9 Revocable Living Trust Mistakes

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One of the most talked about areas of estate planning is the concept of individuals, couples and families using a revocable living trust program to avoid the court and attorney involved probate process that is necessary when someone dies with certain assets titled in their name.
While it can be a beautiful thing when the living trust program eases the estate settlement after the Settlor of the trust dies, mistakes can be made that make matters more difficult. And when mistakes are made, things may not work out as planned.
Mistakes made when taking advantage of a revocable living trust program include failing to fund the trust, having the trust instrument poorly written, thinking revocable living trust assets are protected from nursing homes and creditors, failing to understand the relationship between last wills, trusts, and beneficiary designation items, and failing to keep your trust updated when necessary.
This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicating with Rabalais Estate Planning, LLC, through this site does not form an attorney/client relationship.
Paul Rabalais
Estate Planning Attorney

Опубликовано:

15 сен 2020

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Комментарии : 334

@opensourceror 2 года назад

9 Mistakes Not to Make with a Revocable Living Trust 1. Failing to Fund the Trust 2. Having a poorly written Trust 3. Mistakenly thinking that Revocable Living Trust assets aren't used for Nursing home expenses 4. Mistakenly thinking that Revocable Living Trust protects you from liability/creditors 5. Not having ancillary documents in support of Trust (power of attorney, durable power of attorney, successor trustee, pour over will) 6. Not realizing your Trust doesn't control where your IRA, Life Insurance, Annuities go when you die 7. Naming your Trust as the beneficiary of your IRA when you don't need to 8. Failing to update your Trust when something changes 9. Failing to subscribe to this channel

@HB-yq8gy 2 года назад

Wow, some good points. We got a pour-over will into a Testamentary Trust attorney who said funding trust was not needed? NJ probate is very efficient not like some other states.

@reberyan7879 2 года назад

How do I update trust when I have already paid attorney and he didn’t add my car or pension

@HB-yq8gy 2 года назад

@@reberyan7879 I never heard why a car would be in a trust may be some very valuable car. I have an NJ pension only your spouse gets half the pension when she dies finished like Social Security. I'm not sure about kids under 26 y/o far as pension benefits depend on your state.

@theplainenglishattorney 2 года назад

@@reberyan7879 It sounds like it's a trust "funding" issue as opposed to the actual language in the trust document to get your vehicle in your trust and to set up the beneficiaries of your pension the right way. I'm not sure what state or jurisdiction you are in, but it might be worth a call to your attorney to see if in fact anything needs to be changed in your documents.

@23695angel 2 года назад

Thanks for the summary. 😀

@ipemathai1240 3 года назад

I just started watch your videos ,it is very timely information for me and I appreciate it. Look forward for seeing more of it. Ipe.

@LuC1800 3 года назад

Thank you! I’m binge watching your videos!❤️❤️❤️❤️

@kosmogoddess8973 2 года назад

Thank you very much for creating this video. I needed it as I am having these conversations with my family now.

@DocMatthews0311 2 года назад

I have been tuned in to quite a few of your videos. Very informative. 🙏🏽

@michaelday1700 3 дня назад

This needs to be taught in schools . Thanks for all of the great information.

@dialdude Год назад

Awesome info. I am about to setup a living trust and this info is exactly what I needed to know. Thank you.

@brianweaver8024 2 года назад

Great information! Looking forward to the next video!

@randymilmeister-realtorprobate Год назад

great video. i love your commitment to educating our friends and family...doing all you can to help people and save families from aggravation, expensive costs, and time.

@IlonaJosiane 2 месяца назад

Thank you a lot for this video. This is very interesting and informative. Keep posting like those amazing videos, this is awesome.

@AshAragam 2 года назад

Love #9 :) Thanks for a great video Paul!

@sharongonzales2495 2 года назад

Thank you so much. You’re wonderful for helping us!

@JK-lo2bb Год назад

This was super helpful. Thank you for the concise information

@mingz8664 2 года назад

Thank you sir I can understand almost everything when you explain it....

@estherzepeda5479 Год назад

Love your videos 😃and of course no 9 is the most important mistake 😃thank you for the advice have a blessed day ❤

@paulsrimuangboon7325 Год назад

Thank you, the video was very helpful and the comments provided real insights.

@user-cg6wl4ih7n 10 месяцев назад

really simple , informative , and practical THANKS

@sgchanda Год назад

This was such a helpful video thank you!

