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Can A Living Revocable Trust Benefit Your Estate?
by Walter C. Cox, Jr. Attorney at Law
Property Passes Free of
Probate Costs
Your living revocable trust agreement can do just about anything
a will could do. It can provide
that a specific property be paid
to a designated beneficiary; that
a specified dollar amount be paid
to the American Institute for
Cancer Research to support its
ongoing war against cancer; or
that the trust be continued for
the benefit of designated beneficiaries.
And the living revocable trust
has this advantage over a will:
properties you transfer to the
trust will pass to your designated
beneficiaries free of the costs and
delays of probate.
For some people, another
important advantage of the living
revocable trust is privacy. Unlike
a will, which is always open to
the public, your living revocable
trust will be a private document
the public need never see.
Can A Living Revocable
Trust Benefit Your
Estate?
Like thousand of other friends
and supporters of the American
Institute for Cancer Research,
you have probably asked yourself
whether you should consider
a living revocable trust as the
cornerstone of your personal
estate plan.
In most cases, a living revocable
trust can avoid or minimize
probate costs and delays in the
distribution of property at your
death. And depending on the
size and nature of your estate,
this can be a sound reason for
creating a living revocable trust.
But there are other advantages,
disadvantages and alternative
arrangements you may want to
consider.
A Living Revocable
Trust Can Be Complex
The first step in creating a living
revocable trust is to plan and
execute a rather lengthy written
trust agreement - commonly
called a Declaration of Trust.
This agreement will establish
your trust as a separate legal entity capable of owning property
in its own name. It will provide
detailed directions for the distribution of trust properties at your
death and contain provisions
designed to give you full and a
complete control over the trust
properties during your life.
The second essential step is to
transfer the legal ownership of
certain properties to the trust.
You can generally transfer stocks,
bonds, and mutual fund shares
by having them reissued in the
name of the trust. Real property
can be transferred to the trust by
a deed that is properly recorded.
Business interests, bank accounts
or other properties can also be
transferred to the trust.
Some Questions
and Answers - Living
(Revocable) Trust
I. What is an Estate Plan?
An Estate Plan is the creation of
a definite plan for managing your
wealth while you are alive and
distribution it after your death.
Your Estate is defined as all the
wealth accumulated during your
lifetime. Example of property
may include the following.
1. Real property (residence)
and (rental property)
2. Business interests (partner
TRUST Continued on Page 31
WILL vs.is the Best Option
TRUST
Why a Living Trust
Have a Trust (No Probate)
Have a Will (Probate)
A Living Trust is the fail proof way to pass
along your estate to your heirs without
lawyers, courts or the probate system.
Probate is the system that removes the name of a
deceased person from the assets.
• All claims, real or imagined, must be settled to
the court’s satisfaction
• Probate takes time . . . many months or even
years
• Probate costs money . . . 4% to 8% of the
estate value is not uncommon
• Probate is public record
• A will is of no help if you become
incapacitated
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Address
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Age
• Be in total control for as long as you
live and are competent
• Eliminate court interference if you
become incapacitated
• Administer your estate yourself before
you die.
• Let your children do final settlement
without cost or dela