mine.txt

mine.txt - - - - legal nfo, living-trusts, trustgordon.com

your blood for my sins, your spirit for my goings.
i cannot ask nor trust you for more than that.
o lord jeses the christ! blessed is the man that `trusteth` in thee.

these are notes from c:\oof\was\tgor piked for forming `my` trust.
march,2004 going thrw files in a-z order.

777bbb.txt
Anyone can access the results of the Better Business Bureau's findings by
telephoning the bureau at 616-774-8236 and submitting the phone number of the
firm on which information is wanted. As an example, the Better Business Bureau
record of the National Center for the Avoidance of Probate can be accessed by
submitting the NCAP telephone number 800-338-0227 at the operator?s prompt.

777creata~1.txt
A complete list of documents furnished to each client follows:

Trust Contract: of trustgordon.com

Includes as an option the important, tax-saving A-B Living Trust feature
Allows you to name either a sole successor trustee or co-successor trustees
Leaves your estate to your beneficiaries in a choice of undivided assets,
shares, or both
Allows you to delay payment of inheritances to underage, immature or handicapped
beneficiaries
Permits successor trustees to manage the trust upon your permanent or temporary
physical or mental incapability
Can deduct unpaid loans from the inheritances of indebted heirs
Can be altered on monitor to fit unusual and personal needs

Pour Over Wills for each spouse

Leaves forgotten assets and assets created at death directly to your trust
Names personal guardians for underage, orphaned children
Nominates property guardians for underage, orphaned children

Financial Power of Attorney for each spouse

Upon your physical or mental incapacity allows successor trustees to also manage
any assets you hold outside of the trust
Upon your recovery permits you to regain full control of your affairs without
expensive and embarrassing court hearings

Healthcare Power of Attorney for each spouse

Appoints a patient advocate to make health care decisions when you a mentally
incapable of making such decisions yourself
As an option, allows patient advocate to make possible life-terminating
decisions
Includes doctors? statement of attestation that you are mentally or physically
incapable of making such health care and possible life terminating decisions on
your own behalf

Affidavit of Trust

An expendable document sometimes demanded by local and out-of-town financial
custodians that attests to the existence of the trust contract

Bill of Sale

Quickly and simply transfers all heirlooms, jewelry, household furniture and
equipment, collections, autos, bank deposit box contents, etc. into the trust
Names the locations at which such personal possessions are kept
Alerts successor trustee to any personal possessions that might be on loan to
schools, churches, other individuals, etc.

Distribution of Personal Effects and Special Assets Memo

Sets up a schedule as to how you want personal possessions distributed at your
death
Allows personal possessions and special effects of first spouse to die to be
distributed immediately (before surviving spouse dies)

Schedule of Separately Designated Assets Memo

Allows spouses on their second marriages to safely contribute assets to the
trust
Assures that such separately contributed assets come out of the trust at the
death of that spouse and be returned to the heirs of the first marriage.

Trust Amendment form

Allows trust grantors to make major amendments to the trust without the
expensive services of an attorney

Quitclaim Deed

Transfers real estate into the trust without the need of an attorney
Can be used over and over for trust grantors that own multiple parcels of real
estate

Trust Package Instructions

Gives a detailed description of each document and auxiliary document in the
package along with complete instructions as to completing the document and then
executing the document.

Instructions for transferring assets to the trust

Explains how simple and easy it is to transfer assets to trust ownership
Details every type of asset and the steps required for transfer
Personal hints and suggestions as to how handle unusual situations

Mechanical instructions (Finish-It-Yourself Economy Edition only)

Explains and demonstrates the easy steps in inserting your personal information
Explains the pop out instructions hidden in each document to guide your every
step
Explains the automatic legal page numbering system included with each document

To see a sample of each trust edition, click here

To go to Ready-to-sign Edition
Order Form, click here

777gmb.txt
Upon investigation, the enraged Bennett learned that the attorney had quietly
and deliberately substituted a Testamentary Trust that would require more than a
year of probate and would chisel away thousands of dollars in unnecessary legal
costs and attorney fees.

