Tag: revocable trust

Estate Planning for Your Home-Simple Will, Transfer on Death Affidavit or Revocable Trust?

You own your home and want to ensure that it passes to particular loved ones upon your death but you’re not sure the best way to do it. This blog post will break down your options for you.

First, it is important to look at your deed and determine how the property is held. Often married couples have a survivorship deed. With a survivorship deed, upon the death of one spouse, the real estate transfers to the surviving spouse outside of probate. One need only record an Affidavit of Surviving Spouse with Death Certificate to effectuate the transfer. If the home is in your individual name, or you own a partial… Read the rest

Having a Home in a Living Trust Can Effect Medicaid Eligibility

Not so long ago, living trusts, also commonly referred to as revocable trusts or family trusts, were used as Medicaid planning tools for married couples in Ohio. A married would put their home in a living trust prior to a Medicaid application. As the home was in a trust and not in the names of the married couple, it was considered a countable resource. As such, it would increase the Community Spouse Resource Allowance (“CSRA”) by the value of the home, thereby allowing the community spouse to spend down excess resources by transferring the home into their individual names rather than spending the… Read the rest

What Your Lawyer Didn’t Tell You about Your Living Trust

A living trust, also known as a revocable trust or a family trust, is a trust you establish during your lifetime.  Most people establish living trusts with several goals in mind, setting forth how they wish their assets to be distributed upon death and avoiding probate.  What many attorneys forget to make clear to their clients, however, is that a Living Trust can only do its job if it is funded. 

What does it mean to fund a trust? Funding is the process of transferring the ownership of your property or changing the beneficiary designations on your property into the name of your trust.  Unless your … Read the rest

Lessons for Trustees and Beneficiaries Part I – What is a Trust and Who Has to Know About it?

What is a Trust?

A Trust is a legal document that sets out the rules for the transfer of property (Ie. When the property will be distributed, How much, To whom, etc.). The person who creates the trust and is seeking to transfer his property is called the Settlor or Grantor.  The person who holds onto the property is called a Trustee and the person who is to benefit from the property is the Beneficiary. 

Who Has to Know About a Trust?

According to Ohio Law, unless the Trust says otherwise, a Trustee must keep all current beneficiaries of a Trust informed about the administration of the Trust.  If a beneficiary… Read the rest

Using an Irrevocable Trust to Plan for Medicaid

There are many Medicaid planning strategies designed to transfer assets without incurring a penalty.  (See http://www.perlalaw.com/blog/personal-caregiver-agreement/).  This blog will explore many of these strategies.  One such strategy is the Irrevocable Trust.  With an Irrevocable Trust, which is a trust that cannot be changed or terminated, drafted so that you receives only income and not principal, you can transfer your assets, wait 60 months and apply for long-term Medicaid without penalty. 

Why Can’t I Set Up a Revocable Trust Instead?

As a revocable trust can be changed or … Read the rest