Frequently Asked Questions And Stuff That's Good To Know
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Don't use the back button when you are in the system
~ The platform encryption isn't allowed to remember the last page you were on. But if you use the back arrow you will think you got away it b/c you will see the previous page. That's b/c your computer cached the image and you will be typing away on thin air so when you try to save it will give you an error. Every page has a button that lets you RETURN to the CONSOLE navigation buttons. If you don't see a button, you are in separate tab. Look to the top of your screen and click on the tab to the left.
Why do we fund retirement accounts that have beneficiary designations already?
~ Several reasons. (1) Once you have a trust, you will want to take advantage of being able to change those beneficiary designations to pay to the name of the trust instead of to your heirs directly. This way, the trust can distribute those assets in ways that protect the undistributed amount and with tax mitigation strategies. Investment accounts can also continue to grow over time within the trust. (2) A complete listing of assets is a road map for your successor trustee who will have a complete inventory for purposes of filing claims.
If the house is re-titled in the name of the revocable living trust is it safe from a medicaid spend down?
~ No. Only items retitled to an irrevocable trust are exempt from a spend down or lawsuit, etc. Integrated Trust Systems has several types of asset protection trusts for this purpose. If your client has concerns, place a note in section 8B for the legal team.
Do I have to keep signing the trust again and again each time I make an update?
~ No. You only sign the trust one time when you create it. A revocable living trust is supposed to be updated so changes are expected over the life of the trust.
Do I have to physically sign if I electronically signed?
~ No. Physically signing is an option. We do strongly encourage that you print and physically sign and notarize your Mastor Signator Guarantor forms. The MSG lists all the items you electronically signed and allows you to back up all those items with a physical signature. If anyone contests that you were actually involved in the creation of your trust, that signature is proof.
Does it matter which e-Vault drawer I upload items to?
~ Not legally. The drawers are there for organizational reasons. Typically funding documents would go in the financial records drawer.
If responding to your client's NotePad entry:
~ DO NOT LOGIN OR PLACE THE NOTE WHILE IN THE CLIENT'S CONSOLE. Instead, when logged in as the advisor, find your client in the ledger list, see the hyperlink named "Notepad" and click through to leave your note. When you submit, it will be time/date stamped as coming from you, the advisor.
What are the default passwords?
~ Advisor + Your 6 digit ID number (no spaces) Exmp:Advisor349036
~ Client+Their 6 digit ID number (no spaces)
~ Trustee+6 digit ID number (no spaces)
~ We encourage clients to change their passwords once you have helped them with funding.
LEGAL TERMS
What is a Primary Beneficiary?
~ Those who are 1st in line to receive an inheritance - most popular Primary Beneficiaries are your kids.
What is a contingent Beneficiary?
~ In the event a Primary Beneficiary dies before you do, the named Contingent Beneficiary receives the inheritance instead.
What is Per Stirpes?
~ If you designate your children as your Primary Beneficiaries and their children (your grand children) as the Contingent Beneficiaries should your children pass before you do, then you have kept the inheritance in that child's bloodline, which is essentially per stirpes. The opposite of that is if you designate that your deceased child's inheritance be re-distributed to their siblings and not to their children.
What should the name of the Trust be?
~ Your trust name should end with the name Trust. It should be reasonably short because this name will need to be inserted in legal documents so you want it to fit and a longer name is easier to typo. You may name it after yourself but you lose anoynimity doing so. Consider naming it after a pet or something associated with your family like the street you lived on or how many children you had or a family nickname or reference. Examples could be "The Bowser Family Trust" or "The Fab Five Trust" or "The Kansas Ave Trust." You will want to avoid silly, random or bizzare names or references unrelated to you or your family.
What is a Revocable Living Trust?
~ It is a contract, governed by the civil contract law of the state it is sitused on (based on). This document determines how your assets will be distributed after you die. Revocable relates to the fact that you can change your mind about anything in the trust during your lifetime. A Revocable Living Trust does not actually have any power over you while you or a spouse are alive. It springs into action after the death of the last to pass. Assets that are re-titled into the name of the trust are not sheltered from creditors or predators because they technically still belong to the trust creators and their estate. Asset protection comes after the grantors or trust creator's pass when the trust becomes "irrevocable" by order of law because there remains no one to make changes to the trust. To get asset protection during your lifetime, you need irrevocable trust provisions.
What is an Irrevocable Trust?
~ The purpose of an irrevocable trust is to move the assets from the grantor's name, estate and control. They are instead put in the name of the Irrevocable Trust and are controlled by an appointed Trustee. This reduces the value of the grantor's estate in regard to estate taxes and protects the assets from creditors. Irrevocable trusts can't be modified by the grantors, nor can they come back into the grantor's estate or control. A common type of Irrevocable Trust is an Asset Protection Trust. They can protect assets you do not need during your lifetime, preserving them for distribution to your heirs. For example, if you have a company generating millions of dollars annually beyond what you need for your lifetime, you can put them in an irrevocable trust where they will be safe until your passing and can be distributed to your heirs according to your directives. Special Needs Trusts are Irrevocable Trusts that capture an inheritance for an individual before hitting his/her estate and potentially disqualifying them from government aid. Medicaid Qualifying Trusts are a way to remove assets from an estate for the purposes of medicaid but are still subject to the five year look back rule. We teach these concepts and how to market them in our Mentor Coaching Package.
What is a Will?
~ Document that states your intentions for the distribution of your assets and wealth after your death. Anything left out will be determined by the Probate Court. All wills must be proven in a court of law. The court assigned is called Probate Court.
What is a Pour-Over Will?
~ In our opinion, every trust should have a pour-over will clause. A pour-over will covers assets not specifically paid to the trust or funded to the trust or listed in the funding ledger. It basically states that if you perish having an asset or assets that did not get funded to your trust, you meant for them to be put in your trust. This will not send your entire estate to probate, just that item and a judge will sign off on it.
What is Settlement of a Deceased's Estate?
~ The process of transferring your assets and belongings to your heirs.
What is Probate?
~ Pergatory for your estate and loved ones. If you die with or without a will, probate court will have to sign off before releasing your assets to your heirs. The most effective way to avoid probate is a trust. If your assets are beneath your state's small estate threshold, a beneficiary can declare to the court what you have and the court may decide not to handle the settlement b/c there is not enough money to pay themselves back. Transfer tools such as Pay on Death and Transfer on Death can also reduce the amount of an estate but these tools are riddled with problems that can negatively affect your heirs down the road.
What is a "Power of Attorney"?
~ Giving someone else permission to act on your behalf legally.
What is a Durable Power of Attrorney?
~ Granting legal permission to a person to make decisions over assets. Not to be confused with Medical Power of Attorney. Medical decisions are not tangible. Your house and banking account is.
Have any other questions? Send them to us!Â
You can contact us at service@coachingglory.com if you have any issues...
Have any other questions? Send them to us!Â
You can contact us at service@coachingglory.com if you have any issues...
Have any other questions? Send them to us!Â
You can contact us at service@coachingglory.com if you have any issues...