777gurana~1.txt
Telephone Gordon Mead Bennett directly toll free: 800-338-0227

777lesson1.txt
2. Learn that a will is a centuries-old tool of entrapment engineered by the
legal profession that leads your estate straight into Probate Court for a long
and expensive stay.

3. Learn why giving your children joint or total ownership of your assets before
you die is one of the most serious estate-planning mistakes you can make; how it
will not only make you a party to your children?s financial hassles with their
creditors but also set your children up for capital gains taxes far surpassing
the cost of probate!

4. Learn how and why a Living Trust avoids every headache of probate and joint
ownership by legally transferring your assets to your loved ones after you die
in three to ten days, usually for less than $50 total cost. No attorney should
be needed.

5. Learn why there is absolutely no need to reveal to an attorney or estate
planner the size of your estate, your mortgages, your debts, or the types of
assets your hold. Nor are you required to advise the mortgager of your home that
you are placing the property in a trust. Only the names of the trustees, the
names of the beneficiaries, and how and when you want your beneficiaries to
receive their inheritances must be listed in the trust documents.

777lesson2.txt

777lesson3.txt
The Ultimate Goal of estate planning

Thus, this vague term avoiding probate is really just a two-word phrase for
somehow convincing your financial custodians while you are alive that they can
safely release your assets directly to your heirs after you die, free from the
fear of lawsuits, without the need of a guarantee from Probate Court.

777lesson4.txt

q: can i xfer to trust or trust to beneficiareies, tax free?
a: if gifted, donated, or charity, but if sold or inheirited the gov. may see
this as somthing taxable?: e.g. eagle-research.com
a: joint ownership, capital gains tax, estate tax, info, read line 39 on.
joint ownership=names listed on titles of assets, superceed a will provisin
q: and children if they are on names of title assets?
a: is a no-no, it places hi c-g tax on kids if they try to sale it later.
q: what r ways this property can be divided to dads 4 children?
a: what are the 4? ways an asset can be titled. with `homested, feature.
4t! see creata~1.txt at c:\oof\was\tgor = full list of trust features.

giving inheiritance by will is better than joint-ownership asset.
giving b-4-u die is considered a taxable? `gift` by gov. /not an inheiritance
other joint-ownership problems. if one asset owner gets dispossesed by the
bank, tax colllector, or divorce court, or just likes the view from moms
window better than from his own. can move in. no court can stop it.

In other words, giving your appreciating assets to your children, jointly or
wholly, before you die springs the Capital Gains Tax trap and always turns out
to be the most expensive way of all to convey your assets to your kids!

q: choose! a living trust, or quit-claim joint-ownership in property to kids.
q: is moms name on the land-deed title too?



777lesson5.txt
the four ways to protect assets, how2 start a trust, assets in a trust.




4-t! make provision in trust for trustee to get...
quitclaim deed(s) to transfer real estate on to the beneficiary(s), phone calls,
postage, perhaps some stationery and envelopes from K-Mart, and a tank of gas in
the successor trustee?s Chevy are legitimate expenses that the trust should
rightly pick up.
If the affairs of the trust are in good order, this distribution ("giving away")
of the assets to the beneficiaries will take perhaps 3 to 10 days and the cost
of transfer will probably be less than $50. This cost is incurred entirely by
the out-of-pocket expenses of the successor trustee(s).
Best of all, your beneficiaries will receive those assets from your trust at
their full, stepped-up value at the time of your death.

It is also important to understand that trust assets are identified by what is
written on the titles and deeds of the assets, not what is written in the trust
contract. There is absolutely no need for a properly constructed trust contract
to formally list the assets owned by the trust.

4t! A simple paragraph in the trust contract stating that any asset whose
title bears as its owner the name of the trust and its trustees does away with
any need to list the assets in the trust contract. It is, however, a courtesy
to the successor trustee to clip to the trust contract an informal list that
not only identifies trust assets but also the location of the title or deed
of each asset.