@abelpropertyenhancementser7198 Год назад

Yes, thankyou for getting this out…

@jenniferolson7102 6 месяцев назад

Thank you SO much! This has been so helpful

@Parismiami2012 3 года назад

Awesome information! Thank you!

@johncruz6240 Год назад

Thank you for your educational and informative channel. New subscriber 🙌

@livingwithrob 9 месяцев назад

Love that 9th tip. Took me off guard. I laughed out loud. What a great closing. Loved it.😍

@jamieworleyafepiinc.3266 3 года назад

LOVE mistake #9! Mistake avoided!

@saadelmoutawakel3430 Месяц назад

I gave you a thumb up subscribed and forwarded your outstanding videos. Thank you for your training

@hump1953 3 года назад

Great presentation! Thanks...

@simplip4934 Год назад

Thank you so much for doing a good deed which really what you are doing is giving back to communities for free! As always, what's good with tons of knowledge/power and not sharing & using power to make a difference to the world we live in? Your sharing of your insights & knowledge is greatly appreciated!

@ZiginfusEntertainment 3 года назад

Great information. I learned from it. Didn't make mistake #9.

@dalgguitars 4 месяца назад

Thank you for this video!

@manny7886 2 года назад

OK, sir, this is the third video that I watch from your channel since yesterday. I won't make the # 9 mistake. So here you go I'm your new subscriber. BTW my mother-in-law passed away last September (my father-in-law passed away in 2000). My wife is in the middle of processing the transfer of the living trust that they left (2/3 ownership of the house) to her name. We were so glad that her late parents had a living trust (written about 25 years ago) transferring their ownership to her. Just sharing our experience on living trust.

@rickbrightwell 2 года назад

Nice buildup of suspense on #9, LOL. Had me on the edge of my seat.

@rigonan73 3 года назад

You got me there. Mistake #9.

@basharalshareef4088 2 года назад

You are Ammmmaaaaazing ! Thank you👍👍👍👍👍

@SB_DiLLAGAF 11 месяцев назад

Very informative video thank you for these tips and advice.

@californiadreaming6560 3 года назад

Thank you from Central Florida

@americasestateplanninglawy1946 3 года назад

Sure thing Central FL! 😎

@lisainpalmdesert 3 года назад

Great content!

@jeanroeder5534 3 года назад

I transfer what I can to my grandchildren now. In the past I had it set up that they would inherit funds and then I realized it is now that they can use the help.

@dennykeaton9701 2 года назад

Agreed

@jesse957 2 года назад

Awesome Grandfather!

@raymondcaylor6292 Год назад

Absolutely. You can show them how to spend and invest. You can give or receive tax free as long as it's not more than 15K a year.

@CapeRN Год назад

So true! I helped a son buy his first house. It means a lot more now and truly can be life changing !

@streaming5332 Год назад

@@jesse957 not awesome, leave the money to his own children. Don't skip generations.

@jeanroeder5534 3 года назад

I review all my financial affairs at the beginning of each year. I also go over those affairs and my final wishes with my children at that time so they are well informed and they each understand my final plans

@streaming5332 Год назад

You're amazing..!

@DementiaSurvivor 21 день назад

God bless you for doing what you do

@arnoldhuynh7473 Год назад

Thank you for the information

@theresaholmes3700 Год назад

It's a great idea to include updates and changes in the contract ,

@tubro007 Год назад

Better than some others i've seen.

@stanleybujak5260 15 дней назад

Thanks, great video. Please make another one; the "Best way to protect the assets from Nursing homes"

@thebay1642 2 года назад

Great content! Thank you for your insights on mistakes in preparing a living trust.. quick question, I hear and have read that there are attorneys that say don’t put your real estate in a living trust?

@yulanluo7328 2 года назад

Thanks for the sharing. I liked and subscribed, at least the 9th mistake nit applicable for me 🤭🤭🤭 I will digest the other 8 mistakes, since I just set up my family trust.

@alyciagordon3447 Год назад

Thanks so much for this video!! A living trust does not necessitate any probate procedures. When the Trust Deed's events, such as death occur, the Trustee is instantly empowered to administer the deceased's assets.i am Currently living smart and frugal with my money. Saving and investing lifestyle in the financial market made it possible for me this early even till now earn monthly through passive income.

