Oren Ross & Associates

1. Living Trusts - Avoiding Probate Through Living Trusts Living Trusts have always been a popular way to ensure your legacy goes to your intended beneficiaries without too much difficulty at a later date. Unfortunately, living trusts have become even more complex and difficult to understand. They have also been used to create additional debt for your heirs, so it's always a good idea to consult a qualified attorney when creating one. There are many who question the practicality of having a trust when one can easily carry out an estate plan with the help of a power of attorney. But if your intent is truly to ensure your estate goes to your beneficiary, then there really is no reason not to use a living trust. It may seem easier to take care of your estate with the Wills and Trusts Attorney Atlanta , but it's important to understand the pros and cons. For starters, living trusts have been around for quite some time, but they were primarily designed as a way to avoid probate and inheritance taxes. Now that everyone has access to their inheritance regardless of any tax consequences, people have found them useful for avoiding probate and maximizing their estates. Some even use them to protect assets from creditors and potentially paying taxes on them in the future. But using a living trust may not be a practical solution in the event you pass away unexpectedly or if the circumstances change dramatically. You can use a living trust to protect your assets, but most don't realize they don't offer the same planning documents and strategies you'd find from a qualified attorney. In fact, most people don't consider the living trust's

2. attorney necessary because the planning documents are typically placed in the name of the individual, anyway. Unfortunately, your beneficiaries will not receive the proper instructions while trying to decide how to divide the inheritance, and they are not protected under the laws regarding probate. When this happens, you could be faced with huge estate tax bills. The living trust may also not meet the requirements of other plans, since it does not include a revocable living trust. Revocable trusts must be filed with the IRS within one year after the decedent's death. It is possible for an individual to designate another individual (living trust) as the primary caregiver, but the trust itself cannot be modified without having the original beneficiary present and sign the necessary paperwork. Once the primary caregiver passes away, there will be a new set of beneficiaries who will need to create a new living will. Most living trusts do not include any type of revocable living trust provisions. If that is your goal, an attorney would not recommend the use of a living trust as part of your estate plan. You may be thinking that you can avoid probate by transferring your assets into a trust and avoiding paying taxes on them until the money is dispersed. In fact, there are several potential problems with this strategy. First, if the distribution of the funds occurs before you die, you could be subject to Estate Tax. Second, you may be inadvertently creating a double taxation for beneficiaries when the distribution takes place later. Lastly, even if the distribution takes place after you die, if the beneficiaries live in an area that is subject to property tax, they may still owe property tax on their shares of the estate. Contact Us: Oren Ross & Associates Address: 200 Galleria Pkwy #1880, Atlanta, Georgia 30339 Phone: (404) 436-1752 Email: oren@orenrosslaw.com https://goo.gl/maps/xbbDeXH4teCxXM139