While other professionals and business representatives may be involved in your estate planning, a living trust is a legal document, which should be prepared by a qualified lawyer. You should seek advice only from lawyers who specialize in giving estate planning advice. Ask the lawyer about his or her qualifications in this area. I have specialized in this area for more than 25 years.
It is crucial to keep in mind that a living trust is a very important part of your estate plan. Avoid being lured by promotions …

Yes. Your living trust is valid in all fifty states, regardless of the state where it was originally created.

Make no mistake about it, your attorney is going to change you an extra fee for drafting a living trust for you. As previously noted, your lawyer will have to prepare both a living trust and a will for you. A living trust agreement also is longer and more complicated than a will. In addition, your attorney will have to advise you how to retitle all of your assets to the name of the trust. You should ask your attorney how much more it would be …

No. Many people think that putting their assets into a living trust will help them qualify for Medicaid, because the assets would no longer be titled in their name. However, because a living trust is revocable and under your complete control, you have not “given anything away.”

A living trust offers no creditor protection against your creditors. While a trust created at your death can protect against creditors of your beneficiaries, this can also be achieved by a trust under a will.

The use of a living trust itself provides no special estate tax savings over disposing of your property by a will. Ads are run in the newspapers almost every day in the United States claiming that a particular form of revocable trust will save taxes when you die. The implication is that the living trust will save more than if you dispose of your assets in another way, such as by will. Those claims are false. Any estate savings achievable with a living trust can be …

No change occurs in the means by which you file your income taxes. The income of the trust is considered yours and you report the income on your personal income tax return. You will not have to file a separate income tax return for your living trust. No special tax identification number is required for your living trust; you simply use your social security number.

As previously noted, you should transfer all, or substantially all, of your property to the living trust. Actual deeds, assignments, transfer documents, etc. should be prepared to give yourself as trustee title to all of the assets prior to your death. If an asset is overlooked, e.g., not owned by you as trustee or naming the trustee as beneficiary, a probate proceeding still may be required. It is this risk that causes careful lawyers to recommend a “pour-over” will to complement the trust. A pour-over will provides for …

Avoiding Probate. The primary reason for having a living trust is to avoid probate. Every will must go through a process called “probate.” Probate means your will must be authenticated by a court and an executor must be appointed to collect your assets, pay your creditors, and transfer of your property to the beneficiaries under your will. The probate process results in attorney and court fees and some delay. By contrast, a living trust does not go through probate, allowing assets to be distributed immediately …

When you die, the person you named as successor trustee (your spouse, child or other close family member), takes charge of the trust, pays any debts, and distributes the remaining assets the way your living trust document says. Your trust may create new trusts, e.g., for the benefit of your children, your special needs child, or your elderly mother and/or father. Assets may be distributed outright to named beneficiaries in the form of money, real estate, cars, personal items, shares of stock, or the like, or they may be …