@charlesnielson6544 3 года назад

Thank you for summarizing many issues and or mistakes associated with establishing either joint or individual revocable living trusts. I have stumbled through many of these issues and others.... in my quest for the right combination of vehicles to use to satisfy my personal and unique concerns. If anyone is detail oriented and able to reason thru these various situations, there comes a point where one needs to take some action and decide what vehicles to put in place and do the follow thru necessary. So having said that how does one go about brining all of the concerns you have raised along with ones they have you did not cover and taking appropriate action and get it done! It will never be perfect but without action it will never be done. So is there a master checklist that in theory will bring one to that point of taking action?

@dkgrace6743 2 года назад

Awesome, thank you.

@theresaholmes3700 Год назад

Great info, also get a trust before demensia sets in .

@iandaniel2153 2 года назад

Loved no 9!

@zacharycarr1879 2 года назад

great show

@susanbradley5685 3 года назад

Thank you! I took tons of notes! My Dad created a RLT in 2012 and thought he'd done a great thing. After the last 3 years in assisted living, he caught CV-19 from staff and died in Oct 2020...leaving me with figuring out the labyrinth of RLT he left behind. He was never great with details so "funding the Trust" was the biggest kink to work out. I now want to be sure I AVOID leaving those headaches to my daughter when my time comes. Your videos are now on my "to do" list!

@ruthtorphy2204 3 года назад

This Jan we had same issues. Nothing was actually placed in the trust.

@midnight.amethyst 2 года назад

rip to your Dad💙

@paulseverson2307 Год назад

@@ruthtorphy2204 I'm having issues now with one of my mom's accounts that wasn't placed into the Trust. The institution that holds it seems unable to understand the Pour Over Will document that is part of her trust. This allows whatever was not placed into the trust in the trust after death with a small account affidavit. Somehow they are still having their lawyers disect it or they are incompetent.

@motowngirl5891 Год назад

Your better off not owning anything, it’s costs money and you don’t know if the law will change

@mienkomombo8543 2 года назад

Good stuff!

@user-oz2ks5xo7q 2 месяца назад

Good information

@Hidden_Destinations 3 месяца назад

Great vid! Thanks.

@PERRYS_PROPS 3 года назад

lol! loved the finale

@cind123able 2 года назад

I will not make mistake number nine. Thanks so much

@KevinBolkovatz Год назад

Number 9...Awesome!

@dwrighte1 Год назад

Thank you for this video. It was great and I routinely implement these ideas into practice. I would appreciate it if you were to do one on Medicare and Estate Planning. Occasionally, I get clients or prospects that approach me about this issue.

@sicario_paintball 4 месяца назад

#9 was my favorite

@daveb2280 8 месяцев назад

Great advice. I would only add that one needs to find an expert attorney who drafts up the documents. I lucked out and had a very experienced attorney who bounced things off of me that I hadn't thought about. An amazing guy. I am grateful for his work.

@user-ou9ws7yi8i 3 месяца назад

Please if you would share your amazing guy

@ycnirp. 2 года назад

Thank you so much

@chicchacchula 3 года назад

Mistake #7 is spot on, and in my opinion you are exactly correct and gave an ethical and honest description of when it makes or does not make sense. Too many people name their trust as the beneficiary of their IRAs when there is no need to do so. Unfortunately, many times they do that because their attorney recommended they do it....especially when the attorney has convinced the clients to list the attorney as co-trustee in the document and will be collecting his/her fees down the road. And of course that fee is typically based on the size of the trust, so some attorneys want to direct any and all assets to the trust to increase their future fees. I have seen this many times in practice and it’s “funny” how it occurs with the same attorneys over and over.

@alviebarbaza2005 2 года назад

Thanks ouattorney did just that, so we need to change that by amendment or reinstatement?

@jamieworleyafepiinc.3266 3 года назад

Great video! Regarding Medicaid, they would need an Irrevocable Living Trust before the clock starts ticking. They'll need a certain level of assets in that ILT for a specific amount of time before Medicaid can not hold it against them. Again, great video!

@theplainenglishattorney 2 года назад

Agree 100%. When working with my clients and discussing Medicaid planning with irrevocable trusts, the threshold question is whether or not they want to give up control of those assets to another trustee in order to shelter their assets. Most aren't willing until they see an actual medical issue on the horizon.

