An increasing number of people are utilizing the revocable living trust as the primary document in their estate plans. A revocable living trust is an entity created during lifetime in which an individual (called a trustee) holds legal title to property on behalf of a beneficiary, who is typically the individual establishing the trust (or the grantor).

It is a revocable trust because the grantor, at all times and for any reason, retains the absolute power and right to revoke the trust, or to otherwise amend or change the trust terms in any fashion. In addition, the grantor may withdraw the trust assets at anytime by taking the properties back into his or her individual name.

The living trust is beneficial because it permits an individual to transfer title of his or her assets now, but that transfer is not to the individual's beneficiaries, but rather to the trust entity. In fact, the re-titling of assets during lifetime is generally considered to be the revocable trust's principal advantage since assets held by the trust will not be subject to court supervision. Furthermore, the grantor typically serves as initial trustee so as to maintain complete control over the management of the assets.

In the event of an incapacity or illness, a successor takes over as trustee to manage the trust and otherwise provide for the grantor, without the necessity of seeking the appointment of a legal guardian to take title to his or her assets.

Upon death, the successor trustee would be in charge of the assets without the necessity for probate proceedings. If probate were required, delays in transferring the properties to one's family and the potential for additional legal, accounting and court costs could result. Without court involvement, the trustee can expeditiously transfer the assets in accordance with the grantor's wishes, which will remain private, as a trust agreement need not be deposited with the probate court at death.

The trust will often contain significant tax planning provisions as well as terms of ongoing trusts for the grantor's family. This arrangement could permit the grantor's assets to be kept together in one piece for the family's benefit for a period of years. In addition, the trust could also provide for the protection of the properties from creditors or claims against the family.

While the revocable trust will, in effect, take the place of a Last Will and Testament, in that the trust will provide for the disposition of the grantor's assets at death, a Will is nonetheless a necessary instrument in every estate plan. If a trust is established, but one's assets are not properly transferred to the trust during lifetime, a Will would be required to direct the disposition of assets at death. In an estate plan that includes a revocable trust, a Will could merely provide that any assets that might be titled in a grantor's individual name pass to the trust to be held by the successor trustee under the general provisions of the grantor's estate plan. Moreover, a Will would name a guardian for any minor children.

Notwithstanding the advantages of the revocable living trust, it is not appropriate or necessary in every instance. Therefore, any person interested in exploring the applicability of a revocable trust in their estate plan should consult their attorney.

By: Joshua Keleske
Joshua T. Keleske, P.A. proudly serves families in the Tampa Bay area with their estate planning, estate and trust administration, and business planning needs. If you have questions regarding how we can be of assistance to you and your family, please contact us at anytime at 813-254-0044. We are happy to answer your questions and arrange for an appointment to speak with you.

Please also visit http://www.trustedcounselors.com to learn more about Joshua T. Keleske, P.A.

"Power of attorney" is a legal tool that allows another individual the authority to act as a person's legal representative. This gives that person the power to make binding legal and financial decisions on a person's behalf.

It is not exceptionally difficult to find forms to grant someone the power of attorney via the internet, but there is typically not a lot of explanation of what a power of attorney is. In addition, there is very little information concerning when a person needs a person to act as power of attorney or even what type of power of attorney to choose. These are very difficult decisions to make as giving the power of attorney to someone gives that person considerable power over your life. Because an individual with power of attorney has the ability to sign a different person's name to legal contracts, careful consideration should be given to choosing a person and whether or not limits should be placed on how long the power of attorney will last and what limits should be imposed on a person's powers.

There are, broadly, two basic types of powers of attorney. A "general" power is unlimited in both its scope and in its duration. This granted type of power permits the named individual to act as a person's legal representative in relation to all financial matters until the power is revoked.

A "specific" power creates limits on a person's named representative. It is possible for a "specific" power to bind a representative's powers to one single type of conduct or even a single transaction. As an example, the representative could be granted the power to engage in financial transactions stemming from a specific checking account or be given the power to sign the closing documents for a specific real estate transaction. These activities are very limited and are assigned to a specific type of transaction. They are not nearly as broad as "general" powers are.

Either type of power can be limited in its duration. This means that the person selecting a representative can specify a date after which the power of attorney assigned to that representative will no longer be valid.

Typically, forms granting power of attorney do not have to be registered with the state. If a form grants an individual the rights to engage in transactions and dealings pertaining to real estate, it may be required that the forms be registered with the state.

By: Joseph Devine
If you would like more information concerning power of attorney or other legal transaction related to probate, please visit http://www.probatelawyeraustin.com.

An individual's largest asset is usually their homes. In an attempt to keep these large assets in the family and to avoid probate, individuals are either gifting the homes away to children early by signing over the deed or setting up a living revocable or irrevocable trust. Unfortunately sometimes these instruments are not used properly, don't take in all that needs to be done in estate planning and could cause harms not initially apparent when initially create them.

Trusts are used to manage assets. They can be set up to accomplish any number of goals such as providing income for a child, grandchild or other family member or it can provide income for a favorite charity or distribute assets in an attempt to reduce tax consequences or security assets from those inevitable issues that come with aging.