777lesson6.txt what makes it legal? u-r tryn 2 gt ur assets frm custodian
to the heir.
No court, no attorney, no judge has anything to say about the legality of your
trust. The magic moment when you trust becomes legal is that instant when on the
strength of your trust contract your financial custodian accepts your assets for
safekeeping in an account owned by your trust. That acceptance of your assets
into the trust by your financial custodian guarantees that those assets must be
released to the control of your successor trustee immediately upon your death.

4t! The successor trustee, now using the authority given him/her through the bylaws
of trust contract, simply turns around and `gives` those assets to the
beneficiaries named by the trust grantor(s) in the trust contract which
terminates the trust. but 4 tax resons mind `how` your trust permits a `give`

What this all means is that an attorney has absolutely nothing to sell you other
than a simple contract between you and your trustee - you and you!

777lesson7.txt \tax attacks, how a-b boosts your tax-exempt giving size

key! while both spouses r alive, no federal income-tax return is filed for
your living trust /so add sons as grantors?
a: your income is reported on your irs 1040-form yearly
a: uncle-sam/the gov. says u r primary beneficiary of a `revocable trust`
entitled to every cent the trust makes, so u must report it just as if
no trust existed. /so sons must also after u n the trust?

key! There is a great deal of confusion concerning estate taxes. Estate taxes
have nothing to do with the cost of probate nor capital gains taxes.
They are three different thieves, each trying to steal your money.

Federal estate taxes are assessed on the total net value of the assets you
transfer to your heirs when you die. The possible existence of these estate
taxes is present regardless of the technique in which you title your assets
(sole ownership, joint ownership, corporation or trust).

For almost two decades each person was allowed a $600,000 exemption on the total
inheritances the person passed to his/her heirs. A heavy tax of 37 percent
kicked in on any excess over $600,000 and graduated up to 55 percent when the
excess hit $3-million.

In other words, a husband and wife each had a $600,000 exemption and, by using
their individual exemptions wisely, could pass a total of up to $1.2 million to
their children without any estate taxes.

The exemption was increased to $625,000 per person on January 1, 1998, increased
again to $650,000 on January 1, 1999 and went to $675,000 on January 1, 2000.


On the surface all of this appears to be good news until one looks ahead 52 more
weeks to January 1, 2011. Congress passed this new tax bill under "budget rules"
which requires an expiration or "sunset" date of 2010 when this temporary law
must be repealed. Unless congress acts to make these tax cuts permanent (I
cannot believe it won?t), the maximum tax on the excess returns to 55 percent
and the exemption may fall back to the 2001 level of $675,000 per person!

Much is still unclear because of the possibility of changes in the capital gains
tax structure scheduled for the same year (2010) that may make for some tough
sledding for estate taxes. Also, the United States Constitution mandates five
congressional elections and at least one and possibly two administration changes
through the year 2010. This will create a horde of new candidates pulling and
pandering in ways that we at this time cannot imagine.

in other words: the a-b feture in your trust would be profitable and atleast
provide no extra tax-exempt, i would avoid it, keep the trust simple?
Joint ownership: the perfect way to throw away a $1-million exemption!

For years nearly every married couple has managed to squander one of its two
available estate tax exemptions by holding assets in joint or co-ownership
(both-names on the titles and deeds of the assets).

The Internal Revenue Service looks upon joint ownership as separate and
unrelated estates. As an example, let say that John and Mary Smith have a total
estate of $1.2-million that they hold in joint ownership. Uncle Sam, however,
says that John has a $600,000 estate and Mary has a $600,000 estate. And what a
whale of a difference this makes. see lesson7.txt
The tax-saving A-B Living Trust

Up until now we have been discussing what is known as a "common" Living Trust.
When used by a married couple, each spouse is a co-grantor (maker) of a common
trust. When one spouse dies, the survivor becomes the sole grantor of the trust
in much the same way that joint ownership turns into sole ownership when one
spouse dies. The survivor gains full control and has the right to change or
amend any part of the (common) trust in any way he/she chooses - but loses one
of the couple's two $1-million estate tax exemptions.

