What Is the Cap of Money for a Living Trust?
Living trusts help people transfer property or financial ownership without extensive probate costs. The revocable trusts are generally set up by an estate planner. A monetary cap on living trusts exists in some states.
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Definition
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The living trust allows property and monetary estate items to pass to your heirs after your death, bypassing probate court in most states. It is called a living trust because it is created while all involved parties are living.
Revocability
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The grantor (you) can revoke or change a living trust, like a will.
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Financial Obligations
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Living trusts often require maintenance fees, for keeping them current and executable, and will not generally reduce income or estate taxes.
Financial limitations
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Monetary caps on living trusts vary by state. Some have no cap; some limit the amount allowed so probate laws are not abused. Your financial planner will assist with local requirements.
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