• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Potter Law Firm

North Carolina and Kentucky Estate Planning Attorneys

phone iconNC (704) 944-3245
KY (606) 324-5516
Attend A Free Seminar - KY Attend A Free Webinar - NC/SC THIS IS AN ADVERTISEMENT

  • Home
  • About Us
    • About Our Firm
    • Attorney and Staff Profiles
  • Practice Areas
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • Pet Planning
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Nursing Home Planning
    • Veterans Benefits
  • Communities We Serve
    • Kentucky
      • Boyd County
        • Ashland
        • Florence
      • Kenton County
        • Covington
        • Fort Mitchell
        • Independence
    • North Carolina
      • Mecklenburg County
        • Charlotte
        • Davidson
        • Huntersville
  • Resources
    • Definitions
    • DocuBank
    • Elder Law
      • Elder Law Links
      • Elder Law Reports
      • Local Elder Law Resources
        • Ashland Elder Resources
        • Covington Senior Resources
        • Huntersville Elder Law Resources
        • Independence Senior Resources
    • Elder Law Reports
    • Emergency Legal Documents
    • Free Estate Planning Seminars
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • IRA & Retirement Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Pet Planning
      • Trust Administration & Probate
    • Is Your Estate Plan Outdated?
    • Kentucky Probate Resources
      • Ashland, Kentucky Probate Resources
    • Newsletters
    • North Carolina Probate Resources
      • Huntersville, NC Probate Resources
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Elder Law Reports
      • Estate Planning for Niches
      • Trust Administration
  • Contact Us
  • BLOG
Home » Estate Planning » Everything You Need to Know about a Living Trust

Everything You Need to Know about a Living Trust

January 12, 2018 by John Potter

Charlotte living trust attorneysHave you been wondering what the term “inter vivos trust” means and why it should matter to you? As it turns out, this type of trust is one that you’ve probably read about in your research, but it is more commonly known by its other name – the living trust. Our Charlotte living trust attorney will explain what you need to know about this type of trust.

How a revocable living trust works

The revocable living trust is an estate planning device that you should explore before you make any final decisions. Contrary to a widely held belief, you do not have to be a multimillionaire to benefit from the creation of this type of trust. Plus, you do not surrender control of assets you convey into a living trust. You can act as the trustee while you are living, and you can also be the initial beneficiary.  And you can change the terms of the trust or even revoke the trust entirely at any time.

The Revocable Living Trust

A revocable inter vivos trust is a powerful legal agreement that can be used for a variety of different purposes. This trust involves a trustor (or grantor) who transfers his assets into the trust for the benefit of someone. That trustor can name himself as the trustee and keep control over the assets while he is alive. He can even write the terms of the trust so those assets are used for his own benefit until he dies, at which time they will be directed for the benefit of the beneficiaries the trustor names. A successor trustee is designated to take control when he dies.

The benefits of revocable trusts in general

There are some special advantages to revocable trusts. They don’t require the trustor to give up control over his assets since he can serve as both trustee and beneficiary during his lifetime. Moreover, these trusts can be revoked at any time so even the transfer of ownership can be reversed if needed.

Revocable trusts can provide a useful way to transfer assets to heirs when you die since the terms of the trust will determine which beneficiaries receive which parts of the estate, when they will receive it, and how they will receive it. These trusts can be used for a variety of purposes due to their great flexibility, including divorce or creditor protection for beneficiaries, spendthrift protection, special needs protection, or tax protection.

The Irrevocable Living Trust

If you’re more interested in greater tax advantages and stronger asset protection, the irrevocable trust may be a better option. While many people are reluctant to use irrevocable trusts because of the limited ability to change them once they are created, they have significant benefits. For example, an irrevocable trust can protect against estate taxes by removing assets from your estate. Since those assets are no longer owned or controlled by you, they are not counted when your estate’s value is calculated for tax purposes.

The irrevocable trust can also prevent assets from being counted by Medicaid when you’re trying to qualify for nursing home benefits. Of course, to make the most effective use of any trust for Medicaid planning, it is best to begin your efforts early. That will help you to minimize any chance that you might run afoul of the program’s look-back period and end up incurring an ineligibility period.