4t! ?By adding several special paragraphs to the trust contract at the time it is
drawn, a husband and wife can give each other permission to split the trust
evenly into two sub-trusts at the death of the first spouse to die - one for
each spouse (in John and Mary's case, approximately $600,000 is placed in each
sub-trust). see lesson7.txt

This ability of an A-B Living Trust to double the amount of your available
estate tax exemption (especially at these new rates) should all by itself be
reason enough to abandon joint ownership of assets immediately and get into a
Living Trust.

However, there are other major advantages to an A-B Trust: 1, 2, 3, 4, 5!
see lesson7.txt
a living-trust becomes irrovocable-trust at grantors death. u have 9 days to?

The Layman's Guide to Living Trusts
by Gordon Mead Bennett
777Lesson8.txt
Other Living Trust advantages

In addition to the avoidance of probate and averting both estate and capital
gains taxes, there are many other distinctions and advantages to a Living Trust.
Those of significant importance are reviewed here for your edification:

1. Unlike a will, which becomes public record the moment a probate file is
opened, a Living Trust maintains family privacy of financial details.
Information concerning the size of the estate and the identity of those who will
inherit it remain the private business of the immediate family.

2. A Living Trust avoids the possibility of embarrassing incompetence hearings
in Probate Court and the appointment of some stranger as conservator for your
financial affairs when you become old, old, old.
key! Upon the signatures of two physicians the successor trustee has the power
to take over management of the trust should the primary trustee(s) become
physically or mentally incapacitated. /no see a mind doctor - or else.
This is not possible with a will. A will can kick into gear only upon the death
of its maker.

3.A Living Trust permits inheritances to minor children to be either delayed until
the children reach both a legal and mature age, or to be parceled out in
installments over a period of years.

a: 4. Being a private contract, the terms of the trust contract are incontestable
by disgruntled heirs or any other third party.

E-mail your questions to Gordon Mead Bennett, NCAP founder
Telephone Gordon Mead Bennett directly - toll free
Customized Living Trust documents e-mailed to you in 24 hours!

Other Living Trust facts you should know

- A Living Trust contract does not require registry or recording with any
municipality, court or county. The agreement is a private contract between two
people: the trust maker and the trustee. Requirement to record a private
contract would make its contents public record which would be unconstitutional.
Remember, there is no way your trust could remain unknown to your beneficiaries
because the assets must be registered in the name of the trust with your
financial custodians.

The trust is actually about 500 years older than the "modern" probate system.
- The freedom to create a Living Trust is indirectly protected by the Tenth
Amendment to the United States Constitution which leaves certain personal rights
to the states, among them the right to form a corporation, do business under an
assumed name and create a trust. The outlawing of trusts in America would not
only require a formal amendment to the United States Constitution, but also
raise havoc with every corporation doing business in the country including
General Motors, General Electric, General Mills and Grandma Ginny's General
Store. You can safely bet the rent money that this will not happen.

Based on English Common Law after being ruled legal in Chancery Court of England
in 1535, a Living Trust is valid in all 50 states and every free country of the
world.

4t! provide a ammednment-provision in your trust. even if its a`right`already.
A Living Trust contract can be amended by the grantor of the trust in about five
minutes with a special amendment form included with all trusts created by the
National Center for the Avoidance of Probat. Simple modifications such as
changing a figure from 9 to 10 percent, can be affected without need of the
special amendment form. Simply cross out the figure "9", write the figure "10"
above it and signing your initials.

key!
A revocable Living Trust is revoked by reversing the procedure that originally
created the trust, namely titling the assets back into the personal names of the
trust makers, a right that is available to the trust maker at any time. No
documents of revocation need to be filled out. When the assets are all back in
the personal possession of the trust maker there are no assets in the trust
which means there is no trust. The only exception would be if the trust makers
had engaged a corporate trustee such as a bank. In such a case the trust makers
simply send the corporate trustee a registered letter stating that trustee?s
services are no longer needed.

