Do I Need a Revocable Living Trust? | Mark J Kohler - YouTube

Hi Mark Kohler here with another tax and legal tip

I want to talk about for triggering events that might indicate you need to get a

Trust a revocable living trust a family trust as part of your state plan rather than just relying on a basic will number one

children under the age of eighteen or

Children that act like they're under the age of eighteen now it could also be children with special needs

And and you need to leave them your estate in a constructive manner with special rules now with all these four reasons

I'm going to assume that you do have some sort of a state may be its life

Insurance or retirement account a lot of equity in your home or some investment real estate

but you don't want to just flop this money into your kids lab and create a

Problem or maybe it just ruins their life more than helps them

This is a good reason to have a trust because the trust can

Put all sorts of rules and provisions in there

They get a chunk of money at age twenty-five another chunk at age thirty another chunk at age 35

Maybe money to buy a home or start a business or attends college

But anyway you can put all this into a trust, and if you have a will, it's much more difficult

It's clunky it makes a much more elaborate and complex will where a trust can do it much more effectively so

Number one trigger an event you have kids and you want to leave really specific rules. I think of Trust is a must

number two you own real estate

Now when you own real estate, and you pass away you can trigger?

What's called probate?

Probate is the court action where a judge gets involved and has to find out what your will really said is it really your will

Or if you die without a will it triggers what's called intestate probate and that can be a very costly

Experience and time-consuming for your heirs and the family so if you have one real estate even your primary residence

You want to have a trust on your real estate owned your home or maybe even own your LLC's to own your rental properties

so that if something happens to you your trustee can step in and

Handle all of your real estate without having to go to court now some people say well

I'll just have my spouse on the title with me

And if I die my spouse will get it or I'll put my kids on title and then they'll get it well

Putting people on title to your real estate

Can be very scary if they have their own legal problems and what happens if you and your spouse both pass away

What's gonna happen to your real estate probate so if you own real estate? Do yourself do your family a favor?

With all out work you put into it to prevent more lawyers getting it the money or the government I?

Get a trust and avoid probate number three

Medical concerns or needs for yourself and what I mean by this is you might be getting a little older in age

Or you might be having some medical situations

Or health concerns and having to trust and all your assets placed in that trust

Can make it easy for your loved ones to manage that trust for you while you're still alive, but maybe unable to manage your affairs

It usually includes a durable power of attorney a springing durable power of attorney

They give someone authority a backup trustee to run your affairs if you have a medical situation

Where you're not able to manage your financial affairs

So that's a good reason for a trust and a trustee that you trust to run your affairs

And and that's another important reason to consider a trust when you might anticipate something like that happening number four you're wealthy

That could trigger the need for a trust, and I'm talking about you being worth more than five million dollars

That could be

Equity and real estate equity in your home

Life insurance policies or in retirement accounts all combined what happens when you pass away is the IRS takes a picture

How much are you worth on paper - your debts? Well if that amount is over five to six million dollars?

You've got to have a trust to avoid estate tax now if Donald Trump and Congress get together and repeal a state tax great

but until then

We want to do some more advanced planning now if you're married this involved. What is called a a B trust a

/b trust and they've been around for years and years

And they allow you to maximize your estate credit of this five to six million dollars times two

But if you're a single or you're worth more than ten to eleven million dollars are married

You've got to think of some other strategies as well, so this is much more advanced planning

But it starts with an AV trust if you're married or some additional plan within our

Basic revocable living trust if you're single

Now those my friends are the four main reasons why you might need a revocable living trust as part of it more

Well designed and a little more complex estate plan rather than just knocking something out with will

So talk to your lawyer if you need some help you can always call our law firm

We'd love to be of service, but get some planning done

This is something that is really gonna leave a much more organized situation for your family

And if you're working so hard to build up those assets make sure you have a constructive way of

Passing them on to your family or a charity or whatever is important to you

Thanks for watching, and if you love that video. I've got a lot more

Please subscribe to my channel and I shoot weekly videos that can help you in your business personal life and better

Live your American dream also check out my newsletter free newsletter every week with blog articles tips strategies tax deadlines

You'd love it. Also if you like social media

Please follow me on social media with different daily tips

And if you like to connect that way it could be a lot of fun, but quietly

Please check out my tax and legal library

I have 50 plus videos on these topics and more where I pull out a whiteboard and break them down hours and hours of

Helpful information that can better help you live where people