• Our Promise to You During COVID-19/Coronavirus
    • Skip to primary navigation
    • Skip to main content
    • Skip to primary sidebar
    • Skip to footer
    • Home
    • Our Firm
      • About Our Firm
      • Team Profiles
    • Estate Planning
      • Arizona Long Term Care (ALTCS)
      • Asset Protection
      • Business and Succession Planning
      • Elder Law & Medicaid Planning
      • Estate and Gift Tax Figures
      • Family-Owned Businesses & Farms
      • IRA & Retirement Planning
      • Incapacity Planning
      • Legacy Planning
      • LGBTQ Estate Planning
      • Pet Planning
      • Probate
      • Powers of Attorney
      • SECURE Act
      • Trust Administration
    • Elder Law
      • Are You A Caregiver
      • Coping With Alzheimer’s
      • Emergency Medicaid & Nursing Home Planning
      • Guardianship & Conservatorship
      • Tucson Medicaid (ALTCS) Planning
      • Tucson Veteran’s Benefits
    • Webinars
    • Resources
      • DocuBank
      • Elder Law Reports
      • Free Estate Planning Seminars
      • Frequently Asked Questions
        • Estate Planning FAQs
        • Frequently Asked Questions for Families Without an Estate Plan
        • LGBTQ Estate Planning Frequently Asked Questions
        • Trust Administration & Probate Frequently Asked Questions
        • Tucson Estate Planning FAQs
      • Is Your Estate Plan Outdated?
      • Latest News
      • Newsletters
      • Pre Consultation Form
      • Professional Resources
      • Published Books
      • Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning for Niches
        • Trust Administration
    • Reviews
      • Our Reviews
      • Review Us
    • Contact Us
    • Blog

    Kinghorn Heritage Law Group, PLC

    Tucson Estate Planning Attorneys

    Connect with us today(520) 529-4000

    Attend a Free Seminar
    Home / General / To Trust or not to Trust?

    To Trust or not to Trust?

    June 23, 2016General

    If you know me, you understand the passion I have for what I do. It is not uncommon for me to ask my friends about their estate plan and how it is working for them. My friends usually tell me they don’t have an estate plan, or ask me what plan I have in place. When I tell them about my revocable living trust, I usually receive blank stares followed by “Do I need one of those?”, “What the heck is a trust?”, “Do I have enough to have a trust?” or “When should I put a trust into place?”

    Before becoming an estate planning attorney, I didn’t see much of a need for a plan. I didn’t have much, my family would take care of my children, and I wasn’t likely to die anytime soon, anyway. I thought verbal instructions were enough. I had no idea what a mess I would have left behind for my family to clean up. Since I have minor children, I needed to plan for them. At the very least I needed to designate guardians to raise my children if I couldn’t.

    I now realize the importance of putting my choices in writing so those decisions are clear and family feuds can be avoided. My family would have my children’s best interest at heart—I have no doubt about that—but each family member has different ideas about what is in the best interest of my children.

    So what is a trust and why do I need a trust?

    A revocable living trust is like a box into which I put everything I own by transferring ownership to the trust. I have the ability to manage it, change its terms and receive benefits from its contents, but I no longer have assets in my individual name. A properly drafted trust will provide protection during my lifetime, avoid a humiliating court process if I am incapacitated, pass assets to my children without probate, and provide asset protection to my children. My trust even provides for my future grandchildren I hope to have some day and, of course, takes into consideration any special needs my beneficiaries may have.

    Now I understand the saying, “I’d rather give a four-year-old than an 18-year-old money; at least she can’t drive anywhere to spend it!”

    Without a trust at my death, my assets would be split equally among my children. Simple enough, but when each turns 18, he or she would get the money outright. By putting what I have in a trust for each of them, I control the terms of distribution. Since I have no idea what the future will bring, I build in protections today that my children may need in the future. Plus, I can always change the terms because I still hold the power to amend my trust.

    In addition, without a trust, in order for the proceeds from the sale of my home to go to my children, my estate must go through probate to transfer title. But now that my home is owned by my trust, my trustee can immediately sell and split the proceeds among my children’s individual trusts, which will in turn be managed by the person of my choosing.

    My comprehensive plan covers all situations, from incapacity to death, but remember that not all trusts are the same, and not all trusts provide these types of protections.


    Allison ManningAllison Manning enjoys helping clients establish peace of mind in their estate plans and building relationships with her clients. If you would like to make an appointment to find out how we can help protect your legacy, call (520) 529-4000, or visit us online at www.KHarizona.com.

    • Author
    • Recent Posts
    Sandi Kinghorn
    Latest posts by Sandi Kinghorn (see all)
    • Should I hold my property as joint tenants with my children? - August 1, 2016
    • Saying Goodbye To A Legend - July 11, 2016
    • Happy Birthday to Medicare - June 27, 2016

    Other Articles You May Find Useful

    Kinghorn Law
    What is the Cost of Dying?
    Kinghorn Law
    Disaster Preparedness: What would you take?
    Kinghorn Law
    We Thought You Need to Know: IRS No Longer Accepts Checks over $100 Million
    Kinghorn Law
    Should I hold my property as joint tenants with my children?
    Kinghorn Law
    Saying Goodbye To A Legend
    Kinghorn Law
    Happy Birthday to Medicare

    Primary Sidebar

    FREE ESTATE PLANNING WORKSHEET

    There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
    • This field is for validation purposes and should be left unchanged.

