Make Your Own Living Trust

TABLE OF CONTENTS

Your Legal Companion for Making Your Own Living Trust    1
1
Overview of Living Trusts    3
Living Trusts Explained    4
Probate and Why You Want to Avoid It    6
Avoiding Probate    8
Living Trusts and Estate Taxes    9
Other Advantages ofÊa Living Trust    9
Possible Drawbacks of a Living Trust    11
2
Human Realities and Living Trusts    13
Leaving Unequal Amounts of Property to Children    14
Second or Subsequent Marriages    15
Single People    16
Disinheriting a Child    16
Unmarried Couples    17
Same-Sex Couples    17
Communicating Your Decisions to Family and Friends    18
3
Common Questions About Living Trusts    19
Does Everyone Need a Living Trust?    21
If I Prepare a Living Trust, Do I Need a Will?    23
How Can I Leave Trust Property to Children and Young Adults?    23
Will My Living Trust Reduce Estate Taxes?    24
Will I Have to Pay Gift Taxes?     24
Will a Living Trust Shield My Property From Creditors?    24
Do I Need a "Catastrophic Illness Clause" in My Trust?    25
How Does Where I Live Affect My Living Trust?    25
Can I Place Real Estate in a Living Trust?    27
Can I Sell or Give Away Trust Property While I'm Alive?    29
Is a Bank Account Held in Trust Insured by the FDIC?    30
Will Property in My Living Trust Get a "Stepped-Up" Tax Basis When I Die?    30
Who Must Know About My Living Trust?    31
What About Free Living Trust Seminars?    31
Could Someone Challenge My Living Trust?    31
4
What Type of Trust Do You Need?    33
If You Are Single    34
If You Are Part of a Couple    35
Individual Trusts for Members of a Couple    35
Basic Shared Living Trusts    36
Tax-Saving AB Trusts    40
5
The Tax-Saving AB Trust    41
The Purpose of an AB Trust    42
How an AB Disclaimer Trust Works    43
Is NoloÕs AB Disclaimer Trust Right for You?     46
6
Choosing What Property to Put in Your Living Trust    53
Listing the Property to Be Put in Your Trust    54
Property You Should Not Put in Your Living Trust    55
Property You Can Put in Your Living Trust    58
Marital Property Laws    62
Completing the Property Worksheet    65
7
Trustees    75
The Initial Trustee    76
The Trustee After One Spouse's Death or Incapacity    77
The Successor Trustee    77
8
Choosing Your Beneficiaries    85
Kinds of Trust Beneficiaries    87
Naming Your Primary Beneficiaries    88
Simultaneous Death Clauses    89
Shared Gifts    90
Some Common Concerns About Beneficiaries    92
Naming Alternate Beneficiaries    94
Residuary Beneficiaries    96
Disinheritance    97
Putting Conditions on Beneficiaries    100
Property That Is No Longer in Your Trust at Your Death    101
Beneficiary Worksheets    101
9
Property Left to Minor Children or Young Adults    107
Property Management Options    108
Which Method Is Better for You: Child's Trust or Custodianship?    109
Tax-Saving Educational Investment Plans    110
Child's Trusts    111
Custodianships    114
10
Preparing Your Living Trust Document    117
Choosing the Right Trust Form    118
Making Changes to a Trust Form    118
Step-by-Step Instructions    119
Prepare Your Final Trust Document    145
Consider Having Your Work Checked by a Lawyer    146
Sign Your Living Trust in Front of a Notary    146
11
Transferring Property to Your Trust    149
Paperwork    150
Technical Ownership    152
Certifications of Trust    152
Real Estate    156
Bank Accounts and Safe Deposit Boxes    160
Securities    160
Vehicles, Boats, and Planes    161
Business Interests    162
Limited Partnerships    163
Copyrights    163
Patents    163
Royalties    163
12
Copying, Storing, and Registering Your Trust Document    165
Making Copies    166
Storing the Trust Document    166
Registering the Trust    167
13
Living With Your Living Trust    169
Adding Property to Your Living Trust    170
Selling or Giving Away Trust Property    170
When to Amend Your Living Trust Document    171
Who Can Amend a Living Trust Document    174
How to Amend Your Trust Document    175
Revoking Your Living Trust    177
14
After a Grantor Dies    179
Who Serves as Trustee After the Grantor's Death    180
The Trustee's Duties    181
Transferring Property to Beneficiaries    187
Preparing and Filing Tax Returns    191
Administering a Child's Trust    191
Administering a Custodianship    191
15
A Living Trust as Part of Your Estate Plan    193
Using a Backup Will    194
Other Probate-Avoidance Methods    194
Federal Gift and Estate Taxes    202
State Inheritance and Estate Taxes    207
Planning for Incapacity    208
Long-Term Trusts to Control Property    210
16
Wills    213
Why Prepare a Backup Will?    214
What You Can Do in a Backup Will    215
Pour-Over Wills    215
Avoiding Conflicts Between Your Will and Your Living Trust    217
Filling In the Will Form    217
Signing and Witnessing Your Will    218
17
If You Need Expert Help    225
Hiring a Lawyer to Review Your Living Trust    226
Working With an Expert    226
Lawyer Fees    228
Doing Your Own Legal Research    228
G
Glossary    231
A
Using the eForms    237
Editing RTFs    238
List of eForms    238
B
Forms    239

Index    329