@louiesaucke521 2 года назад

As a product dependent on an irrevocable trust, I can honestly say that leaving a family member as an executor is probably not a very good thing. The fact that when the trust was designed, it was due to the fact that Medicaid and prenuptials were not very trusting so my parents and lawyer thought the siblings would be the best executors for my "Well-Being" after they had passed on. Was this a good decision? No! Turned out you can only have one executor and after the dependent of the trust has deceased, the remainder of the trust goes to the three trustees which asked to date, the trust is now on its second executor and as the beneficiary, I am concerned for my future.

@louiesaucke521 2 года назад

@@RealJamieWorley Thank you for your input. Unfortunately my dynamic is under the "not so good".

@alvenatgolden1781 2 года назад

@@louiesaucke521 so you had 3 or 4 people listed as trustee and as 1 died the other took over?

@splendid_is_she1614 7 месяцев назад

@@theplainenglishattorneyDon't know what state you are in, your trust automatically turns into a IRREVOCABLE TRUST, if OR once you BECOME, INCAPACITATED OR DEATH! I just went through this with my dad, who is Incapacitated! Yet, while you are the GRANTOR/CREATOR/TRUSTOR you can UPDATE, MODIFY as often as you want to. Yet, if a real estate property, still allows you to claim interest in it, yes keep it simple! Yet, if you are not still able to claim that interest. That home should have a second person on that deed along with yourself, for cheaper property tax, benefiting purposes.

@bernicewahine9625 Год назад

RLT is great. Walked into bank with copy of trust, parent's death certificates, my id. 5 minutes later, "what would you like to do with your account sir".

@theresaholmes3700 Год назад

This is great

@Bmywudt2 2 года назад

You are awesome!

@GaiaCarney 2 года назад

Thank you, Paul, for creating & sharing this informative video about Living Trusts 🕊 your channel is a wealth of helpful information ☮️

@dosiodosev740 Год назад

Step #9 cleaver, subscribed

@jasonfrank5579 2 года назад

thanks dude!

@americasestateplanninglawy1946 2 года назад

No problem!

@lpandy21 2 года назад

thank you.

@dennmillsch 8 месяцев назад

Thanks for the video, but Mistake #9, I wasn't expecting that!! Hahaha

@billt8504 2 года назад

Thank you for the video. 75% of this was either common sense or just not applicable. But your discussion of IRA's and Trusts was very helpful. What you said makes perfect sense (might be common sense for others) but I just never thought about it. That's a mistake I might have made but won't now, thanks to you.

@pankajpatel4434 3 года назад

Just now corrected the 9th one ! HARI NAM !

@hughvfam 2 года назад

You are so cute on mistake #9 !

@plaarjharnwongs2696 6 месяцев назад

Thank you

@theresaholmes3700 Год назад

What the trust doesnt own can fall into probate . This is why its great as people age and dont earn as much money to have updates & changes included in the contract signed by your attorney , it's better also to have a firm so that your atty goes into a nursing home etc there is backup .

@barbsinclair7352 Год назад

I just met with an estate planning lawyer last week and went in assuming I'd create a Trust (side note, if pay a few thousand for them to write a trust the language better damn well be correct) anyway, htey mentioned something that I hadn't heard of before for a home, a Beneficiary of Deed, instead of creating a trust, I left totally confused and the pros and cons of a BOD vs. a Trust, other than the fact it cost double to write a trust.

@Les988 3 года назад

Thank you for these videos. Do you have a video discussing assets that go through probate and those that do not? For example does an IRA, Roth IRA, life insurance and other similar accounts that have a beneficiary go through probate?

@tom_olofsson 3 года назад

Not all life insurance benefits and IRA assets avoid probate. If you outlive your named beneficiaries then those assets can end up in probate court.

@joannajensen2221 2 года назад

Les; if you name a beneficiary and draft your trust well; there shouldnt need a probate. a trust is what the settlor wants or the person who creates the trust

@lorirowell8003 Год назад

They are countable assets towards total Estate value, but are distributed directly ( by pass probate) to the named beneficiary on the IRA/ life insurance account (not via a will or trust )

@markoconnell804 2 года назад

You missed a few mistakes. It dose not surprise me but still you did a good job on the ones you covered. I am not an attorney.

@cynthiamarinas8035 3 года назад

Do you know of an estate attorney here in Sacramento California that you can recommend. I need to update my living trust. Thanks.

