No, living trusts aren’t just for the wealthy. While they may have a higher upfront cost, living trusts are a valuable tool for individuals at all income levels. They help manage finances and assets, provide for beneficiaries, and offer protection in the event of disability, all while avoiding the time-consuming and costly probate process.

At Universal Wealth, we believe that everyone should have access to the best financial tools, and a living trust can be a smart choice for ensuring your assets are handled according to your wishes.

Probate is the legal procedure where a court supervises the distribution of your estate and assets after your passing. While this process ensures there is oversight and clarity, it can often be lengthy and costly, varying by state.

When you have a Last Will, your assets are subject to probate, meaning the court oversees the distribution to your beneficiaries. However, with a Living Trust, your assets bypass the probate process, allowing for a more efficient transfer to your loved ones.

In some states, probate may not be necessary for estates of minimal value, but our team can help you navigate the best approach for your unique situation.

Setting up a living trust typically costs more and involves more effort than creating a last will. However, at Universal Wealth, we offer affordable attorney and non-attorney-guided solutions to fit various budgets. Some packages even a 30-minute review with an Estate Attorney.

A Last Will & Testament is typically faster to establish and less complex. However, it must go through probate court after your passing. Probate can be a lengthy and costly process, depending on your state’s regulations.

A Living Trust, on the other hand, helps your loved ones bypass probate altogether, offering a smoother transition of your assets. However, setting up a trust requires you to retitle most of your assets, which involves additional paperwork and ongoing management.

Both options have their merits, and our team is here to guide you in choosing the solution that best fits your family’s needs.

Your last will and testament sets forth the distribution of your property and assets; establishes vital care for your children; and otherwise lets your wishes be known about how you want things to go upon your death. The will is a directive through which you can leave property to a person or entity who need not be a blood relative (friend, domestic partner, charity, etc.).

An ideal will should:

• Identify all assets and liabilities in the estate
• Account for the handling of all assets in which you have ownership
• Name a trustworthy and capable executor
• Identify all beneficiaries precisely to avoid confusion with persons having similar names

A will can also be used to set up trusts for the care of minor children or family members with special needs or for the benefit of charities. You can even decide what happens to your pets.

With a trust, you are creating a legal entity stating your place as the legal owner of a designated property. A trustee manages this property during your lifetime. You can name yourself as the trustee, or you may appoint another person or institution. You can then stipulate that, when you die, the property in question continue under the management of a trustee, or that it be transferred to named beneficiaries, depending on how you want to set things up. In addition, you can create a trust as part of a will.

Common trusts include:

• Asset Protection Trusts
• Credit Shelter Trust
• Generation-Skipping Trust
• Irrevocable Life Insurance Trust
• Qualified Personal Residence Trust

One of the options you can elect as part of your estate plan is a living trust. This is a trust you craft during your lifetime. A living trust can be a better choice than a will because:

• Your family will circumvent probate, as the living trust will provide for asset transfers that would automatically happen.
• Your assets will be shielded from legal claims or liability.
• You will reduce the size of your estate, thus avoiding a costly federal estate tax.
• You will be able to place stipulations on the release of funds or the use of property.
• You will grant an income or allowance for a loved one.

A revocable living trust is a flexible estate planning tool that allows the person who created it to make changes or even revoke it entirely during their lifetime. This means you can modify the terms, add or remove assets, and update beneficiaries as needed.

In contrast, an irrevocable living trust is permanent and cannot be altered or revoked once it is established.

Yes, with an individual living trust, you have full control to transfer assets and property, including real estate, in and out of the trust during your lifetime. Typically, you serve as your own trustee while you're alive, giving you flexibility and control. Upon your passing, the trust is managed by your successor trustee, whom you have personally chosen.

For joint trusts, any co-owned property will require the consent of your co-trustee for transfers.

Yes, even with a living trust, it's important to have a Last Will in place. This is because some property may not have been transferred into your trust during your lifetime. Our living trust package includes a pour-over will, which ensures any remaining assets are transferred into your trust and distributed to your beneficiaries as intended.

Additionally, a will allows you to designate guardians for your minor children, providing an extra layer of protection for your family’s future.

Yes, a living trust remains valid in all 50 states, regardless of where it was originally created and signed. However, we recommend consulting a living trust attorney licensed in your new state to ensure everything is up-to-date with local laws. Additionally, if you purchase real estate or acquire new assets in your new state, it's important to transfer them into your trust to keep your estate plan current and effective.

No, you’re not legally required to have an attorney prepare your living trust. However, depending on your personal circumstances, such as the size or complexity of your estate or if you have a child with special needs, seeking legal advice may be beneficial.

We offer living trust packages that include access to professional guidance, including unlimited 30-minute calls on new legal matters. This ensures that your trust is tailored to your unique situation, giving you peace of mind that your estate is in good hands.

An advance directive empowers you to manage your own medical and financial concerns, even while disabled, by setting forth instructions on various matters. Two forms of advance directives are:

Living Wills – This document states what kind of medical care you wish to receive or to have withheld should you be too sick or injured to express your wishes. These are not wills in the conventional sense, as they do not distribute property and are meant to be executed while the person is alive.

Durable Powers of Attorney– In the event that you are not able to participate in decisions about your medical treatment or financial matters, a power of attorney authorizes someone you trust to make choices on your behalf. A power of attorney does not have to go into effect immediately. You can execute the document, making the power contingent on the occurrence of some triggering event, such as your illness or incapacity. A medical power of attorney empowers someone you trust to be your advocate with medical professionals.

With an estate planning attorney constructing the necessary documents, things will be made clear. There will be no ambiguity, meaning no room for misinterpretation or argument among family members over what you intend. This way, your family will avoid emotional turmoil, as well as expensive litigation, and be able to move forward.

Powers of attorney are documents that convey legal authority to act in the name of another person for their health and welfare. The person who conveys the authority is known as the principal, and the person who receives authority is called the agent.

A power of attorney can grant broad authority or be limited in scope. It can be durable — transferring authority immediately upon execution — or it can state that the power will “spring” forth when a defined triggering event occurs.

Generally, powers of attorney address three main areas of concern:

• Financial Management
• Representation for Legal and Business Matters
• Authority to Make Medical Decisions

No, you cannot transfer your 401(k) or other specific retirement accounts directly into a living trust. However, you can name your trust as a beneficiary for those accounts to ensure smooth distribution after your passing. For more guidance on which assets can be included in your trust, it’s best to consult a living trust attorney.

We’re here to help you navigate these decisions and ensure your estate plan is structured effectively.

The potential disadvantages of placing your house in a trust mirror those of having a living trust overall. One of the main drawbacks is the administrative task of transferring the title of the property into the trust, which can be time-consuming and require paperwork. However, once the house is titled in the name of the trust, it can pass directly to your beneficiaries without the need for probate, saving time and costs in the long run.

A living trust can help reduce estate taxes, but it depends on how the trust is structured. With proper planning, certain strategies can be implemented within a trust to minimize the tax burden on your estate. We recommend consulting with an estate planning attorney to explore the best options for your specific financial situation. We’re here to help you navigate these complexities and ensure your estate is as tax-efficient as possible.