» » Connecticut Living Trust Form – Irrevocable & Revocable

Connecticut Living Trust Form – Irrevocable & Revocable

The Connecticut living trust is a document that allows a person to define how their assets should be handled when they die, similar to a Will. One of the most important discrepancies between a Will and a Living Trust is the fact that a Living Trust takes effect upon signing and can be benefited from throughout the creator’s lifetime, while a Will takes effect only upon the creator’s death. The Grantor may choose to create either an Irrevocable Trust or a Revocable Trust. Each trust type offers certain advantages and disadvantages which we will describe in more detail below.

LawsChapter 802c (Trusts)

Will (Last Will and Testament) – Allows a Grantor to establish any provision not specified within a Living Trust (i.e. naming guardians for children, instructions for debt payments, etc.).

Types

Irrevocable – Assets placed within an Irrevocable Trust are subsequently removed from the Grantor’s ownership and therefore cannot be taxed. An Irrevocable Trust cannot be modified after its creation.

Revocable – The Grantor of a Revocable Trust may retain control over their assets during their lifetime. A Revocable Trust may be terminated or edited by the Grantor at any point.

Individual Roles

A Living Trust has four (4) major roles:

Grantor (or “Settlor) – Owner of all assets to be distributed to the Beneficiaries, and the initial creator of the trust.

Trustee – Person in charge of managing the Grantor’s assets and property within the trust. Upon the Grantor’s death, the Trustee must distribute the Grantor’s assets to the Beneficiaries in accordance with the directions described within the trust. The Grantor may also act at the Trustee (with a Revocable Trust).

Successor Trustee – The Successor Trustee will assume control of the trust once the initial Trustee becomes unfit to do so (e.g. illness, incapacitation, death).

Beneficiaries – Recipient(s) of all assets placed within the trust.

How to Make a Living Trust in Connecticut

A Living Trust in Connecticut can be created by filling in the desired form type and entering your needs as fit. The document should include your personal information, the assets and property you wish to place in the trust, and the details of the Trustee and Beneficiaries. Once complete, the form should be signed and notarized. A notary public is not always required but their acknowledgment will make it easier to transfer assets into the trust. Note that Connecticut does not use the Uniform Probate Code but instead uses their own code.

Motor Vehicles – A motor vehicle may be transferred to a trust by adhering to the DMV’s specifications. Additionally, a Bill of Sale will allow you to legally prove that the vehicle’s title has been transferred.

Real Estate – A Connecticut Deed must be used when transferring ownership of real estate from one person to another. After filling out the deed, it must be filed with the City/Town Recording Office in the jurisdiction where the property is located.

Websites – The contact and administration information on file with ICANN / WHOIS must be changed. This process can be accomplished by logging into your account with your registrar (e.g. Network Solutions GoDaddy) and adjusting the ownership details there.

Do I Need a Living Trust?

This is the decision of the Grantor, but in Connecticut there is a law, Sec. 45a-273, that states if an individual has less than forty-thousand dollars ($40,000) in net worth, the heirs do not have to go through the probate process. Instead, they can distribute the assets with the filing of the Small Estate Affidavit (Form PC-212). The Grantor has the option of opting not to have a Will or Living Trust under this code. Although, if the Grantor would like to designate certain assets and property to specific individuals, the Living Trust should still be completed.

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