What happens when the person who set up a living revocable trust dies. For More Resources... Tax Planning: legalees.com/t... Personal Planning: legalees.com/p... Business Planning: legalees.com/b...
Good attorneys are invaluable. I have met too many who were not so valuable. I had a very good attorney, but he passed and I miss him everyday. Your videos are wonderful, and a testament to your character.
after I die, why must my trust live on, only till all the items have been sold and distributed? all I want is for the kids to sell the house and split the money for each trust item thy liquidate, not put the money back in the trust's bank account. looks like some of us need a video about how and when to end a trust? some learning requires more learning before any of it makes sense, at least for me. thank you for helping us understand via your videos!
Good idea. I will do a video on what happens to your trust after you die. The trust continues on until the trustee wraps up the estate. It becomes an irrevocable trust, so it has to get a tax ID number. The trustee should keep some operating capital to “manage” all of the assets. When the assets are all “gone” he can close the bank account, distribute the last of the estate assets, file a final tax return, and the trust will be ended. This process may be fast or it may take years. The kids might want to keep the rental units for income, and the trust would manage them for decades, so it all depends upon the estate and what the kids (heirs and trustees) want.
What do I do my mother has a irrevocable trust and I'm the trustee but I never received the trust paper work. The house is in my name. I have never received any money from the trust. My mother doesn't have much time left. I have a tax number but never used it. I can have my tax person fix that for me if I have to but I dont have paper work on the complete trust. What should I do. I dont care about the money just keep myself out of trouble.
You can disburse estates in chunks. Just make sure there is enough cash in the accounts to manage the assets held in the trust. Don’t give it all away at once.
Thank you for your channel. You are very informative. May I trouble you for 2 question - 1. when the grantor dies, an irrevocable trust is created. However, the term for irrevocable trust was only a paragraph in the original living trust. Financial institutions ask for the certificate of the irrevocable trust. How do I get the certificate of the irrevocable trust? 2. Can the beneficiary of the irrevocable trust forgo the benefits and pass on the benefits to her children (who was second in line if she passes)? Thanks
The certification of trust would normally be the same as the original certification for the living revocable trust. They need to know the trustee designation and the powers of the trustee, and the name of the trust, etc. Show them a copy of the whole trust if they are unhappy. A lot of places now want the entire trust rather than just the certification. The beneficiary could forgo benefits and have the trustee pay them to the kids. The problem is, the beneficiary got close enough to the possibility of getting the benefits that the IRS may come back on the beneficiary and say you “constructively receipt” of the funds and tax the beneficiary. The beneficiary could renounce before their share was established, and that might make a difference. This is a complex tax question more than a legal question.
thank you for the informative video....i'm the trustee and my mom (grantor) had passed away but i didn't know i have to open a living trust bank account....the house has a new owner and Escrow mailed the house check to me....i already have a EIN that the bank requested but it says "mother's name ESTATE"....so i tried opening an estate account but now the bank says I need a court Legal Document...so my question is can i still open a trust account making me the grantor
You would use the old account your mom had, provided it is held in the name of her trust (should be). Just use the estate account as long as you can. If you can get it all through probate and divided up, that’s all you want.
Question: The grantors of the revocable living trust have passed away (so now it's irrevocable). Do we need to obtain an Tax ID Number to settle the estate ? Thank you..............Bob in Grand Rapids, MI
Technically, you need an EIN for an estate or irrevocable trust and they need to file a tax return. If there aren’t any assets, then the whole EIN thing is probably not needed.
How long does it take to actually receive a check from a living trust after the Grantor (which would be my mom, passes away)? Even if it doesn't have to go through Probate, doesn't the trust still be dissolved, taxed and other work have to be done before I can actually receive funding? (Remembering after my father passed away in 2017 and as I recall there was no Probate and still had to wait six months for funds). Just trying to plan ahead, if anyone can help with providing answers, sure appreciate it!
The successor trustee can cut a check the instant they access the account which should be when the show up at the bank. The trust goes on as an irrevocable trust it gets an EIN and becomes its own entity. The trustee should keep enough money to transact business, possibly for years. Distribution to the heirs comes at discretion of the successor trustee. It could be done instantly, but the trustee has to manage all the assets and giving all the money away wouldn’t be a good idea. Who pays the plumber then the pipes in the house freeze? Who pays the lawyer if something has to be probated? If you are the heir, you should get accounting and some money could be transferred now if there is lots of money, but the trustee has to keep money to run the “company” as long as is needed.
The loan will not be retitled. Under the Garn St Germain Act, transfer into a living revocable trust is not something that will affect the mortgage. It just stays the way it is. You don’t even tell the mortgage company.
Hi Lee, I'd like to know 1) I am the Grantor and Trustee, if I die, then the assets go to my beneficiaries? 2) bank told me since my account is set up as Joint Tenants so I don't need to change to trust account, is this fine? Thanks Lee!
There are a dozen reasons why it is not ok to use a joint tenancy instead of a trust. There will always be a probate with JTWROS (joint tenants with rights of survivorship). You will ultimately run out of survivors. Never put a kid’s name on anything as a joint tenant. That asset is then theirs 100%. (Yes, that’s the definition of a joint tenant. Each joint tenant owns 100%) that asset is now subject to their creditors, divorces and everything else. Use the trust. The bank has no clue what they are talking about.
You could name the wife as trustee. The estate in the trust would not pass as intestate, so the father wouldn’t get any of it, assuming that is what you are referencing.
