Posted by: Lee Phillips
Bank accounts, safe deposit boxes, stock accounts, everything you sign your name for needs to be assigned to the trust. Technically the assets aren’t “assigned” to the trust. Ownership of the assets is changed from you to the trust.
In the bank situation, you need to take a copy of the signed trust down to your bank. (Actually, if you have it, you will take a copy of the certificate of trust or certification of trust to the bank.) The bank ...
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Lee Phillip’s Boot CampLee Phillip’s Boot Camp is held twice yearly in Salt Lake City. We want to reward our FaceBook friends; here’s what we’ve got going on:
Lee Phillip’s boot camp going on in Salt Lake City, UT and he would love to have you come! So here’s what he’ll do. First, go to our Continue Reading →
Posted by: Lee Phillips
Q. Can I put my stocks into a family trust account to protect them from creditors or legal suits? I have accumulated these stocks for retirement but would like to have some control over them.
A. Yes, you can set up and use a trust for almost any purpose, including holding only your stocks and bonds. However, if you are trying to get liability and asset protection you may be better off to hold your investments in a different entity. Depending ...
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Check out the video that goes over how to avoid probate. Not as easy as you – or your lawyer – thought!
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Q. Can an insurance company use your FICO score to raise your insurance premiums up on your personal residence if the trust owns the property? I plan to cancel the policy and have it re written in the trust name.
A. Insurance companies have figured out that your FICO score (FICO is an acronym for the Fair Isaac Corporation, the creators of the FICO score.) is directly related to your risk as a driver or causality risk. So, your FICO score is ...
Continue Reading →Posted by: Lee Phillips
Revocable Trusts Aren’t Asset Protection Trusts Lots of people establish a living revocable trust thinking they are creating some sort of a domestic asset protection trust. A revocable trust is not an asset protection trust. Living trust asset protection is pretty much a myth. Whether the trust is a living trust, family trust, or another type of trust you can conjure up, if it is revocable, it does not protect its assets ...
Continue Reading →Posted by: Lee Phillips
A spendthrift trust definition is kind of ambiguous. There aren’t really spendthrift trusts, like there is an insurance trust, children’s trust, living revocable trust, or charitable remainder trust. Let’s start with the definition of a spendthrift.
A spendthrift is someone who can’t manage money. A spendthrift just lets money flow through their fingers. In order to protect a child or someone from their own money mismanagement skills, (some of them are very skilled at money mismanagement) a spendthrift provision ...
Continue Reading →Posted by: Lee Phillips
When you set up a living revocable trust, you’ll almost always be the original trustee. When you die, you’ll name a successor trustee. When your parents die, you may be named as their successor trustee. Nobody ever sits you down and explains the trustee liability you are taking on.
All trustees are bound by fiduciary duties. As the trustee of your own trust or as successor trustee of your parents’ trust, you are under strict obligation to protect the trust accounts ...
Continue Reading →Posted by: Lee Phillips
Setting up a trust is easy, if you know what to do. That’s the way it is with everything. If you know what to do, it’s not that hard. Lawyers go to school for an extra three years to learn how to speak and write so you can’t understand them. Once you know the language, drafting a trust is not really a mystery.
Setting up a trust requires a shift in thinking. ...
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“What’s the difference between revocable and irrevocable trusts?” It’s not a trick question. The revocable trust is revocable and the irrevocable trust is irrevocable. I don’t mean to be silly, but that’s the difference.
Ok, there are other differences when it comes to the revocable vs. irrevocable trust decision. The income tax, estate tax, and asset protection issues all hinge on whether you have a revocable trust or irrevocable trust.
