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revocable living trust

When engaging in estate planning, you have many options for planning for your family’s security after you’re gone – from wills to living trusts to powers of attorney. But, the best way to determine what you need is to understand each of these estate planning tools and how they may benefit you and your family. 

One such tool is a Wisconsin living trust

A living trust is created while you’re still alive (hence its name). And typically, these trusts are revocable, meaning you can change the trust during your life, allowing you to regain control of the trust’s assets. 

Keep reading to learn more about some commonly asked questions about Wisconsin living trusts.

1. What can a revocable living trust do?

A Wisconsin living trust can do the following things:

  • Avoid probate after your death
  • Manage your property (both active physical management and financial management) when you’re no longer able to do so
  • Shorten the time necessary to distribute assets to your loved ones

2. Can I change the trust after I set it up?

Yes, you can change a living trust after setting it up – as long as you’re mentally competent to do so. However, in Wisconsin, the living trust must state that it’s “revocable,” allowing you to make changes to the document. 

Once you die, a revocable living trust becomes irrevocable, meaning no changes can be made to the document after your death.

3. If I have a living trust, do I still need a will in Wisconsin?

Yes, depending on your circumstances. For example, you may designate the guardians of your children in a will – which you cannot do in a living trust.  Additionally, your will may account for the distribution of any property not put into the trust. 

Without a will, any property not held by your living trust will be distributed to your relatives, according to Wisconsin law.

4. Will my living trust’s assets be counted towards Medicaid eligibility?

Yes. Any assets held in a revocable living trust are considered to still be owned by you and thus counted when determining Medicaid eligibility. 

5. How do living trusts impact my Wisconsin taxes?

Living trusts do not protect your assets from state estate taxes. Fortunately, Wisconsin doesn’t have estate taxes. However, you will be subject to federal estate taxes if your estate is worth more than $12.06 million in 2022 (or a combined estate with your spouse of $24.12 million) and $12.92 million in 2023 (or a combined estate with your spouse of $25.84 million).

Estate planning can often seem daunting, but with an experienced Wisconsin estate planning attorney on your side, you can amply plan for your and your family’s future.

Setting Up a Trust in Southeastern WI

If you need a trust in Southeastern Wisconsin and the Milwaukee area, then you can count on the estate planning experts at Collins Law. We have years of experience planning estates, and we can help you navigate your options, including setting up a trust. Contact us for a free consultation today!

Talk to someone about your estate plan today. Free and Confidential.

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