By Harry J. Lenaburg,
Esq.
Many clients choose to include
a Living Trust in their Estate Plan. One
reason to do so is to avoid the necessity of the filing of a probate action to
transfer property when the client dies.
Many of these trusts are revocable however some clients choose to
declare their trust irrevocable. There
are estate tax implications to trust planning, so a discussion with your CPA or
tax accountant is in order.
If the trust is
revocable, that means that the settler/trustor (the client or clients who
establish the trust) have reserved to themselves the ability to amend their
trust, and of transferring property to and from the trust as it suits their
purpose.
If the trust is irrevocable,
then once the settler/trustor transfers property to the trust, that property
may not be removed and returned to the settler/trustor’s name.
Most clients prefer the
freedom to transfer property to and from their trusts, so most trusts are the revocable
variety. However, as a general rule,
once any settler/trustor of a trust dies, the trust become irrevocable under
the terms of the trust.
Estate planning is
important for all, so you should consult with an experienced estate planning
attorney in your area to discuss the best options for you and your family.
The Law Firm of Jessica M. Cotter, P.L.L.C.
18301 North 79th Avenue, Suite F-168
Glendale, Arizona 85308
602-843-3004
Jmcotterlaw.com
Jessica.Cotter@azbar.org
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