Living trusts is a way to avoid probate and reduce or eliminate federal estate taxes. This section will give you some general information to help you understand what your choices may be, but we still encourage you to talk to a lawyer to get specific answers about your situation. You can usually pay the lawyer’s fees from the property in the case.

How can a living trust be set-up and funded?

• A trust document can be setup which usually name(s) the trustor(s) (which is the person who is setting up the trust) as the trustee(s) of the named trust. The trustee(s) are responsible for maintaining and managing the trust and its assets. The trust usually nominates other individual, bank, or trust companies as a successor trustee(s). The successor trustee(s) will take over the management of the trust after the death, resignation, or incompetency of the original trustee(s).
• The trust also provides the distribution of the estate(s) of the trustor(s) after the death of both trustors. Some provisions can be the same as those found in a will that might include trust(s) for children, gifts to charities, etc.
• Depending on the amount of the estate, the trust might also include provision that will reduce or eliminate federal estate taxes.
• After the signing of the trust, the trustor(s) transfer their assets to the trust. If this is not done on a given time, additional legal work or possibly including a probate of the named assets will be required after the death of the trustor(s).