Living Trust Idaho Explained
Two of the biggest reasons many hesitate to set up a living trust are perceived costs and growing misinformation about living trusts. This article has been written to help you learn more about living trusts and help you create one at a low cost!
Living Trusts in Idaho
In Idaho, the average cost of setting up a single living trust or a joint living trust ranges between $2,000 to $2,500. For those tight on a budget, creating a living trust may be out of the picture. Luckily, services like DoNotPay, which is dubbed the Robinhood of the internet, can help you get a standard, tailor-made revocable trust in record time and for a fraction of the cost!
How to Set Up a Living Trust With DoNotPay
- Create a DoNotPay account and go to the “Revocable Living Trust” service
- Enter your desired trustees and beneficiaries
- Select assets and properties to add to trust
- Tell us what will happen to assets not included in the trust
- Provide the state you will notarize your revocable trust in
DoNotPay will create a downloadable living trust for you in seconds!
What Is a Living Trust?
Much like businesses plan towards succession when a leader retires, a living trust is one way individuals or a group can plan for their inheritance and assets when they die or can no longer make decisions on their own.
A living trust is not the only way to plan for your estates. There are many other ways, like wills, with which people can use to dictate what happens to their properties after their demise. A revocable living trust, however, is one of the most popular estate planning tools in the U.S because of its flexibility, ease of use, and active timeline. A living trust becomes active while you are still alive - hence the word “living” in it.
Types of living trusts
Generally, there are two types of living trusts: a revocable trust and irrevocable trust. A revocable trust takes effect the moment you set it up and gives you the ability to change your trust with no needed permission as you deem fit. An irrevocable trust becomes a separate tax entity and prevents you from modifying it, except with the consent of all parties involved in the trust. Both a revocable and an irrevocable trust can be set up individually or jointly with a spouse or family member ( joint trust).
How Does a Living Trust Benefit You?
A living trust helps you:
|Skip probate||Probate is the rigorous process of succession courts deciding the transfer of your assets and property after your death. Probate occurs with or without a will, but not with a well-crafted living trust.
The probate process can end up gifting all your assets to someone you’d rather not have given it to.
|Avoid probate fees||Idaho has a fast and simplified probate process in place, so most people who do not really have any special beneficiary in mind may not mind going through a probate process.|
|Avoid estate taxes||Though Idaho does not have a state estate tax in place, you may also need to worry about federal estate taxes if you own assets that are worth over $11.58 million as a single individual or $23.4 million as a joint couple.
An irrevocable trust can help you avoid such a tax by transferring some portion of your asset or estate into the trust.
|Protect your house from Medicaid evaluation||If you set up an irrevocable living trust at least 60 months before a Medicaid evaluation comes up, you can save your estates from being included in a Medicaid evaluation.|
|Preserve your asset for a minor beneficiary||A living trust can also help you specifically assign a guardian to a beneficiary who has yet to attain the age of consent. You can also specify at what age they become qualified to inherit the trust and how you want it to be distributed to them.|
|Privacy||A living trust gives you privacy of affairs between you and the beneficiaries.|
How to Set Up a Living Trust on Your Own
There are people who already have a will but choose to combine it with a living trust to cover all loopholes and get the best experience. Whatever choice you make, you can start setting up your living trust by following these steps:
- Select an individual or an institution as a trustee
- Make a list of your beneficiaries and decide their benefits
- Define assets to be included in the trust
- Fill all information into a living trust form
- Draft any other specific instructions for the trustee
- Visit a state court to notarize your living trust form
- Effect all asset title changes that transfer them to the trust
- Safely keep your completed trust document
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