Joint Revocable Trusts
While it seems as if it is a given that a property would automatically skip probate and go to a joint owner, a creditor can attach to the property to satisfy a debt if it isn’t properly protected. A property can be owned by any two people. For instance, it can be owned by a parent and their child. When a revocable trust is in place, the property held within the trust isn’t subject to probate administration at the time of the grantor’s death. However, there are things to know and that’s where an experienced Minneapolis joint revocable trusts lawyer can help.
Helping You Make The Right Decisions
It is important to make the right decisions for yourself and your family. When dealing with something such as joint tenancy, there is something that has to be considered and that is that creditors can attach to the tenant’s property in order to satisfy a debt. For example, if a tenant is in default, his or her creditors can use a “partition proceeding” to sue for interest in the property. In other words, the property has to be sold to satisfy the debt.
Fortunately, Mr. Gross is in the business of wealth preservation and distribution and can advise you and help you when dealing with creditor-related matters.
Finding The Right Solutions
A joint revocable trust works like this:
Upon the death of the first spouse, he or she will have the power of appointment over the assets in the joint revocable trust. In other words, he or she can appoint the property in the trust to himself or herself, to creditors, to the estate, or to the creditors of the estate. When the first spouse passes away, the trust becomes an irrevocable trust. The surviving spouse is the sole trustee and the primary beneficiary of the trust. Children are secondary beneficiaries. Distributions from the trust are limited to what is needed. For instance, the distribution may be needed for providing support, money for health care costs, or money for education.
Many more steps to this process can be included, such as the establishment of a “Family Trust” that is held by the marital trust.
There may also be gift and estate tax matters that need to be properly addressed. Mr. Gross can address these matters with you, ensuring that you have a solid estate plan in place that can include a joint revocable trust between you and your spouse.
Contact A Minneapolis Joint Revocable Trusts Lawyer
A joint revocable trust is a way to ensure that property goes to the person who has equal ownership in a piece of property or group of assets. If you are in need of a good estate plan, contact Gross Law Office today at 612-245-4749 to learn more.