@nczhang2011 3 года назад

Thank you for all the videos, I learned so much. question for bank accounts that where you can setup Transfer on Death, do those accounts still need to be part of trust or Will? Thanks

@lorirowell8003 Год назад

Yes

@alexi2460 Год назад

Need a tutorial or basic procedure on up dating my schedule 1,2 etc

@lilyb1011 3 года назад

Hi lPaul- I hear you - say you are in Louisiana- however- I amin London and I am very o pressed with your knowledge - I would very much appreciate Nd like to have a living trust properly written. Can you help by using a template? I am nearing old age! Needs to sort out my affairs. Many thanks!

@herbzinn3131 2 года назад

Nice summary. Have you done up a video on taxation of the irrevocable trust when settlor/grantor dies, trust assets are distributed and the Successor Trustee elects to shut the trust down?

@waynechien-vovietchongmy9724 5 месяцев назад

How do you pay tax...when your not A US citizen or a district of Columbia resident....? 😂😂

@leelewis5068 Год назад

Thank you for the public service announcement!

@EZGoin1 2 года назад

Paul, can I set up a Living Trust for a simple estate?

@BigCityCBGs 2 года назад

How much should I expect to pay to have a RLT done Thanks

@toriless 2 года назад

Yep, it need to be irrevocable trust to be isolated from the government considering it as your assets.

@mohamedelbayar6564 2 года назад

you got it #9 🙂

@rebeccaramirez- Год назад

love the #9 tip lol

@mariac9502 8 месяцев назад

I have my IRA and bank accts. set up with POD. is that sufficient?

@choctaw-chiefandreel.7844 Год назад

Thanks

@Tommyalpaca 2 года назад

So does an irrevocable living trust protect your assets against debt?

@alexsteven.m6414 11 месяцев назад

Given the current state of the economy, I've noticed that my portfolio has been stagnant this year despite having invested in good companies. I have a reserve of approximately $700k that I'd like to see grow. Does anyone have any suggestions for how I can adjust my investment strategy in light of the recession to improve my portfolio's performance? I appreciate any insights or advice you can share.

@bernisejedeon5888 11 месяцев назад

Concentrate on two main objectives. First, keep yourself safe by knowing when to sell stocks in order to limit losses and maximize gains. Second, get ready to benefit from market changes. I advise consulting a CFP or other professional for advice.

@edelineguillet2121 11 месяцев назад

@@bernisejedeon5888 Yes, I have been in touch with a CFP ever since the outbreak. Today, investing in hot stocks is quite easy; the difficult part is deciding when to buy and sell. With an initial starting reserve of $80k, my adviser chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.

@valeriepierre9778 11 месяцев назад

@@edelineguillet2121 wow that's so incredible! Please provide the information of your CFP, I really need it now

@edelineguillet2121 11 месяцев назад

@@valeriepierre9778 You might have to shop around yourself for advisors, but I've been working personally with JEFFREY HAROLD STARR for the past five years or so. he's selective about the clients he takes in though. I think you could look him up or something.

@yolanderiche7476 11 месяцев назад

@@edelineguillet2121 This recommendation comes just in time because I'm literally grasping for straws right now! I looked him up on the internet and made plans to call him

@billligon4005 Год назад

My partner and I just applied for Medi-Cal (Medicaid) to continue his stay in a Nursing home after the 100 days of Medicare (2023). We have a Revocable Living Trust set up in 2013 (to avoid Probate), we have assets of $103K, one car, one home (well under Medi-Cal limits) and some some stocks which we hope will be protected from the 6-year "Look-Back" of Medi-Cal. So I guess need to talk to lawyer who set up the RLT, but hope we have done it right.

@alluniquefashion6202 3 года назад

HE IS GOOD

@vincesuccaro7356 2 года назад

i LIKED YOUR VIDIO THANKS, I HAVE A REVOCCABLE LIVING TRUST AND MY HOME IS IN IT, WHAT TO DO WHEN MY TRUSTEE SELLS THE HOUSE. SHOULD THE TRUSTEE DIVIDE THE MONIES BETWEEN THE BENFS.

@kathygalvin4325 Год назад

Could you do a video on how to handle the affairs of someone that doesn't have a will or trusts set up? My son passed away and I'm trying to handle is end of life affairs for his daughter's mom cause they weren't married.