    Follow Us

    • fb
    • tw
    • ld
    • yt

    Subscribe to Our Blog

    • This field is for validation purposes and should be left unchanged.

    Testimonials

    default image

    In this day and age it is very rewarding and comforting to make a major decision for the long-term security of your family. Over 14 years ago we decided upon the Kinghorn Heritage Family to create our family trust. Through the years it became very evident that this decision was a major and necessary step for a secure future in an ever-changing legal climate. The Kinghorn Family has been a close friend that has always been there to serve our family.

    Gary and Velma T. Client Review September 8, 2020

    default image

    We appreciate the programs presented that keep us informed and updated in today’s internet and financial world. It is a comfort to know that you are only a phone call away if questions arise.

    Robert and JoAnn H. Client Review September 8, 2020

    default image

    We enjoyed meeting all the behind-the-scenes people on your team and want to thank you for the peace of mind you’ve given us and our children.

    M.D. Client Reveiw September 8, 2020

    default image

    What an amazing law firm, where the people I refer to them are handled as good friends, family, and confidantes.

    Eileen E. Client Review September 8, 2020

    default image

    Thank you Allison and Kinghorn Law family for everything you have done to make our end-of-life decisions a reality and stress free. When we think of Kinghorn: trust, peace of mind, professional. Outstanding Law Firm!

    Ken and Cheryl V. Client Review September 8, 2020

    default image

    Very satisfied with your company and staff.

    Robert and Britt O. Client Review September 8, 2020

    default image
    In this month’s alert we examine how your clients, including LGBTQ clients and unmarried partners, can remove over $5 million free from estate tax and how this opportunity may be vanishing soon. Unless Congress takes action before year-end, which most experts think is unlikely, the amount that can be passed free of estate tax will drop from $5.12 million to $1 million on January 1, 2013. For a decedent with an estate of $5 million, this would result in an increase in estate tax of $2,045,000. Earlier this year, President Obama introduced his proposal to lower the estate tax exemption amount permanently from $5 million to $3.5 million and the lifetime gift tax exemption amount from $5 million to $1 million. This would essentially be the same as the law that was in effect in 2009. The maximum estate and gift tax rate would be fixed at 45% (up from 35% currently). The current “portability” provision, allowing the survivor to use the predeceasing spouse’s unused exemption, would be made permanent. Executors and lifetime donors would be required to report valuation and tax basis information to the IRS. This would enable the IRS to verify whether income tax gains are properly reported upon the future sale by the beneficiary. The President’s proposal would also tighten or eliminate many popular estate tax reduction strategies such as the Family Limited Partnership (“FLP”), Family Limited Liability Company (“FLLC”), Grantor Retained Annuity Trust (“GRAT”), and Sale to Defective Grantor Trust. With the pending election and the looming deficits, both the Republicans and the Democrats seem equally averse to tackling this subject prior to the election. If Congress fails to act, or if the President’s proposal is adopted, there would be tremendous savings available to taxpayers who act now to utilize the current, perhaps short-lived, $5.12 million exemption amount before it disappears at year-end. Our previous alerts regarding using the current exemption amount prior to expiration have primarily concerned planning for married couples. However, the planning options available to “lock-in” the current $5.12 million exemption are available equally to gay and lesbian couples, as well as opposite sex unmarried partners. LGBTQ couples (whether or not married) and unmarried couples are not eligible for the unlimited marital deduction that postpones estate taxation until the death of the surviving spouse for traditional married couples. Because of this, it is critical that LGBTQ and unmarried partners with substantial wealth see an estate planning attorney who is experienced with these planning strategies in order to take advantage of the current opportunities available to them. Failure to complete this planning before year-end may result in the surviving partner being saddled with substantial estate tax at the death of the first partner to die. This will result in a decrease in the income and assets available to the surviving partner. Engaging in planning today to “lock-in” the $5.12 million exemption amount can preserve the income and assets available to the surviving partner. Our office focuses on estate planning strategies for clients of all wealth levels, including clients who will be subject to estate tax at death. We also have extensive experience in estate planning for LGBTQ couples and unmarried opposite sex partners. Other services we offer include planning to escape generational estate taxation through the use of generation-skipping or dynasty trusts, asset protection strategies, as well as estate and trust administration. As a member of the American Academy of Estate Planning Attorneys, our firm is kept up to date with information regarding tax developments as well as cutting edge planning strategies for persons of all wealth levels. You can get more information about a complimentary review of your clients’ existing estate plans and our planning and administration services by calling or by visiting our website.

    Chandler V. Client Review September 8, 2020

    default image

    Estate Planning attorneys are sometimes criticized for offering needlessly complex, 'canned' solutions. This never has been the case with Kevin. The documents he created were comprehensive when appropriate and surprisingly simple when suitable. In every case, they were individually crafted to meet our unique needs.

    Rich D. Client Review September 8, 2020

    << Prev
    Next >>

    Where We Are

    Kinghorn Law
    3573 E. Sunrise Drive, Suite 209
    Tucson, AZ 85718
    Phone: (520) 529-4000

    See Larger Map
    Get Directions

    Footer

    • Speaker Connection
    • Advantages of Working With Our Firm
    • Disclaimer
    • Privacy Policy
    • Sitemap
    • Contact Us

    Connect with Us

    • fb
    • tw
    • ld
    • yt
    footer-logo


    © 2021 American Academy of Estate Planning Attorneys, Inc.

    Attorney Advertisement