On Living Trusts: A Few Commonly Asked Questions
A living trust operates in much the same way that a trust does, except that a beneficiary to oversee the affairs of your estate and property is named and given reign while you are alive. You can even name yourself as the beneficiary of a living trust. There are a few questions that you might have about living trusts, however. Read on, and a few of the more common questions will be answered for you.
Does the Grantor Require an EIN?
An EIN, or Employee Identification Number, might be required on behalf of the grantor for tax purposes. In cases where the government does ask for an EIN from the grantor on various forms and sheets, the grantor can simply write in his or her social security number. After the grantor dies, however, the person who become the successor to the living trust will be assigned a specific EIN by the IRS that will differ from his or her social security number.
Should You Make a Living Trust?
If you are sure you know who you want to inherit your assets and property and do not want your family to go through the process of probate court, then you should invest in the time and effort of having a living trust drawn. Probate court is a process wherein the court decides who will inherit your property, assets, and debt. Much of the profits and assets that your family stands to inherit can wind up going toward court fees during this time, so it very well may pay to hire a lawyer who specializes in wills and trusts, such as a professional from Donald B Linsky & Associate Pa, to draft a living trust on your behalf.
Will You Still Need a Will So Long As You Have a Living Trust?
In a word: yes. Simply put, a living trust will name a beneficiary for your current assets. This means that any assets that are not listed—assets that were either forgotten or accrued after the living trust was drawn—may be considered to be in legal limbo without an inheritor. A will can make for broader provisions than a living trust can. You can, for example, declare that all property and assets not covered by the living trust can be transferred to the beneficiary of the living trust, or you can declare that certain things should be transferred to other individuals who are not the beneficiary of the living trust. If you don't have a will, and some asset or property is not covered by the living trust, the property in question will be transferred to your closest relatives as determined by your state's law.