People sometimes make broad assumptions based on misconceptions, and this can enter into the realm of estate planning.
The above is one of the reasons why it is not a good idea to buy into do-it-yourself estate planning notions. There are websites that offer downloads and worksheets with which you can create legal documents such as last wills and revocable living trusts.
As the highly respected magazine Consumer Reports has stated recently documents created using these tools are flawed, and they are not recommended for the execution of wills and trusts.
In addition to this you may not fully understand what a particular estate planning document can and cannot accomplish.
Some people think generally and assume that you are divesting yourself of personal ownership of assets that you place into a revocable living trust. In fact, with these trusts you are retaining incidents of ownership.
You can change the terms of the trust any time you want to or even dissolve the trust if this is your choice. You can also act as the trustee and the beneficiary and essentially do anything you want to do with the resources that are in the trust.
Because of this the assets are not protected from creditors or claimants. They are also considered to be part of your estate for estate tax purposes. And, if you were to apply for Medicaid as a way to pay for nursing home expenses as a senior citizen assets that you have conveyed into the trust would indeed be looked upon us your personal property.
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