Assets that name a beneficiary on the title of the asset (including assets that
include a POD or TOD, i.e. Payment on Death or Transfer on Death) such as
insurance policies, annuities, 401Ks, IRAs, etc. need not be placed in the
trust, but should be reviewed to make sure contingency beneficiaries have been
listed on them. By naming your trust as a contingent beneficiary, the asset will
key 4t
flow into the trust and be distributed by the terms of the trust in the event
that both trust maker and the primary beneficiary (usually the spouse) die in a
common accident.

Assets do not require an evaluation when placed in the trust nor should assets
be formally listed in the trust contract. However, as a helpful courtesy to your
successor trustee, list your assets informally on a separate piece of paper and
attach it to the trust contract with a paper clip or staple.
key! To determine any estate tax liability, trust assets should be evaluated
immediately after the surviving spouse dies.

Automobiles, boats and recreational vehicles generally pass to the heirs outside
of probate in most states. Yet, to avoid possible misunderstandings, it is wise
to place such items in the name of the trust. /no! a car is an occasion for a
law-suit against the trust for damages. keep active-cars out of trust.

A Revocable Living Trust does not render its maker judgement proof nor was it
ever so intended. Though the assets are owned by the trust rather than by the
maker or trustee of the trust, the trust maker still has the power to amend or
revoke the trust and is thus considered collectable.
/but make provision for this power in the trust anyway

For Estate Tax purposes, all assets both inside and outside of the trust are
considered a part of the estate. This would include the face value of insurance
policies, IRAs, 401K plans, annuities, pensions, etc. If accomplished three
years before death, life insurance placed in its own Irrevocable Insurance Trust
will not be considered a part of the estate.

Where would you like to go next?
Click on destination below:

777lesson9.txtc
The price of procrastination

In addition to hundreds of e-mails seeking general estate planning information,
the National Center for the Avoidance of Probate receives 25 to 50 inquiries
monthly from folks who suddenly or with little warning find themselves with
their backs to the wall. A spouse or parent has 1) died unexpectedly, 2) become
suddenly ill and is destined for a nursing home, or 3) been diagnosed with
logus-on-the-bogus and given just a few months to live.
ctrust data
note q4 idea! turn peoples asset titles into fictio

Question #1: How do revocable trusts differ from irrevocable trusts?

Answer: A revocable trust can be amended or canceled anytime during the trust
maker's life. An irrevocable trust, however, is written in granite. The trust
maker loses all control of the assets, cannot change the terms of the trust, nor
receive benefits from the trust. The trade off is that the trust maker pays no
income tax on profits or dividends earned by an irrevocable trust.

Almost all Living Trusts are revocable during the trust maker's lifetime but
become irrevocable at the death of the trust maker (the successor trustee cannot
alter the terms of the trust when he/she becomes the trustee).

Complex Trusts, Pure Trusts and Common Law Trusts are part of the irrevocable
trust family. Through a complicated multi-trust arrangement they permit a trust
maker to "manage" his/her own irrevocable trust yet supposedly maintain a
judgement-proof status. Such trusts skate just inside the borders of the law and
are heavily regulated and watched by the federal government.
Question #3: Can a Living Trust save on taxes?

Answer: It depends on how you look at it. A Living Trust will save nothing on
income taxes. Income taxes will come out the same amount, trust or no trust.
Thus, no tax savings here.

When it comes to capital gains taxes, a trust won't save you a penny but can
save your children a great deal of money as you will learn as you study the
earlier steps of this workshop.

4t! As far as estate taxes are concerned, certain terms can be added to a
Living Trust - it's then called an A-B Living Trust - that will allow a
married couple to take advantage of both of their estate tax exemptions,
something that can't be done when assets are held in joint ownership.
This can save a husband and wife thousands of dollars in estate taxes.

What attorneys don't mention is the fact that the client's heirs must
surrender perhaps 25 percent of their inheritances in probate fees to take
advantage of estate tax-saving provisions incorporated in a will. When such
provisions are placed in a trust rather than a will, the heirs do not have to
wade through months of probate at a cost of thousands of dollars. The savings
come free of charge!

