Frequently Asked Questions

Living Trust Lawyers’ focus is on preparing affordable estate plans for small and medium-sized estates. As such, they are able to charge a flat rate fee for their living trust packages that is usually approximately one-half or less of what a traditional law firm charges. For example, in Idaho, Living Trust Lawyers charges a $1,500 flat fee for a complete married living trust package; $1,200 for a single person.

A complete living trust package includes the documents identified on the home page of this website, i.e., revocable living trust, declaration (or abstract) of trust, pour-over will, living will, durable powers of attorney for asset management and healthcare, and instructional documents. The price includes the preparation of a quit-claim deed funding your home into your trust.

Since a living trust is a legal arrangement, it is a good idea to have an attorney prepare it.

A living trust attorney can be helpful since they focus on the creation and management of living trusts and offer assistance in the proper preparation and funding of the trust. While establishing a DIY living trust is always an option, an attorney's guidance can help ensure the trust is properly set up and mitigate potential legal complications.

Many DIY trusts fail to include all of the necessary documents that make up a complete living trust package, including, but not limited to, Abstract of Trust, a properly executed "pour-over" will, living will, or may even leave out the durable powers of attorney entirely.

Living Trust Lawyers’ focus is on creating estate plans for simple, small, and medium-sized estates. As such, the process is streamlined, and the overhead is low, enabling us to pass on substantial savings to our clients. We also charge a flat fee, rather than billing our clients on an hourly basis, so our clients know upfront what the cost of their estate plan will be.

A revocable living trust is not a "one size fits all" solution to estate distribution upon death. However, there are a number of reasons it is popular for homeowners and “mom and pop” estates.

A revocable living trust can be considered better than a will because it offers more control over asset distribution, greater privacy, can avoid probate court, and allows for management of assets even if you become incapacitated, while a will only dictates how assets are distributed after death and may require a lengthy probate process to settle the estate. It may be a bit of a hassle now for the creators, but it will almost always make the dissolution of the estate upon the passing of the last surviving trust creator (or “settlor”) much easier, less time-consuming, and less expensive for the beneficiaries.

A will is often simpler and less expensive to create than a revocable living trust, making it a suitable option for individuals with smaller estates or simpler estate planning needs.

Key advantages of a revocable living trust over a will:

• Privacy: A trust keeps your estate plan confidential, while a will becomes public record.
• Avoidance of probate: Assets held in a trust can be distributed more quickly to beneficiaries without going through the probate court process. 
• Incapacity planning: A trust can designate someone to manage your assets if you become mentally or physically unable to do so.
• Flexibility: You can make changes to a revocable living trust during your lifetime.

No, a person does not lose control of their assets when they create a revocable living trust; because "revocable" means they retain full authority over the assets within the trust during their lifetime, allowing them to buy, sell, or make changes to the trust property as they see fit.

Key points about revocable living trusts:

• Full control: As the grantor, you remain the legal owner of the assets in the trust and can manage them as you did before creating the trust.
• Flexibility: You can modify the trust terms, add or remove assets, and even revoke the entire trust at any time while you are alive.
• No asset protection: Unlike an irrevocable trust, a revocable trust does not typically provide significant protection from creditors.

If a person dies without a will or trust, their assets will be distributed according to their state's "intestate succession" laws, meaning the property will be divided among their closest family members, like a surviving spouse, children, parents, and siblings, in a predetermined order based on the state's regulations; if no family can be found, the estate typically goes to the state itself.

Key points about dying without a will:

• Probate court involvement: The estate will be taken through the probate court process by an attorney where an administrator may be appointed to manage the distribution of assets based on state laws.
• Priority of inheritance: Generally, a surviving spouse receives the largest share, followed by children, then parents, and siblings.
• No control over distribution: Without a will, the deceased has no control over who receives their assets or how they are divided.
• Potential for disputes: Family members may disagree over the distribution of assets, leading to potential legal battles.

When a person dies with a will, the named executor of the will must retain an attorney and go through a legal process called "probate" to file the will with the court, proving its validity, and then distribute the deceased person's assets (estate) according to the instructions outlined in the will to the designated beneficiaries; essentially, the deceased's wishes regarding their property and belongings are followed as outlined in the document.

The person named as the executor in the will is responsible for managing the probate process, paying any debts, and distributing the assets to the beneficiaries as specified.

The executor must file the will with the probate court to initiate the process of validating the will and gaining legal authority to distribute the estate.

Yes, but not without risk. Creating a joint tenancy or taking ownership as tenants in common on a deed can help you avoid probate. Such a deed may avoid the probate process, which can be costly and time-consuming. However, such deeds may lead to hefty capital gains tax, where living trusts allow the grantor to pass on a 'stepped-up' tax basis to the beneficiaries, which can reduce the capital gains tax burden if the property is eventually sold. Such deeds may also create issues should a joint tenant or tenant in common come into financial problems and declare bankruptcy. If that happens, one could lose some of their property to the bankruptcy trustee.

Yes, naming beneficiaries on accounts can help you avoid probate. Probate is a legal process that involves distributing a deceased person's assets. Beneficiary designations allow you to transfer assets directly to your chosen beneficiaries, bypassing probate. Real property (house and land) generally are the biggest reasons to create a living trust and avoid probate. If you do not own real property, you may get by without a trust and avoid probate by naming beneficiaries to your personal property accounts.

By creating a living trust and making it the beneficiary of your accounts, you are able to funnel the proceeds of the account into the trust. This means if you want to change beneficiaries in the future, all you need to change is the trust document—not all the beneficiaries on every account.

How it works:

• Payable-on-death (POD) accounts: You can name a beneficiary to receive the funds in your bank account when you die.
• Transfer-on-death (TOD) securities: You can name a beneficiary to inherit your stocks, bonds, or brokerage accounts.
• Retirement accounts: You can name a beneficiary to inherit your retirement account, such as an IRA or workplace account. However, you do not want to fund your trust with a tax-deferred account such as an IRA or 401(k). Generally, one will name his or her spouse as the primary beneficiary of his or her IRA or 401(k) to retain "roll-over" privileges and name either the trust or other beneficiaries as the alternate beneficiaries on the account.