THIS TRUST’S FOR YOU!
October 2006
Do you want your heirs to pay probate and the related legal fees because of your lack of planning before death? Or would you rather take some simple steps now to reduce your estate’s financial and administrative burden on your heirs?
Let me introduce you to the revocable or living trust. This trust is set up during your lifetime and provides you with the benefit of being able to make changes to the trust agreement anytime prior to your death, including the option of revoking the trust at any time. We recommend that you then re-title all of your assets into the name of the trust – it is as simple as that! Nothing changes tax-wise – you continue to report all income on your individual tax return just as you always have.
What can this trust do for you? It lets you spell out how you want your assets managed if you become disabled during your lifetime and at your death. It can provide financial management of your assets, control of your assets if you become incapable of managing your own affairs, and guidelines for the care and support of your minor children when you die.
It can also prevent your assets from going through your state’s probate process, thus reducing delay in distributing your assets to your beneficiaries. As long as all of your assets are placed in a revocable or living trust, there is no need to probate your estate. If you have a beach house or other property in another state, you will avoid that state’s probate process as well.
Probate fees on a $750,000 estate will cost about $9,000 in New Castle County, Delaware and can be as high as $30,000 in other locations - just to have the court oversee the proper distribution of assets to your heirs! Not to mention the additional attorney fees that can be associated with this process. Another advantage of keeping your estate assets from probate is confidentiality. Probate records are open to the public and to the possibility that your will could be contested. Would you want somebody hounding your heirs because they found out that they just inherited money?
To prevent any assets from being distributed contrary to your wishes, you will want to have a will drafted to transfer any assets into your trust that were not previously transferred prior to your death. These assets will then be distributed in accordance with the trust.
For more information on a Revocable Living Trust and to determine if one would be suitable for you, please contact Diane Burke at (302) 656-6632 or DBurke@CoverRossiter.com .