Can I Keep My Estate Private With a Living Trust?
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- Опубліковано 26 чер 2024
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In this video, I’m not going to address hardcore efforts that some people take when they feel like they are already exposed to millions of dollars of liability, and they have several millions of dollars (or more) of assets that they are wanting to protect from creditors, and they are willing to incur tens of thousands, if not hundreds of thousands of dollars of legal expense to hide assets due to their significant liability exposure. This privacy conversation is more for the “average Joe” who doesn’t face an existing significant liability, but just simply is asking the question, “Paul, I’m considering setting up my living trust for my family to get my legal affairs straight and enable my survivors to avoid a probate mess. And oh, by the way, will me or my family get any additional privacy protections by me setting up my living trust?”
So I address two circumstances surrounding privacy as it relates to the typical revocable living trust. First I address what privacy expectations you can have during your lifetime if you establish a RLT, and then second I address what information remains private surrounding your RLT after you pass away.
0:00 How Much Privacy Does Living Trust Provide
0:18 This is Not Hardcore Creditor Protection
0:44 The Average Joe With Typical Living Trust
1:15 Privacy During Life and After Death
1:41 Privacy During the Settlors' Lifetime
4:31 Privacy When the Settlors Pass Away
7:24 Beneficiaries and Trust Assets Remain Private After Death
"UNLESS there is litigation" says it all...and you Paul are one of the FEW who disclose that unseemly reality... Thanks for your honesty...
I appreciate your consideration of the "average Joe" people. Some of us are even below average. 😔
Your video are so helpful, thank you so much. Please keep it going
After seeing an earlier version of this video, while setting up my RLT, I asked my estate lawyer about giving the trust a name different from my own. She said the county and state records show the source of transactions in the trust. A D minus detective can follow it right to you. She also said that banks and governments in TX throw shade on asset transfers to an LT that does not have the name of the original owner. I could see delays, e.g., a bureaucrat wants to study the complete trust document, not just the certification (even though state law says a copy of the certificate is sufficient). Given how tough the funding process in multiple jurisdictions was after I completed it, I agreed that it was smart not to give these people any reason to be slower than they were. I will let the successor trustee do it when the trust becomes irrevocable after I pass. Then it is strictly a legal change.
Thanks for this information! 🥰
The Word "Private" Means: without government oversight. The titles to real property mentioned herein are said to be registered in county records after the created trust owns it and upon transfer to beneficiaries. From my understanding (which is limited), if you are registering transfers of real property owned (legally and equitably) in a county within the United States Inc. Trust, then the said created trust is thereby only an equitable owner of said property because the created trust itself is actually considered property "inside" the United States Trust (usually mentioned in jurisdictional grounds of declaration of trust). In these circumstances it is my belief that you cannot be considered a "Private" trust because you are within the United States Trust and therefore can only be equitable owner. Please correct me if possible. This comment was created in good faith
Thank u thank u
Thank you too
Do beneficiaries of living trust assets pay state inheritance tax according to the particular state inheritance tax law in the same fashion as beneficiaries of a will pay state inheritance tax???
Yes
@Garfield Ma Ma is asking about state income tax. You have just referenced the federal income tax rule.
Does not that depend on the status of the trust after the death of the grantor? Yes, if the estate immediately distributes the assets to beneficiaries, then I would expect the state inheritance tax would apply. If the RLT becomes an irrevocable accumulated trust with a spendthrift clause, the beneficiary(ies) do not inherit anything except income. They should not pay inheritance tax.
The signal for the state IRS seems to be the probate process. The state IRS gets a copy of settled probates. If the trust evades probate, how does the state know?
@@michaelblazin4093 while you make an *excellent* point, I think the question assumed a distribution.
Is there any reason to make a living trust irrevocable?
I heard Monica and Chandler were Friends before they started dating and got married.
Why would you want it a secret, if everything was legit?
I need to get some information about a deed and it is too complicated to try to explain it, would you be so kind to provide me a number where I could call you, thank you so much and God bless you for all the valuable information.