If you are setting up a trust in order to protect your assets from creditors or other unforeseeable situations which may arise as you age you must look at both types of trust closely to determine which is best for your circumstance. There are two types of living trusts, revocable and irrevocable. The difference being that the revocable trust can be changed or modified, giving the creator the flexibility of continued control over the assets during his lifetime. The other type of trust is an irrevocable trust. Once an irrevocable trust is established it cannot be changed. The creator will have no access or control over the assets any further through their lifetime once it is placed in the irrevocable trust. Some individuals do not like particular aspect of irrevocable trusts. They want the protection of the trust however they do not want to give up all control of their assets. Depending on what needs to be done in the protection of the assets, an individual might have to give up all control over the property in order to get the protection necessary from creditors or lien holders.

It is important to understand prior to forming such an instrument, that general creditors may use the Uniform Fraudulent Transfer Act (UFTA) under G.L. c. 109A to void or rescind a transfer by a individual debtor for less than fair consideration, regardless of whether the transfer is to an individual or a trust. The Fraudulent Transfer Act can be used by an individual's creditor if they can show that: 1) the debtor had "actual intent" to "defraud either present or future creditors"; or 2) the debtor believed "that he will incur debts beyond his ability to pay as they mature"; or 3) even if there was no fraudulent intent, the debtor was "thereby rendered insolvent". What this act will do is render an individual's trust void and rendered charges against the individual for a fraudulent transfer. This "look back" period as it is called is a statute of four years. If for example an individual has placed a piece of property into a trust and then enters a nursing home the creditor or Medicaid will look back four years from the date of incurring the charges to see if any property was transferred. If such property was transferred and the intent is considered fraudulent then the trust is considered void and the nursing home will be able to attach the home for charges incurred.

Also prior to placing assets into a trust the individual must understand that in bankruptcy, debtors must report all transfers made within one year of signing the bankruptcy petition. In conjunction with the one year "look back" period in bankruptcy, creditors may also use the Fraudulent Transfer Act to reach assets that have been transferred without fair consideration within their four year "look back" period as well.

If after discussing all aspects of why you need an instrument for estate planning with your attorney understanding the difference in the instruments, what they can and can't do is the next step. While a revocable trust gives the individual the ability to continue to control their assets, this control makes it impossible for the trust to offer any protection to an individual from creditors seeking to collect on a debt. "The established policy of the Commonwealth long has been that a Settlor (person who creates the trust) cannot place property in the trust for his own benefit and keep it beyond the reach of his creditors". Following, after the settlor's death, creditors of a settlor also have access to any and all trust assets that the trustee could have distributed during his lifetime. The plain meaning is that a revocable trust offers no creditor protection to the creator of such a trust.

A revocable trust may also result in loss of homestead protection and right of survivorship. A homestead or homestead exemption means that your home is protected from creditors up to the limit of the exemption for as long as the house is your primary residence. A homestead prevents most creditors from taking the house away from you to satisfy a debt that you owe the creditor. It will also protect your home in the event that you have to file for bankruptcy. If the home is placed in a trust, the homestead does not work. The home is no longer a primary residence, it is placed in the trust name and is no longer in your name. The placing of the home in a trust also will break the right of survivorship relative to a spouse that survives you.

An irrevocable trust in turn will protect you from your creditors as long as the trust is created in such a way the individual has no control over the trust asset for which it was made. In making any type of long term estate plan it is the best policy to speak to an attorney regarding your assets, your long term planning, and how you would like to manage such assets during and after your lifetime. Due to the "look back" period this should be done sooner rather than later.

By: Michael A. Goldstein
The foregoing article was drafted by The Law Office of Goldstein and Clegg, LLC. For additional articles, see their Bankruptcy Law blog.

In today's world it can be difficult to know certain things about people. Children are growing up faster and faster, looking older and finding ways to make people believe that they are older. This can cause serious problems. Not only does this bring up issues of selling alcohol and tobacco to minors, but there is the problem of statutory rape as well.

Rape can be defined as any sexual act that is performed without the consent of the victim. According to federal law, consent cannot be given for any reason by any person under the age of majority. This means that if a person is under the age of majority, they cannot give consent for anything without the consent of their parents or legal guardians. This is the reason that minors need parental consent for everything from summer trips to school field trips.

This also means that minors cannot give consent for sex. This is why statutory rape laws exist. Legally there cannot be consent, but it is not quite the same thing as rape. It is not treated in quite the same way as rape either. There are several factors that can mitigate statutory rape charges, and some that can make the penalties associated with it far worse.

Many states have "Romeo and Juliet" laws. These laws make the penalties for statutory rape less harsh if certain circumstances are met in the case. Generally, if the two people involved are within 3 years of age, and the "victim" is at least 14 years old, the penalties are less harsh. These laws are meant to reduce or eliminate the penalty when the age difference is minimal.

However, these laws cannot and do not apply to everyone. In cases where the defendant has a position of authority over the minor, the penalties can become harsher. These positions can often include teachers' relationships to students, coaches to players, or even guardians to wards. If any type of violence is used to facilitate these relationships, the penalties are even steeper.

By: Joseph Devine
There is a lot that goes into the decisions in statutory rape cases. Things that were not taken seriously in the past, such as older women having sex with male minors, are becoming more serious. The legality surrounding statutory rape can be somewhat fluid, making is confusing. If you would like to know more about statutory rape laws, you can
click here.