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Maine Living Trust Forms – Irrevocable & Revocable

The Maine living trust form allows an individual known as a “Grantor” to specify how their assets should be dispersed by the Trustee after they die. Both Irrevocable and Revocable trusts may be used for this service with each type offering specific benefits (more on this below). Within either form, the Grantor will nominate a Trustee to manage the trust and to ensure that all assets are being properly cared for. The Grantor will also need to name the Beneficiaries who are to receive said assets when the Grantor dies. While a Will accomplishes the same function as a living trust, a living trust is not required to pass through the probate process which results in the Beneficiaries receiving their entitled property and assets immediately after the Grantor dies.

Laws – Title 18-B: (Trusts)View in PDF

Will (Last Will and Testament) – To be used by an individual when deciding where their property should go after their death. All assets placed in a Will are subject to probate and estate taxes.

Types

Irrevocable Living Trust – After creating an Irrevocable Trust, the Grantor cannot make any alterations to its provisions. Benefits of this trust type include protection of the Grantor’s assets from creditors and the avoidance of estate tax.

Revocable Living Trust – Alterations to a Revocable Trust’s provisions can be made by the Grantor. It is also possible for the Grantor to serve as Trustee and manage their assets while alive.

Individual Roles

The following roles are essential in a Living Trust:

Grantor (or “Settlor”) – Owner of the assets and the initial creator of the trust.

Trustee – Person in charge of managing the trust as well as executing the trust upon the Grantor’s death. The Grantor of a Revocable Trust may also be the Trustee.

Successor Trustee – In the event that the initial Trustee is unable to fulfill their duties, the Successor Trustee will assume control of the trust.

Beneficiaries – One or more individuals chosen by the Grantor to benefit from the assets placed in the trust.

How to Make a Living Trust in Maine

Under the laws for creation of a Living Trust in Maine (18-B §402), it states that a Grantor must have the mental capacity to create the document. Once the decision has been made by the competent individual to create a trust, the living trust document must be drafted, indicating a Trustee and Beneficiary (each position may not be held by the same person if they are the sole individual for their respective role) and signed by all relevant parties. In 2003, Maine repealed 18-A §7-101 which required a living trust to be registered. Therefore, after the document is made, it does not have to be filed with any local or State agency. Having the document notarized is recommended, but is not legally required.

The ownership of all assets that are mentioned in the trust must be transferred to the trust’s name, including the following items:

Motor Vehicles – Gather the vehicle’s title and submit it to a BMV Office Location. Also, complete a Maine Bill of Sale to show proof of the change of ownership.

Real Estate – All real estate must be transferred to the ownership of the trust through a Real Estate Deed. The deed must then be filed with the Maine Registers of Deeds Association.

Websites – The information which has been registered with ICANN (WHOIS) must be adjusted to include the trust. To accomplish this, contact your domain provider (e.g. GoDaddy, Network Solutions) and update them with the new administration details.

Do I Need a Living Trust?

Needing a Living Trust is dependent upon two things; if the individual is seeking to bypass the probate process and whether the individual wishes to distribute their assets and property to specific Heirs after their death. If bypassing probate is necessary, the only way to do this is by completing a trust unless the decedent has less than $40,000 in total estate value (per § 3-1201). If it is a small estate, the Heirs can file a Small Estate Affidavit 30 days after the date of the death and all possessions may be transferred to the descendants without the use of probate.

In summary, an individual will need a trust if he or she has more than $40,000 in assets (less liens and encumbrances) or if their intention is to only transfer their property to specific Heirs.

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