HOW LIVING TRUSTS WORK
Appoints another to make health care decisions for you if you are unable to do so. It can come into play if you are in a car accident or something unexpected goes wrong or happens during even planned surgery. If you still find yourself asking, “What is a healthcare proxy,” our Briarcliff Manor legal team is at your disposal.
- The trust is established when you are alive and you are named as trustee and beneficiary.
- You transfer assets you own to the trust.
- Title to property must be changed to the name of the trust!
- Deeds to real estate must be changed.
- Names on bank or investment accounts must be changed.
- You have use and access to trust property as if it were your own.
- A separate tax I.D. is not needed, nor is a separate tax return filed for the trust. For tax purposes, it’s still considered your asset.
- At your death, a new trustee takes over, and assets are held in further trust or distributed per the trust document.
- Living trusts are called “will substitutes” because they can be created to distribute all of your assets, in place of a will.
Typically, if people establish a “living trust,” they also execute a simple will which leaves everything to the trust. In this way, if there is any small asset or personal property not owned by the trust, that base is covered. This type of will is known as a “pour-over” will.