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If you determine that a revocable living trust is appropriate for you, here’s how to continue your estate planning and find the expert help you need.
Importantly, if you determine that a living trust is appropriate for you it should only be one part of a comprehensive estate plan.
Specifically, you still need to create a will to transfer any property that you didn’t put into the trust or that isn’t covered by another probate avoidance method. Most important, if you have minor children you still need a will to name a personal guardian.
Moreover, you still need a durable power of attorney for finances to manage any assets you haven’t put into the trust in the event you become incapacitated.
The Federal Trade Commission warns consumers to beware of incompetent or unscrupulous salespeople who sell expensive, unnecessary, or invalid living trusts, along with unneeded financial products.
These salespeople exaggerate the length, costs, and complexity of probate and mislead non-wealthy consumers into believing that they’ll owe estate taxes.
These fraudulent operators commonly target retirees and advertise free appointments or seminars, falsely claiming that attorneys will prepare the documents. Unsuspecting consumers end up paying thousands of dollars for ineffective living trusts and expensive, unneeded life insurance policies.
For information about the Federal Trade Commission’s advice, refer to the brochure, Living Trust Offers: How to Make Sure They’re Trust-Worthy, www.ftc.gov.
To make sure a living trust is appropriate for you and that it’s properly drafted and implemented to meet your specific needs, only use the services of an experienced attorney who specializes in estate planning.
Carefully check an attorney’s qualifications and credentials and get recommendations from past clients. If you use do-it-yourself books or software, only use those from reputable companies that clearly state when to seek advice from an attorney.
Article is for educational purposes only and is not intended to provide specific tax or legal advice. For answers to tax questions, please see your tax professional. For legal questions, consult an attorney.
Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (800) 369-2862. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America. The Representative may also be a credit union employee that accepts deposits on behalf of the financial institution.
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