to protect assets for whomever you name as a beneficary. This is accomplished by building sub-trusts into your estate planning Trust.
- Each Trust can be structured to leave assets to beneficiaries in a protected sub-trust with as many or as few restrictions as you deem appropriate.
Tax Advantages
Trust-based estate planning provides the most flexible options to reduce or eliminate estate tax. Kansas law group will counsel with you to choose the appropriate provisions for your circumstances.
Trustmaker Disability
If you are turning 65 today, you have nearly a 70% chance of needing some type of Long Term Care services and supports in your remaining years. (U.S. Department of Health and Human Services). If you are no longer able to manage your own finances, it is essential to have disability provisions drafted into your Trust.
- Provide for aging parents.
- Instruct your Trustee how to care for you and your family.
- Instruct your Trustee how to manage your assets.
- Plan for proper management of your business.
- Avoid the need for Court imposed conservatorship.
Beneficiary’s Disability
- Qualify for Medicaid and other assistance quickly
- Preserve the beneficiary’s inheritance
- Supplement the needs of your beneficiary without loss of government benefits
- Avoid the need for Court imposed conservatorship
Incompetent Beneficiaries
When you leave assets to a mature beneficiary, he or she may predecease you and those assets pass to a child too young to manage them. You should determine the age that is appropriate for a beneficiary to manage their inherited assets.
Young Beneficiaries
When you leave assets to a mature beneficiary, he or she may predecease you and those assets pass to a child too young to manage them. You should determine the age that is appropriate for a beneficiary to manage their inherited assets.
Other Types of Trusts
To hold large life insurance policies for estate tax purposes.
These are generally used to protect assets for the next generation. Elder Law / Medicaid Planning
Make use of laws of certain states such as Nevada, Wyoming, and South Dakota to achieve asset protection while retaining rights to principal.
Make use of laws of foreign jurisdictions such as the Cook Islands, Nevis, and Belize to achieve asset protection while retaining rights to principal.
Trusts to maintain and grow family assets for multiple generations.
These are designed to assist those receiving government aid without disqualifying them from the aid they depend upon. Special Needs Trust Planning
Case #1
Bob just finished probating his mother’s will. Everything went smoothly, but it still took nine months to complete and cost him thousands of dollars. Bob wants to do better for his children.
Bob went to Kansas Law Group. Bob now has a trust-based estate plan. As soon as he dies, his trustee will be able to wrap up his affairs, pay his expenses, and then leave the rest in asset-protected trusts for his children. His trust has good instructions, so his trustee knows exactly what to do. His trustee will be able to act immediately, without having to pay a probate attorney and wait for court approvals.
Case #2
Bob’s son, Zack, and Bob’s daughter, Jennifer, are the beneficiaries of separate share trusts created for them by Bob’s trust when he died. Zack and Jennifer are each other’s co-trustees.
Zack has done exactly what his father told him to do. He has left the assets in his trust alone except for emergencies. Now he sees why that was important.
Zack got sued over a business deal gone bad. By the end of the trial, Zack’s attorney’s fees were in excess of $30,000. Zack has been able to pay all of his attorney fees from the trust. However, when the assets of the trust were discussed to satisfy the judgment, Zack’s sister (co-trustee) would not release any trust assets to pay the judgment. Zack is grateful to Bob for setting up a trust to protect the home and the other assets left for Zack and his children.
Safeguard your family's future through a tailored Estate Plan
Schedule a free consultation with one of our experienced Estate Planning Attorneys