Specific types of living trusts

Some specific types of trusts can be used to accomplish specific goals. Charitable trusts can provide funds to a charity for a set period of time, with whatever is left over at the end of that time going to your heirs.  You can even set up a trust that provides income to you until you die and then delivers the remaining assets to your favorite charity.

A spendthrift trust can be a useful way to ensure that your heirs don’t frivolously spend their inheritances. These trusts can provide measured distributions over time, or simply protect the inheritance from the heir’s creditors. You can even create a trust to manage your assets in the event that you are incapacitated. That can be an effective way to protect your estate from a conservatorship in case of a lengthy period of incapacitation. You can also create trusts to care for pets or manage other planning needs that are difficult to address through traditional wills and powers of attorney.

Join us for a FREE seminar today!  If you have questions regarding living trusts or any other estate planning matters, please contact the experienced attorneys at The Potter Law Firm for a consultation. You can contact us either online or by calling us at (704) 944-3245 (Charlotte, NC or Huntersville, NC), or for individuals in Kentucky, (606) 324-5516 (Ashland, KY) or (859) 372-6655 (Florence, KY). We are here to help!

  • Author
  • Recent Posts
John Potter
Latest posts by John Potter (see all)
  • What You Need to Know about the Medicaid Look-Back Rule - January 3, 2023
  • How to Pass Down Your Legacy in Your Estate Plan - October 3, 2022
  • Practical Steps to Take after Receiving a Terminal Diagnosis - September 30, 2022

Filed Under: Estate Planning

Other Articles You May Find Useful

How to Gift to Your Grandchildren in Your Estate Plan
pour-over will
What Happens If I Leave Property Out of My Living Trust?
estate tax
2022 Estate Tax Exclusion Has Been Set
QTIP trust
How Can You Protect Your Children’s Inheritances If You Get Remarried?
probate
Are There Any Probate Shortcuts in North Carolina?
life estate
What Is the Purpose of a Life Estate?

Free Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
Texting Permission

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Subscribe to Our Blog

  • This field is for validation purposes and should be left unchanged.

Testimonials

default image

Overall The Potter Firm was very professional. They took what could of been a very complicated process and were able to break it down so it was a lot easier to understand. We are confident we now have made the right decisions in our estate planning. Good firm to work with.

DKS & KMS Client Review August 28, 2020

default image

John Potter has been a real pleasure to work with. He is very knowledgeable and explains things in a very simplistic manner so the average person can understand how/why the laws are written. He is very attentive and asks questions in such a way that not only helps him understand your goals, but also helps you think about what type of goals and expectations you should be considering. Exemplary client service.

David J. Client Review August 28, 2020

default image

My husband and I selected Ms. Potter to assist with our small business. She responsive and attentive every time I have a question or need assistance, and is extremely knowledgeable and able to answer any legal question I have had. I know I can count on Ms. Potter for all of my business legal needs and I would highly recommend her to anyone needing legal assistance with such.

Jillian Client Review August 28, 2020

<< Prev
Next >>

Where We Are

Ashland

ASHLAND
1620 Carter Avenue
Ashland, KY 41101-7631
Phone: (606) 324-5516
Fax: (606) 324-4766

Charlotte

CHARLOTTE
15720 Brixham Hill Avenue
Suite 300,
Charlotte, NC 28277
Phone: (704) 944-3245

Huntersville

HUNTERSVILLE
11330 Vanstory Drive
Huntersville, NC 28078
Phone: (704) 944-3245

Northern Kentucky

NORTHERN KENTUCKY
7310 Turfway Road
Suite 550,
Florence, KY 41042
Phone: (859) 372-6655

Office Hours

Monday8:30 AM - 4:30 PM
Tuesday8:30 AM - 4:30 PM
Wednesday8:30 AM - 4:30 PM
Thursday8:30 AM - 4:30 PM
Friday8:30 AM - 3:00 PM

Map/Location

potter_sidbr_map
potter law logo
  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Terms of Service | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc. THIS IS AN ADVERTISEMENT