Josh Scandlen Podcast

Living Trusts play an important role in estate and financial planning, when enacted properly.  The problem, of course, comes when a document hasn't been updated to reflect the change in family dynamics, tax law or legal circumstance.  First and foremost, your trust must actually be funded, i.e., there must assets it actually controls. Assuming the trust is actually funded, the most important part of the trust is the identification of trustee and successor trustee.  These are the people who actually control the trust day to day management. What you want to happen with your trust is contingent on these people.   Typically, the trustee will be the grantor of property to the trust.  Usually, that will be you.  You grant property to the trust AND you are trustee.  You control the trust. You can change it. Cancel it. Do whatever you want.  Any income generated in the trust, flow to your 1040 to be taxed.  In actuality, you still own the property. In fact, the value