Frequently Asked Questions

DOES THE LIVING TRUST PREVENT YOU FROM BORROWING ON ASSETS WITHIN THE TRUST?

No, the trust does not restrict your rights to borrow in any way; although, the lender may want to examine a copy of the trust documents.

DOES THE LIVING TRUST PROTECT ME AGAINST CREDITORS?

No, the Living Trust does not automatically act as a shield to protect you from your creditors.

REVOCABLE OR IRREVOCABLE?

A Living Trust can either be revocable or irrevocable.  Revocable means you can cancel or change its terms.  Irrevocable means it cannot be changed.

WHY DOESN'T EVERYONE HAVE A LIVING TRUST?

The majority of people don’t have the knowledge or information about Living Trusts.  People often don’t plan for the future and some hesitate to discuss what happens at death.

MUST A SPECIAL INCOME TAX RETURN BE FILED?

No special income tax forms are required as long as a married couple or one individual alone is receiving all the income from the trust.

DOES MY WILL PREVENT PROBATE?

No, the Will does not prevent or avoid probate.  All the assets passing through the Will also pass through probate.  As previously emphasized, probate is expensive, time consuming and open to the public’s viewing.  It also acts as a “magnet” for creditor’s claims.  The majority of people choose to avoid it.  You can avoid the problems of probate with a revocable Living Trust.