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“Living Trust”

man and wife / term insurance

When should I review or update my living trust?

You should review your plan when:

 


• You get married or divorced
• There are major changes in your family (births or deaths)
• Your children come of age
• You receive a windfall or significant loss of assets
• You no longer find your choice of guardian or executor appropriate
• It has been 3 years since your last review

Avoiding Probate

• Living Trusts avoid probate since they are completely private. Because a trust is recognized as a separate legal entity, distributions can be made by a Trustee to named beneficiaries without any involvement from the courts.
• The courts maintain no control over the Trust's assets, and do not tie up the assets in a lengthy and costly probate process. The Trustee simply distributes assets to named heirs, but only if those assets have actually been placed inside the Trust.
The Parties Involved
• The Living Trust document itself names three different parties. The individual (or couple) that establishes the Trust is named the Grantor (also referred to as the Trustor).
• The Trustee is the person named by the Trust as the controller of the Trust's assets (and in many cases, the Trustees are the same people as the Grantors).
• On the receiving end, the Beneficiaries are the heirs that will benefit from the Trust once the Grantor's have passed away

How much life insurance will you need?

If you were not here tomorrow, how much money would your family need to replace your income?
How much would it cost to pay off your mortgage and other debts?
How much would your loved ones need to afford ongoing and future financial needs?
How can you take care of the other business partner’s family if that partners dies and their family Is not interested in being a part of your business?
Wouldn’t your business want a nice sum of money at the end of the policy term; or, if your circumstances change, a portion of the premiums back before the term is completed?

 

Shawn Rabban (310) 714-5616


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