Once the Court gets involved it usually stays involved until you recover or die. The Court, not your family, controls how your assets are to be used to care for you. Probate is expensive, embarrassing, time consuming and difficult to end even if you recover. Since the process does not replace probate, your family will have to go through the Court system at least twice. A Family Living Trust prevents court intervention.

A Family Living Trust (FLT) is a legal document drafted in conjunction with a Pour Over Will, a Living Will, Letter of Wishes, Durable Power of Attorney and Non-Contestability. Together they will enable you to avoid probate and allow you, not the courts, to control your assets while you are living. If you become disabled or incapacitated, the Trust will appoint the person you have named to act as your guardian using the durable power of attorney you have authorized.

FAMILY LIVING TRUST BENEFITS

• Offers maximum privacy • Avoids probate • Is rarely challenged • Can reduce or eliminate estate taxes • Controls undistributed assets • Retains assets as long as you want

• Preserves inheritances for children • Protects dependents with special needs • Quickly distributes assets to heirs • Prevents loss of control • Takes care of you while you're alive • Provides direction during medical crisis

Use a family living trust to avoid probate court.

An Irrevocable Life lnsurance Trust (ILIT) eliminates paying estate tax on life insurance and pays the funds directly to beneficiaries allowing for a direct by-pass of your declarable estate.

A Personal Property Trust (PPT) gives you privacy because the Trust is not a public record. When used as the General Partner, your personal name does not appear and allows you control by directing the Trustee.

Life Tenancy Trust or Life Estate Deed protects your right to a permanent interest in your home and can be placed into a Family Limited Partnership.

Charitable Remainder Trust (CRT) – In return for the irrevocable transfer of cash or property to the trustee, a certain percentage or amount of the annual income from the property is paid to you and/or another named beneficiary(ies) for life or for a specified term of years. The remainder interest in the property would then pass to your own foundation.

You would be entitled to a federal tax deduction for the present value of that charitable remainder interest, which is based on the number and ages of life income beneficiaries and percentage of payout you and the trustee agree upon. Some advantages of the charitable remainder trust are:

Capital Gains Tax Postponed – If you fund the trust with appreciated property, you will eliminate or postpone capital gain on the appreciation, and the trust will be funded with the full fair market value of the gifted asset.

Charitable Remainder Annuity Trust (CRAT) – These trusts provide that a specific fixed dollar amount (at least 5% of the initial value of the assets at the time the trust is created) be paid at least once a year to the beneficiary(ies) for their lifetime(s) or for a term of years.

Charitable Remainder Unitrust (CRUT) – This type of trust provides that a fixed percentage (at least 5% of the current fair market of the trust) is paid to the beneficiary(ies) at lest twice a year. The amount paid to the beneficiary(ies) will vary on a yearly basis according to the fluctuating value of the trust.

Pooled Income Fund (PIF) – These are trusts into which donors irrevocably transfer cash or other property, contributing the remainder interest in the property to their foundation. Each donor is paid the annual income based upon the proportionate share of assets, which he or she contributed to the total fund property.

Charitable Lead Trust (CLT) – These trusts provide income, either a percentage or a specified amount, to the donor’s foundation for a specific number of years. At the termination of this period, the principal is returned to the donor or others whom the donor has designated.

A Dynasty Trust - is a trust that is designed to hold assets in the trust without direct ownership being transferred to any beneficiary. Instead, successive generations may receive distributions from trust assets or assets that remain held in the trust, thus allowing for future benefit and growth.