In addition, the surviving spouse has little control of or access to the funds
when the decedent's B trust is created by a will. When created through a Living
Trust, the survivor can use funds in Trust B for a great variety of things.

Thus, there are generally great tax savings with a Living Trust. However, they
come through the back door rather than the front door.


The assets are owned by a fictitious person or entity known as a trust and
managed by the trustee. It would be the exact same thing if you transferred
ownership of your assets into the name of the city in which you live. The assets
would then be owned by the city - not by the mayor.

Attorneys also do all they can to coerce banks, credit unions, register of deed
offices and other financial custodians into insisting that all Living Trust
documents be drawn by an attorney. Because most bank/attorney relationships are
mutual back-scratching affairs, there are banks that succumb to this goading.

The truth of the matter is that the trust document is a private contract between
two people that can be drawn personally by either person and cannot be
challenged by a third party. That right is guaranteed to all American citizens
in Article 1, Section 10 of the United States Constitution.

Attorneys that make such statements should be reported to the Bar Association,
and the rare financial custodian that wants to belabor the point should have
chapter and verse quoted to them immediately. Should they still wish to defend
the indefensible, simply ask them to cash you out, then take your business
elsewhere.

Question #6: Can a Living Trust be an advantage over a will if I become
incapacitated?

key 4t!
Answer: Most definitely. Almost every trust contract allows the successor
trustee to take over the management of the trust during some period of physical
or mental incapacity of the original trustee. Two doctors are required to
officially report that you are physically or mentally incapable of continuing
the management of the trust.

No such thing is possible with a will. A will cannot kick into gear until
someone dies. If you become incapacitated and have no trust, your family must go
to Probate Court and have a conservator (money manager) and sometimes a personal
guardian appointed for you.

In the event of your recuperation you do not have to petition Probate Court to
restore you to your rightful place on the throne. You simply reverse the
procedure by having the two doctors attest to your recovery and you are then
once again in complete charge of your own affairs.

Question #7: What is the ideal age at which to create a Living Trust?

Answer: Just as soon as you begin to accumulate assets. That can be as early as
18 to 20 years of age. However, in the fast-paced, modern world of the younger
they dont think...death.
Thus, younger adults erroneously shy away from trusts, believing that such an
arrangement would complicate and prolong any financial settlement at the
termination of a marriage. The truth is that such settlements take no longer
when community assets are held in a family Living Trust than when in joint
ownership. In fact, there are many cases where trust ownership of assets could
have a decided advantage.

It is always difficult for young adults to visualize premature death. At age 21
almost everyone believes they are going to live forever, yet the obituary
columns of any newspaper bespeak this not to be true. Young widows, young
widowers and minor children are often unexpectedly caught in the clutches of
Probate Court at a time when they need the use of every asset for house
payments, insurance premiums, inflation-driven living expenses, and the
education and preparation of those children for the life that stretches before
them.

In a case of the sudden death of both parents, the neglected problems of
guardianship, conservatorship and the intrusion of Probate Court into the lives
of orphaned children can not only be devastating but also influence the
personalities of innocent children for the rest of their lives.

Trusts are pretty much of a snap to set up at younger ages because there usually
has not yet been any great accumulation of assets. The finest wedding gift any
young bride and groom can give to each other is a revocable, working, breathing
Living Trust. It is a keepsake that lasts beyond a lifetime.

Question #8: What happens if I have neither a will nor a trust?

Answer: Welcome to the club! Actually, more than 70 percent of the populace go
to their graves with the best of intentions but without a will or any estate
planning. This omission has kept the probate attorneys busy, busy, busy for
centuries.


years ago and has not been heard from since. It matters not. The long, lost
child - rich or poor, drunk or sober, drug-addicted or not - will inherit an
equal share of the estate along with his/her two siblings who have for decades
loyally and faithfully held high the torch of responsibility to their family.

It is often been said that the only thing worse than having a will is having
no will.

Question #9: Will my Living Trust be affected if I move to another state?

