If a trust is classified as simple, this merely refers to how the trustee distributes income to the beneficiaries of the trust. A trustee who oversees a simple trust is tasked with the duty of simple revocable living trust the current wealth that is contained within the estate of the deceased. A trust can qualify as a simple trust in those tax years in which the trust distributes its income but makes no other types of distributions.
This can be true even if there are no other distributions of the current income. With a simple trust, the beneficiary or beneficiaries have an absolute and immediate right to both income and capital that is left behind by the grantor. The beneficiaries of the simple trust have a right to take possession of the trust property. The property is held in the name of the trustee. Nonetheless, the trustee has no discretion over what income the beneficiary is paid.
The two most common simple trusts are living trusts and testamentary trusts. The living trust, which is also sometimes known as a revocable trust, allows the grantor to transfer property and assets into the trust throughout their lifetimes, while preserving the right of the grantor to make changes to the trust as they see fit while they are still alive. Talk to your local estate planner to find out if a simple trust is the right type of trust for your estate. Please forward this error screen to sharedip-10718048125. With a rapidly growing elder population, long-term care planning has become an increasingly popular subject.
What happens when you can no longer live independently? Most people have heard horror stories of older adults suddenly debilitated by illness and forced to use their life savings to pay exorbitant nursing home bills. No one likes to think about getting old. Unfortunately, many of us fail to plan for the possibility of needing round the clock care. Because Medicare will only pay for up to 100 days of skilled nursing care, it is necessary to find other funding sources to cover an extended or permanent stay in a nursing facility.
To avoid paying out of pocket and watching a life’s worth of savings and retirement rapidly drain away, many people look to Medicaid to foot the bill. Although they share similar names, Medicare and Medicaid are separate programs with two very different purposes. Medicare is an entitlement program administered by the Federal government. Nearly everyone age 65 and older is entitled to receive Medicare, which serves as health insurance for the nation’s senior population.