Why You Need a Montana Living Trust?
A revocable living trust is an important estate planning document that allows you to transfer your assets to another person or entity while retaining control of the assets while you are alive.
Also known as ''inter vivos’’ trust, a living trust is often the perfect alternative to a will since it doesn't have to go through probate. This means a living trust will save your loved ones the time, hassle, and money they could have otherwise spent in court.
But it is key to note that Montana is one of the states that has adopted the Uniform Probate Code. This model law makes the probate process easier in Montana than in other states.
Not only that, but the state also offers a simplified probate process for small estates, eliminating the need to create a living trust. For example, if the value of an entire estate is less than $50,000, your inheritors won't have to stress over a living trust.
Similarly, suppose your estate is less than certain allowances like a medical, homestead, or family allowance, in that case, your inheritors can leverage the simple probate process instead of a living trust.
Do I Still Need a Will If I make a Living Trust?
Yes, even if you create a revocable living trust in Montana, it's important to have a valid will, especially after it is dissolved. Additionally, if you have minor children, you should create guardianship to specify who will care for them when you are no longer there. Upon death, the revocable living trust will be dissolved, and your estate will go through probate unless all assets are placed in a trust or held jointly with another person.
Will a Montana Living Trust Reduce Estate Taxes?
No, that will not likely be the case. First off, Montana does not currently have an estate tax. Therefore, you do not have to worry about paying additional taxes when creating a living trust in Montana.
However, if your revocable or irrevocable living trust is subject to federal estate taxes, those taxes must be paid before the assets can be distributed to your beneficiaries.
Also, if your estate is approximately $12 million, or a combined total of $24 million for spouses, then using a more complicated trust like AB trust can make sense in avoiding estate taxes.
Preparing a Montana Revocable Living Trust
In Montana, certain steps must be taken to ensure that your revocable living trust is created correctly and is legally binding. Making a revocable living trust in Montana is an important decision that should not be taken lightly. You must do thorough research and understand the requirements before making this decision.
First, you must draft a trust agreement outlining how your property will be managed, who will manage it, and how long the trust will remain in effect.
The agreement should also name the trust's beneficiaries and specify any restrictions on how the trust's assets will be used. Additionally, you'll need to create a deed of assignment, which transfers ownership of your property into the trust's name.
Once these documents are completed and signed, they should be filed with the county clerk's office in Montana, where the trust was created.
If you have questions and want to learn more about a revocable living trust vs. an irrevocable living trust, Forms.legal can help. We understand that the complexities surrounding these legal documents, and we are committed to making you understand the requirements.
In addition, we offer all types of revocable living trust forms that will come in handy when creating your trust. Be sure to fill them in appropriately, download and print as it suits you best.