Answer: Little, if any. First, remember that a trust is not a piece of paper but
rather a technique of titling assets. It has no domain. It's like choosing to
eat with your fingers rather than your fork. You can do either in any state of
the union. Any asset recorded in the name of the trust is a part of the trust
whether the asset is located in Utah, New Mexico. Vermont or any other state.

Each trust is controlled by the laws of the particular state determined in the
trust contract. If the contract says that your trust is to be governed by the
laws of the state of Ohio, it is governed by Ohio laws even though you currently
live in Montana. Upon moving to another state you may want to investigate local
trust laws to determine if the laws of your new domicile would be more favorable
to you than those of your old habitat (rarely are they less favorable).
key 4t!
To make a change, you locate the paragraph of the trust contract in which the
designation is made (it is usually near the end of the document), draw a line
through old state "Michigan," write new state "Wisconsin" above it, sign your
initials and the change is made!

A noteworthy exception to all of this is the state of New York which years ago
(with a nifty bit of collusion between the banks and attorneys) passed a law
that says you cannot appoint yourself as trustee of your own trust in the state
of New York. That duty must be turned over to a bank, trust company or
investment broker. Not to worry, however. All trusts drawn in New York are
written to be controlled by the laws of New Jersey, Pennsylvania, Rhode Island
or any other state but New York!

Question #10: Are successor trustees paid for their services in distributing the
assets and terminating the trust?

Answer: Rarely. Not only does the operation take just a few days, it should also
be remembered that if the successor trustee(s) is also the beneficiary(s), the
payment is simply deducted from his/her inheritance!

key 4t! `how` you `give`
If the successor trustee accepts money from the trust in payment for services
rendered, it must be reported as income on his/her 1040 income tax form. If the
successor trustee carries out such duties gratis, the money will still be
received but rather as an inheritance on which there is no tax.


Question #11: Under what conditions should a bank or investment firm be
appointed as trustee or successor trustee?

Answer: Corporate trustees charge large fees to manage a trust. Yet there is
no more to managing the affairs of a family trust than there is to managing an
estate held in private ownership. Banks often offer the enticement of free
financial advise to lure the trust maker. However, in this day and age free

There are absolutely no changes in the reporting of taxes or record keeping. It
is just the same old routine of writing the checks, making the deposits, keeping
an eye out for profitable investments and maintaining the property.

The trust departments of banks are highly profitable and productive. The
employees of banks with trust departments are charged with drumming up business
for the trust department. Not only can the trust department charge 2 to 3
percent off the top of the estate every month to manage the assets of the trust,
it is a well-known fact that much of the trust's funds end up invested in the
parent bank's low yield CDs, etc. where the bank can use the customer's money to
earn 15 to 20 percent in highly profitable automobile paper or credit cards.

Also, many a widow can attest to having to beg a bank trust department for the
return of enough of her own money to replace a worn-out refrigerator or buy an
airline ticket to go spend Christmas with her kids.

If you are completely financially inept and If there is no one available to
readily handle these mundane chores of managing your affairs then by all means
hire a corporate trustee or corporate successor trustee. Though often hard
hearted, they are fair, honest, thorough, available at the touch of a telephone,
and don't call in sick. But be prepared to pay the piper.


Question #12: If an attorney does not draw my trust documents, how can I know my
trust is legal?

Answer: First, keep in the mind the original and ultimate goal of your trust: to
get your financial custodians (bank, stockbroker, credit union, etc.) to release
your assets after you are dead, free from the fear of lawsuit, without the need
of a guarantee from Probate Court. That is the name of game. That is what
"avoiding probate" is all about.

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Who better to determine the legality of your trust document than the financial
custodians themselves! You simply show the trust contract to your financial
custodians and then ask them, point blank: "After I am dead, will you release my
assets directly to my successor trustee, without the need of a guarantee from
Probate Court, on the strength of this document?"
and then ask them, point blank: "After I am dead, will you release my
assets directly to my successor trustee, without the need of a guarantee from
Probate Court, on the strength of this document?"

