Revocable trust
·1 min
I recently worked with an attorney to setup a revocable trust, here in Washington. Some notes from that:
- What happens when someone dies and leaves their spouse behind? There is portability or unlimited transfer to spouse at the federal level, i.e. the estate tax limit of the latter automatically doubles. You need a credit shelter trust to achieve the same in Washington.
- 3 roles in a trust:
keep in mind that while you are alive, you are the Grantor, Trustee, and Beneficiary of the Trust. As such, whenever it is talking about any of those roles, it pertains to you. Anything you could do with your assets before you put them into the Trust, you can still do while in the Trust. The restrictions only apply once you are incapacitated or have passed away, and a new person is acting only in the role as Trustee (not Grantor or beneficiary).
I also considered a corporate trustee (such as Fidelity or Vanguard) and had the following questions on that:
- Can the trustee handle beneficiaries outside the US?
- Can one company handle accounts on another? How will they know the exhaustive list?