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A timely update on living trusts
The fall season is traditionally when clients finally take care of their living trust and estate plans. Everyone has thought of taking care of this critical business, but there always seems to
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Grandchildren included; children’s spouses excluded or included
• Excludes estranged children or other relatives
• Avoids the perils of joint tenancy
• Special needs protections
• Protects against the loss of Medicare and SSI benefits or government reimbursement if a beneficiary acquires a
disability before your death
Includes assets in all states and avoids multiple state pro- bate
Contains a no-contest clause
Provides creditor protection for beneficiaries
Revocable
Easily amended
Readily adapted to the laws of another state if you move
be something more important to do. Hope- fully, this update gives you some valuable information and an incentive.
What is a living trust?
FOP
TOM TUOHY
A living trust is a written, signed legal docu- ment that allows you to privately pass your assets to your family, friends or charities after your death. It also serves to
protect you in the event of incapacitation. Some important points to know:
• If you die or become incapacitated and have assets in your
name, they are subject to probate. These include bank ac- counts, investments, real estate, stocks and bonds and minor beneficiary proceeds.
• Probate Court can’t handle every person’s estate. The av- erage time for completion of the probate process is 18 months to two years.
• A fully funded living trust completely avoids probate and is administered privately.
• The assets of minor children remain in probate until age 18, with all assets released to them at that age.
• A living trust plan should contain health care and finan- cial power of attorney documents and a pour-over will.
Why do you need a living trust?
A living trust allows you to control and protect your estate, now and after your death. By law, no one can sign your name. Therefore, if you acquire a disability, signing your name requires a previously executed financial power of attorney. Your financial power of attorney revokes by operation of law at your death.
With no power of attorney, you are subject to guardianship and conservatorship of your assets. Accordingly, if you have assets in your name after your death, a probate estate must be opened. A judge names an executor to administer your estate.
Last will and testaments do not avoid probate. A will is your wishes for who receives your property after your death. A will is filed in court within 30 days after your death.
How does a living trust avoid probate?
You change the title of your assets to your living trust name. Consequently, they are not subject to probate while you are liv- ing or at your death. Your successor trustee administers your es- tate privately and efficiently.
Notably, the process could take only a matter of weeks or as long as it takes to transfer your assets to your beneficiaries. Does a living trust protect my assets?
A living trust protects your assets from the time, expense and family stress of probate. A living trust does not protect against liability claims for as long as you are the trustee. However, you have numerous ways to combine a living trust with sound asset protection strategies.
A living trust provides complete asset protection for your chil- dren and beneficiaries if they are subject to a lawsuit or divorce. What are the other advantages of a living trust?
• Protects you in the event of your disability
• Organizes lifetime management of your assets
• Contains specific instructions for inheritance
• Protects the wishes of the first spouse to die
• Provides for blended families from prior marriages
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Benefits Plan
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Call my office today to lock in your FOP 33 percent reduced
rate for a complete living trust estate plan.
Police Benefits Plan
For an expanded presentation of asset protection strategies, visit and register with the Police Benefits Plan at www.fopbene- fitsplan.com or call 1-312-559-8444. Receive regular updates on strategies to protect what you have earned. Registration for FOP members and families is free.
Tom Tuohy is the founder of Tuohy Law Offices and the FOP Bene- fits Plan. He has been a police lawyer for more than three decades. His father was a CPD detective, and his grandfather was CPD chief of major investigations. You can reach Tom at 312-559-8400.
CHICAGO LODGE 7 ■ SEPTEMBER 2021 69