A living trust, also known as an inter Vivos trust, is an essential estate planning arrangement you can create while alive for a smooth transfer of your estate to your beneficiaries. Creating a living trust in Maine involves putting some, if not all, your assets in a trust and adding terms of how the assets will be distributed after you die.
It is a better alternative to a will. Why? A living trust can help your beneficiaries bypass the probate process, but with a will, your estate must go through a probate.
What is a Maine Revocable Living Trust?
A revocable living trust in Maine is a legal estate planning arrangement where you (the grantor) transfer your estate in trust and include terms of who will get what after your death. You are also required to assign or name a successor trustee who will ensure a seamless transfer of your trust assets to your heirs. Note that you can change or modify a Maine revocable living trust as per your wishes during your lifetime.
But you can also choose to create an irrevocable living trust. This living trust cannot be altered or canceled after appending your signature. What you include in the trust is final. So it would be best to be very careful when creating an irrevocable living trust.
The good thing about a revocable or irrevocable living trust in Maine is that it allows you – the grantor, to manage and enjoy the assets in the trust while alive. It also allows you to name yourself the trustee while alive, and after your death, the successor trustee takes charge.
Do You Need a Maine Revocable Living Trust?
Creating a Maine revocable living trust agreement is vital in estate planning. First, it ensures a smooth transfer of your estate to your beneficiaries according to your wishes and terms. So even after your death, you will still control how the estate will be distributed to the named beneficiaries. Secondly, a living trust maintains privacy. No outsiders will know about the terms of your living trust unless informed by the trustee or family members.
Additionally, with a notarized Maine revocable living trust, your estate will be distributed to the named beneficiaries immediately after your death. Your heirs don't have to go through the lengthy probate process that can delay the transfer of your estate. It is also worth noting that your beneficiaries can save money in court and legal fees by avoiding the probate process.
But if you have a small estate, you don’t have to worry about the lengthy probate process. Maine has fully adopted the Uniform Probate Code that streamlines the probate process. If your estate is valued at $40,000 or less, you will not need a living trust to skip the probate process. Also, if your entire estate's value is within certain allowances, your beneficiaries can take the probate shortcut to save time and money.
Can Revocable Living Trust Reduce Estate Taxes in Maine?
A revocable living trust may not help reduce estate taxes in Maine. You shouldn't worry about estate taxes if you own a small estate. But if your entire estate is valued at over $2 million, you must pay estate taxes.
Also, get ready to pay federal estate taxes to the government if your estate is valued at over $12.06 million. But you can avoid estate taxes by creating a complicated AB Trust or marital trust, leaving your trust estate to the surviving spouse.
How to Make a Revocable Living Trust in Maine?
Creating a Maine revocable living trust is accomplished when you fill out a Maine revocable living trust form and sign it before a notary public. So if you want to create a living trust, Forms.legal offers free samples of revocable living trust that you can use to create yours. You must complete the form online and download it for printing, signing, and notarizing.