What is a Trust?

A Trust is an arrangement where one person or a group of people manage property for the benefit of another person or group of people. The people that manage the Trust are the Trustees while the people that benefit from the property to be held in the Trust are Beneficiaries. Think of a Trust as a treasure chest that you place anything from personal property (i.e., jewelry, clothing, cars) to money/bank accounts to real estate. You create the treasure chest which is the Trust and then it is up to you to fund the Trust (see below on funding the Trust for more information on funding a Trust).

How can I benefit from a Trust?

When a person dies, they leave behind all of their belongings-this is called their estate. Depending on the type of property or the value of the property in the estate, the heirs of the estate will need to go through probate to transfer ownership of the property in the estate to them. On the other hand, when a Trust is set up, since a Trust never dies, probate can be avoided and the property in the Trust is simply transferred/divided up according to the terms of the Trust. Therefore, the costs and hassle associated with probate can be avoided entirely through a Trust.

What is the difference between an AB Trust and a regular Trust?

An AB Trust is essentially “remarriage protection.” For example, lets say my aunt Debbie and uncle David are married. If Debbie passes away and David remarries but then David passes away, will whomever David remarries remember the people Debbie wanted to remember as much as Debbie would have liked? Probably not and that is where an AB Trust comes in.

With an AB Trust, when one spouse passes away, The original Trust is split into two separate Trusts with half of the deceased spouse’s Trust property (as agreed upon before-hand) placed in a special irrevocable Trust that cannot be added to or taken away from. That special Trust is the B Trust while the survivor’s portion remains as the A Trust. This B Trust is then used to care for the surviving spouse for as long as they live. Once the surviving spouse passes away, then that B Trust is distributed according to the specifications of the first spouse that passed away.

What is a Trust Protector?

A Trust Protector is an individual that can oversee and protect a trust by providing accountability for the Trustee(s). In addition, they can contribute to decision making and/or act as a mediator between beneficiaries and the trustee(s) if a conflict were to arise. Often, people choose for a trust protector a pastor or loyal Christian friend who shares their Christian values, but someone who is independent from the Trustee.

Why do I need a Trust Protector?

When you have a “special needs” or “dynasty” Trust we require that a Trust Protector is designated to provide accountability to the Trustee(s) and so that a disinterested neutral party is available to ensure that the beneficiaries are taken care of.

What is a “special needs” Trust?

A “special needs” Trust is set up when any beneficiary has a permanent disability where they will need someone to care for them for the rest of their lives and/or who is receiving certain state aid that would otherwise end if the disabled child or beneficiary receives an inheritance. In this case, we require that a Trust Protector is an independent individual who is a non-beneficiary, non-relative and non-employee.

What is a “dynasty” Trust?

A “dynasty” Trust is a lifetime trust where beneficiaries will benefit for life and then any remaining assets in the trust when those beneficiaries go home to be with the Lord will be equally divided among the beneficiary's children and held in the same type of trust to benefit their children. This will continue until the funds in the Trust run out, or until the trust is forced to end under State Law.

Why am I asked for my retirement account and life insurance account information?

We ask for your retirement and life insurance account information so that your successor Trustees can have the information as a reference. This is purely listed in the Trust for record keeping purposes to make it easy and convenient for successor Trustees to know where to go for any retirement or insurance accounts that they may need to collect funds from.

What is a retirement account and how do I find this information out?

If you have a retirement account, the financial institution that you created the account through should have all of the pertinent information requested such as the type of account and the value of the account.

What is a Power of Attorney?

The power of attorney you create in Christian Trustmaker is a legally binding document that allows someone to make financial decisions on your behalf. Your document will serve as proof of the legal authority you have granted to someone to make financial decisions on your behalf when you can no longer do so yourself.

Why do I need a Power of Attorney?

If you do not create a durable power of attorney for finances and later become incapacitated, a judge will choose someone to make financial decisions on your behalf. This person may not be the one you would have personally chosen so creating a durable power of attorney for finances ensures that you have the person of your choice making these decisions for you in-case you are unable to do so yourself.

What is an Advance Health Care Directive?

An Advance Health Care Directive allows you to set forth your wishes about the medical care you desire if you become terminally ill or permanently unconscious. You may designate another person to make health care decisions for you when you are unable to make these decisions. You may make a valid Advance Health Care Directive if you are at least 18 years of age and of sound mind.

Why do I need an Advance Health Care Directive?

If you do not create an Advance Health Care Directive and you become incapacitated or unable to make health care decisions on your behalf, someone else will need to make those decisions and those decisions may not align with your wishes or desires. Making an Advance Health Care Directive ensures that those sensitive and personal decisions are made the way you want and by the people you want. Think of the Terry Schiavo situation as an example of not having an Advance Healthcare Directive.

What does the process of creating my legal documents with Christian Trustmaker look like?

After accepting an invitation and registering on the www.christiantustmaker.com web page, you will need to log in and proceed through the questionnaire answering all of the question. Once you have answered all of the question, you will then need to check out and pay for the documents. At this point, if you purchased a Power of Attorney and/or Health Care Directive, you will be prompted to proceed through those questionnaires and check out once again (but you will not be charged again). After all of the questionnaires have been completed Christian Trustmaker will review your documents and prepare them for you to download. Once the documents are completely prepared, you will be notified by email that your documents are ready for you to download and it is then up to you to finalize them.

What do I do with the documents when I download them?

Once you download your documents, you will need to review them to ensure that all of the information is accurate. You will have 30 days from the time the documents are made available for you to download to let Christian Trustmaker know of any changes that need to be made. If there are no changes that need to be made, you will need to finalize your documents by notarizing/signing them according to the instructions for each specific document.

How do I finalize my Trust?

To finalize your Trust, you will need to have it signed and notarized in the appropriate sections of the document according to the instructions provided with the document.

How do I finalize my Will?

To finalize your will, you will need to have it signed by two witnesses in the appropriate sections of the document. These witnesses should be independent (non-relative, non-beneficiary and non-employee) people and they should sign the Wills at the same time and place as you according to the instructions provided with the document.

How do I finalize my Power of Attorney?

To finalize your Power of Attorney you can have it notarized or signed by witnesses according to the instructions provided with the document.

How do I finalize my Advance Health Care Directive?

To finalize your Advance Health Care Directive, you can have it notarized or signed by witnesses according to the instructions provided with the document.

What does funding my Trust mean?

Funding the trust is when you actually transfer the ownership of the property intended to be placed in the Trust to the Trust. Think of this as filling your treasure chest with the items you wish to place in that treasure chest.

How do I fund my Trust with personal property?

You will sign and notarize a document in the Trust called “Assignment of Property” to transfer all personal property that does not have a legal title (i.e., furniture, clothing, jewelry, etc.).

How do I fund my Trust with personal property that has title (i.e., cars)?

You will need to list the item on the appropriate Schedule in your Trust and go through the appropriate agency (i.e., DMV) to transfer title to reflect your Trust’s ownership of the property.

How do I fund my Trust with bank accounts?

You will need to contact the financial institution where the account is located and inform them that you wish to transfer the ownership of the bank account to your Trust.

How do I fund my Trust with real estate in the same state the Trust is created?

You will need to file a Transfer Deed with the county recorders office in the county where the parcel of real estate is located.

How do I fund my Trust with real estate in another state?

You will need to either file a Transfer Deed with the county recorders office in the county where the parcel of real estate is located or have an attorney from that state transfer the property for you.