Trust
Name at least two types of Trusts
Living v. Testamentary
Revocable v. Irrevocable
SNT, Charitable, Asset protection, Dynasty Trust, Generation-Skipping, Credit Shelter Trust, Intentionally Defective Grantor Trust, Income Only Trust, ILIT and many more.
What does POA stand for?
Power of Attorney
Does a Will allow you (and your stuff) to avoid probate?
No - a Will is simply a message to the Probate Court so they know what you want.
Do you have to pay capital gains tax on the sale of your primary residence?
No - up to $250,000 if single, $500,000 if married.
What is a Corporate Fiduciary?
Someone like SMB! We act as someone's POA, Agent, Trustee or Personal Representative to manage the assets in the best interest of the beneficiaries, according to the terms of the controlling document.
What is the term for putting assets "into" your trust?
Funding
Can your POA act on your behalf after your death?
No - the document "dies" along with the person who created it.
Name of the person in charge of your estate?
Personal Representative or Executor (not preferred because this also refers to the person creating the instrument)
Do your heirs pay inheritance tax on the money received from you upon your death?
No - up to $13.61 Million (2024) per individual.
What court process might a person undergo if they are incapacitated and disabled but do not have a POA to make decisions for them?
Guardianship
What provision can protect beneficiaries from their creditors accessing their share held in trust?
Spendthrift provision
What are two types of POAs? (hint: there are two correct answers to this question, I'll accept either)
Springing vs. Immediate
Healthcare vs. General Durable
Name one method by which a person can challenge a Will
Undue influence, duress, or lack of capacity
If you give your property to your heirs during your lifetime, do they get a "step up" in basis upon your death?
No - this eliminates the step up in basis, thus usually results in higher capital gains tax for your heirs upon the sale of the asset.
What court process would a beneficiary under 21 have to be subject to if they inherit from you?
What does Per Stirpes mean?
It is Latin for "by branch" or "by roots" and means that the share of any deceased beneficiary shall pass to his or her lineal descendants.
The opposite of this is Per Capita ("by head"). All living members of a group receive the same share.
What is the term meaning the POA lasts throughout the principal's incapacity or disability? (meaning, it does not terminate upon incapacity or disability, but instead continues until revoked by principal).
Durable
If you don't create a Will, what happens to your stuff?
An interested party opens a probate estate for you, where your assets pass by intestate succession.
Do your heirs pay income tax on money they receive upon your death?
No, unless the asset they are receiving from is an IRA or other tax-deferred asset.
Beneficiary Deed, Beneficial Assignments, POD and TOD are all examples of what
Non-probate transfers
The name of the person with the authority to administer your Trust?
Trustee
What is a Living Will?
A living will is a document that outlines your desires regarding their medical treatment in circumstances in which they are no longer able to express informed consent. AKA Medical Directive. This is separate from, but related to, a Medical/Healthcare Power of Attorney.
If you and your spouse have kids separately, and your spouse survives you, do your kids get any of the jointly held assets upon your spouse's death?
No - the assets would pass per the survivor's intestate succession, which only includes blood relatives.
Do your heirs have to file a tax return for you after your death?
What is one example of a needs-based program your beneficiary will be disqualified from if they inherit an outright distribution from your estate or Trust?
SSI or Medicaid; in some instances, SNAP, TANF, Medicare Savings and SSDI.