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PROBLEMS WITH UNFUNDED REVOCABLE LIVING TRUSTS
HOWARD H. COLLENSGALLOWAY AND COLLENS, PLLC
A Revocable Living Trust is intended to:
Hold assets during a person’s life
Provide for administration upon incapacity
Provide for administration upon death
Avoid probate
A Trust Is Like A Bucket…
It only controls those assets that are titled into it
Certain images and/or photos on this page are the copyrighted property of 123RF Limited, its Contributors or Licensed Partners and are being used with permission under license. These images and/or photos may not be copied or downloaded without permission from 123RF Limited.
What Problems Arise If Certain Assets Don’t Make It Into The Bucket?
Certain images and/or photos on this page are the copyrighted property of 123RF Limited, its Contributors or Licensed Partners and are being used with permission under license. These images and/or photos may not be copied or downloaded without permission from 123RF Limited.
Problems During Life
Upon incapacity of Settlor, may require establishment of Conservatorship through Probate Court
Asset is not controlled by Trustee
Problems with Power of Attorney Agent who is different than Trustee
Common Problems Post Death
Blank Beneficiary
Lost Deed in the Drawer
Unintended Joint Ownerships
Certain images and/or photos on this page are the copyrighted property of 123RF Limited, its Contributors or Licensed Partners and are being used with permission under license. These images and/or photos may not be copied or downloaded without permission from 123RF Limited.
Consequences
Probate Court involvement
Unintended control of the estate
Unintended distribution patterns
Longer administration
Shorter administrationCertain images and/or photos on this page are the copyrighted property of 123RF Limited, its Contributors or Licensed Partners and are being used with permission under license. These images and/or photos may not be copied or downloaded without permission from 123RF Limited.
A Caveat
Not ALL assets should go into the Trust Pre-tax investments like IRAs and
401ks Special Circumstances Intended Joint Ownerships Ladybird Deeds
Certain images and/or photos on this page are the copyrighted property of 123RF Limited, its Contributors or Licensed Partners and are being used with permission under license. These images and/or photos may not be copied or downloaded without permission from 123RF Limited.
Optimal Funding Times
At the Creation of the Trust Advantage of getting it done Possible loss of protection
Annual review Coordination by Attorney, CPA, Financial
Advisor At Death
Beneficiary DesignationCertain images and/or photos on this page are the copyrighted property of 123RF Limited, its Contributors or Licensed Partners and are being used
with permission under license. These images and/or photos may not be copied or downloaded without permission from 123RF Limited.
Howard H. CollensGalloway and Collens, PLLC
26075 Woodward Ave, Suite 200Huntington Woods, Michigan 48070
248.545.2500GallowayCollens.com
Howard@GallowayCollens.comTwitter: @howardcollens @probatelawmi
@realestatelawmi
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