Steve Tutnick Law Office
Resources and FAQs
Frequently Asked Questions
Q: What other documents are commonly prepared with a living trust?
A: Several complementary documents are typically created to make your estate plan complete
and functional: a pourover will, durable financial power of attorney, certification of trust,
funding documents (deeds and assignments), living will, and health care power of attorney.
Q: What is a pourover will?
A: A pourover will acts as a safety net that transfers any assets not retitled into your trust into the
trust at your death. If all assets are already funded to the trust, the pourover will usually has no
tasks to perform.
Q: What is the durable financial power of attorney (POA)?
A: A durable POA appoints an agent to manage your financial affairs while you are alive but
unable (or choose not) to act—pay bills, manage bank and retirement accounts, file taxes, handle
Social Security matters, etc. It does not replace a trust and should be executed alongside it.
Q: What is a Certification of Trust (or Certification of Trust Existence and Trustee Authority)?
A: This is a short summary of your trust that proves the trust exists and identifies trustee powers
without disclosing the full trust terms. Financial institutions often accept it instead of the full
trust document.
Q: What are funding documents?
A: Funding documents transfer assets into the trust. Examples: deeds to move real estate into the
trust, account change forms for banks and brokerages, and chattel assignments for untitled
personal property (furniture, jewelry, artwork, etc.).
Q: What is a living will?
A: Also called a declaration regarding lifesustaining procedures, a living will states whether you
want lifesustaining treatment withheld or withdrawn if you have a terminal condition and
recovery is not possible.
Q: What is the health care power of attorney?
A: A health care POA appoints someone to make medical decisions and communicate your
treatment preferences if you cannot do so yourself.
Q: What is the mental health care power of attorney?
A: A mental health care POA appoints someone to make mental health care decisions if you cannot do so yourself.
Q: Do I need all of these documents?
A: Not every document is required for every person, but together they ensure your finances, health care, and assets are managed according to your wishes during incapacity and after death.
Ask your attorney which documents are appropriate for your situation.
The Advantages Of A Trust
- Avoids probate: Assets held in a trust generally bypass probate, saving
time and reducing costs.
- Protects during incapacity: If you become mentally or physically
incapacitated, successor trustees can manage income and principal
without court-appointed guardians or conservators.
- Maintains privacy: Trust administration is private, unlike public probate
court proceedings.
- Ensures continuous management: A trust provides uninterrupted oversight
of estate assets before and after death.
- May reduce taxes: Properly structured trusts can limit or minimize estate
taxes.
- Extends control after death: Trusts can retain property longer than a will,
allowing you to control distribution and timing beyond your lifetime.
- Offers flexibility and access: Trusts let you manage and access trust
assets during your lifetime with built-in flexibility for changing needs.
- Secures ongoing support: Trusts can provide sustained financial support
for disabled beneficiaries, elderly parents, a spouse, or an impaired child.
- Protects a beneficiary’s inheritance: A trust can provide for a married
beneficiary while keeping the assets separate from their spouse’s control
and claims.