Posted by In regions such as China and Hong Kong, the word "trust" is usually mixed with "family trust fund" and "trust investment". It can be traded in the market by subscription, which is more like an investment product.
but"Trust"The two words have completely different meanings in the United States.If we accept the definition of a thing in the market of other countries or regions, then we will form a mindset.At this time, when we encounter things with the same title in another country with a completely different social basic system-such as "insurance" and "trust", we will think and understand in the old way-this Cognitive models are very easy to miss many opportunities, which make us fall into cognitive contradictions and conflicts, and it is also very detrimental to maintaining and maximizing self-interest in the new market environment.
In this article, insurGuru©️ Fortune College will introduce the public education manuals on the most common "pre-living trusts" issued by the California Bar Association.What is a living trust in the United States, what is the meaning of a trustee, the purpose of establishing a trust, the cost of establishing a trust, and how to find professional American trust lawyer services.
What is a living trust?
Living trust, The English name is:Living Trust.It is a common, written legal document that can partially replace a will.
We can equate the establishment of a living trust as starting a virtual company.The tax number of the trust is your personal social security number.
After writing a lifetime trust, you can deliver your personal assets (such as real estate, stocks, life insurance policies, etc.) to the trust. The trustee will manage these assets for you before your death and transfer them to your beneficiaries after your death.
Most people will appoint themselves as the trustee to manage the trust assets.
The advantage of adopting this approach is that even if the assets have been delivered to the trust, we can still control 100% of our assets during our lifetime; we can also appoint a successor trustee (individual or institution) in order to manage this trust on our own At the time, responsible for managing our assets.
The “living trust” introduced in this article is a Revocable Inter Vivos Trust (Revocable Inter Vivos Trust, also known as a grantor trust), which can be set by the setter (generally referred to as the settlor, grantor, or property grantor) when he is still capable of doing things. , To be revised or revoked at any time.
What does trustee mean?
The meaning of the trustee as the entrusted manager can be understood as the hired company manager.Under the relationship of trust and trust, not only do they bear heavy responsibilities, but also must comply with extremely high standards. For example, without our explicit permission, the trustee shall not use the assets in the trust for personal purposes or benefits.
On the contrary, the trustee can only keep and use the assets in the trust for the benefit of the beneficiaries of the trust.
The role of a living trust
Our lifetime trust deed has the following characteristics:
• Give the trustee the legal authority to manage and control the trust assets.
• Make it clear that the trustee managed the assets in the trust for our benefit during our lifetime.
• Designate a beneficiary (individual or charitable organization) who will inherit the trust assets after our death.
• Instruct the trustee how to manage and distribute trust assets, and give the trustee specific powers and authority to manage and distribute trust assets.
Living trust is a very important part of estate planning. In many cases, living trust holds the most important position.
The most common purpose of setting up a living trust
There are two most common purposes for setting up a lifetime trust in American society:
1. To circumvent the heritage certification process
2. Protect the case where the heir is a minor child
Costs and prices of U.S. living trusts
set upThe cost of a living trustIn particular, the cost of family trusts is often determined by many factors such as the amount of assets to be managed, the complexity of management, and the quality of the trustee’s service.There is no fixed price.
We can buy professional trust software or guide books ourselves. A computer or a piece of paper and pen can complete the establishment of a lifetime trust, and the expenses will not exceed $100.However, this DIY situation does not apply to most people.
T.L.T.(TheLifeTank.com American Life Insurance Guide) In the "Wealth Inheritance" column navigation at the top of the website, it provides the public with a professional third-party service of online self-help establishment of wills and self-help establishment of living trusts. This service is provided by a well-known non-profit inheritance service. The agency FreeWill provides it free of charge.
Another common practice is to use professional trust and will consulting services, such as Trust&Wills, which provides personalized and professional online trust formation services at a cost of $399.
In the basic reference price provided by Nolo and LegalZoom, hire an American lawyer to draftThe cost of a living trust, Usually between $1,000 and $1,500, if it is a couple, the price is between $1,200 and $2,500.
Although you can, if you need more information or services about estate planning and wealth inheritance,American Life Insurance GuideIt is recommended to ask for free materials directly from the state bar associations.
OnAmerican Life Insurance GuideIn the survey in the community, if the insured establishes a lifetime trust, it is purely for holdingLife insurance policy assets, Then set upThe cost of a living trustProbably between $500 to $1,000.
>>>Recommended reading:[Evaluation]How to use a family insurance trust to achieve an annual retirement income of $30 and wealth inheritance planning?
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