If the document contains the two basic elements of naming a trustee and a
successor trustee, your financial custodian will answer "yes!" At that point you
are home free and any opinion your attorney might have counts for nothing.

All Living Trusts are self-proving and foolproof. They must be approved or
rejected by the financial custodians themselves before the asset can be accepted
into an account owned by a trust. Once the asset is accepted for safekeeping it
must be returned upon the demand of the trustee. That means there is no such
thing as an illegal Living Trust.

Question #13: Should I have an attorney look over my self-created Living Trust
contract?

Answer: If you were worried that the check someone had just given you would
bounce, would you take it to an attorney for an opinion? Certainly not! You
would instead march the check right down to the people with the authority to
cash it - the bank - and you would ask them: "Is this check any good?"

Again, the ultimate goal of a Living Trust is get the financial custodians to
release your assets to your successor trustee after you die without a guarantee
from Probate Court. Thus, you do exactly the same thing with your trust contract
as with the check. You take it directly to the people with the authority to
release your assets to your successor trustee after you are dead and you ask
them: "Will this contract do the job?"

"Will this contract do the job?"
No court, no judge, no attorney has anything to say about the legality of your
Living Trust. That legality is determined by the financial custodians themselves
at the moment they accept your assets for safekeeping. They are then immediately
obligated to release the assets upon the trustee's demand. That is the law.


Question #14: My attorney says the will he has written for me will avoid
probate. Will it?

Answer: No, it won't. But to satisfy yourself, take the will down to the bank or
to the register of deeds or to any one of your financial custodians and ask them
directly: "After I die, will you release my assets to the heirs I have named in
this will without the need of a guarantee from Probate Court?"

If the financial custodian says "yes," you possess perhaps the most remarkable
will ever written and it should probably be in the Smithsonian Institute. If the
financial custodian says "no," I would suggest you immediately file a
malpractice complaint with the State Bar against the attorney who misled you.


Question #15: Why so much difference in Living Trust advice from one attorney to
the next?

Attorneys are business people. Each has his/her own agenda, goals, and
competitors. Clients living in an altruistic world of honesty have problems
coming to grips with the fact that in the end, attorneys, like everyone else,


Thus, before visiting any attorney in regard to a Living Trust, it is wise for
the client to first bone up on all the Living Trust knowledge he/she can gather
and hone his/her common sense to razor-like sharpness.

Question #16: Is the assistance of an attorney needed to "fund the trust?"

Would you hire an attorney to open a checking account for you? Transferring
funds to a Living Trust calls for the exact same procedure as opening a checking
account - and is no more difficult.

Have your trust contract with you and simply ask the banker or other financial
custodian to open a new account for you. At that point the banker or other
financial custodian will pick up the ball and run with it while you sit back and
watch. The job will be completed in about five minutes and you will be on your
way home.

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Real estate is transferred to a trust with a quit claim deed that can be
purchased at almost any office supply store. You will fill out the form on your
dining room table in 5-10 minutes using information off your present deed or tax
notice. When completed, have the quit claim deed recorded at the county register
of deeds office. Total cost for deed form and registration: About $12. Real
estate does not have to be "mortgage-free" to enable it to be transferred to a
trust.

A quit claim deed is included in the Living Trust Kit sold by the National
Center for the Avoidance of Probate.

Question #17: Must all the assets be listed in the trust contract?

In a properly designed trust contract, assets are never listed. The trust
contract simply states that any asset whose title lists the trust as the owner
is indeed a part of the trust. When you start making lists of trust assets in
the trust contract you must keep that list up to date which means amending the
trust contract each time you buy, sell, or trade an asset.
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At the persistence of an attorney, people often scurry around for weeks digging
up all kinds of records, insurance policies, annuities, IRA's, credit card
accounts, mortgages, etc. All of it needless and a waste of time. The only
document you will require to get your trust documents rolling are the deeds to
your real estate holdings or a tax notice on those properties which will
provided the person creating the paperwork with the information needed to fill
out a quitclaim deed form.

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