Revocable Living Trusts
General Explanation - Joint Revocable Living Trust
FUND SURVIVOR’S (MARITAL) TRUST FIRST
This is a general explanation of a joint trust, i.e., one (1) trust document used by married couples with separate trust shares for both husband and wife with the share of the first to die normally passing to the survivor. This discussion should not be a substitute for legal counsel.
The basic purposes for this type of trust are these:
- The trust is a will substitute. All assets placed in the trust will pass through the trust at your death, avoiding the court-supervised probate process.
- The trust is a disability-planning tool; as such, it eliminates the need for guardianship proceedings. If a grantor becomes incompetent the co-trustee or successor trustee (often the spouse or an adult child, etc.) named in the trust will take over the management of the trust and manage the trust assets for the benefit of the grantors (and, if authorized in the trust document, their children) during disability or incompetency.
- The trust is also designed to permit the elimination (or reduction as much as possible) of estate taxes at the deaths of the husband and wife. Each spouse has a federal estate tax exemption1. This trust is structured so the surviving Grantor can take steps, as appropriate, to protect the assets of the deceased Grantor from future estate tax in the survivor’s estate up to the amount exempt of estate tax . This formula properly used should result at death in no estate taxes being due on combined assets up to $10 million in 2011-2012.
- The trust is also designed to protect the assets of the deceased Grantor in the trust from the long term care costs of the surviving Grantor, if he or she is in a nursing home at the death of the first Grantor to die. The Trustee is instructed to pay over the decedent Grantor’s trust share up to the tax-exempt amount to the deceased Grantor’s executor who is directed in the will to create a testamentary special needs trust for the benefit of the institutionalized spouse. They may qualify the surviving spouse for assistance through Medicaid.
The following discusses the various provisions contained in a typical trust document, Article by Article, beginning with the introductory paragraph.
Introductory Paragraph:
The grantors are declaring that they are setting up a joint trust that will be dated the day you execute the documents. The Grantors of the trust, the couple setting up and placing assets in the trust, are also the Trustees of the trust (i.e., the folks managing the assets placed in the trust) and will serve as Co-Trustees; however, either may act alone. This means that either of the trustees can deal with real estate, brokerage accounts, stocks, bank accounts, Certificates of Deposit, savings bonds or other assets titled in the names of the Trustees. At the time the trust documents are signed, we will give the grantors instruction and attorney certification letters to give to a bank, broker, or other financial institution or advisor, which will explain in detail how to title new accounts or change the name on existing accounts to the trust.
ARTICLE I. PURPOSE AND REVOCABILITY
Paragraphs A through D, states the purposes of the trust. These paragraphs set out how to manage the assets during the Grantors’ lifetimes and during periods of disability and provide for the health, support, and maintenance, and of the Grantors and Grantor’s children and grandchildren. Each Grantor reserves the right to revoke the trust, even if the other objects.
Paragraph D provides special provisions for the situation where one of the Grantors may become incompetent (incapacitated) and attempts to revoke the trust. If a Grantors has been declared incapacitated or incompetent by a court or by two doctors or if one Grantor signs a document stating the Grantor is unable to make appropriate decisions regarding the trust, then the Co-Trustee, or Successor Trustee, may disregard any further instructions by the Grantor to revoke the trust. In that way, the trust assets are protected from the Grantor’s own misjudgment should their health or mental acumen fail.
Paragraphs E and F, Paragraph E outlines how to determine incapacity. The Grantor can admit it him or herself or two physicians, licensed to practice medicine, can certify that they are incapacitated. Contingencies are also included in Paragraph F should the Grantor recover his or her capacity.
Paragraph G provides for a special provision which states that even though the Grantor may have been declared incapacitated or incompetent and no longer has the right to revoke the trust, the Grantor still reserves the absolute right to dispose of the assets that are in his or her share of the trust by writing or re-writing his or her Last Will and Testament. This right is called "a Power of Appointment", and it means that either Grantor may have a Will stating that they appoint (give) some or all the property they own in the trust to another beneficiary or person (different from those named in the trust). In this way, the Grantors have retained the absolute right to control the disposition of the assets at death.
Paragraph H specifically reserves the power to control this trust and to modify and amend it to the Grantors, and no one can petition a Court to take over a Grantor’s rights under this document. The only other person with a right to amend or revoke the trust for the Grantors would be the Grantor’s agent under a Power of Attorney with authority to make changes to the trust. The Durable Power of Attorney that we prepare normally gives the agent (attorney-in-fact) that power.
REMINDER: One thing you should remember about a revocable living trust: It is confidential and no one has access to this trust or its contents but the Grantors and the trustee, and, in certain cases, the beneficiary(s). It is not to be recorded at any court when Grantor(s) die.
ARTICLE II. TRUST PROPERTY.
Article II of the trust deals with the assets placed in the trust or assigned to the trust. To keep track of those assets, we have provided at the very end of the trust three (3) different schedules--Schedule A, Schedule B, and Schedule C. Schedule A is property transferred to the trust and re-titled into the names of the Trustees. Assets listed on Schedule A are owned by husband and wife 50/50. The Grantor each owns half. Each half is considered separate property and ensures that the each Grantor’s separate property can be kept separate for estate tax purposes. As long as both Grantors are living and managing the assets jointly, they will be managing the trust as if they each owned all of the property in the trust. Any assets transferred to the trust and not listed on any schedule are deemed to be on Schedule A.
Any assets listed on Schedule B, on the other hand, is property that will be deemed to belong only to the husband. Likewise, any assets listed on Schedule C would be deemed to belong only to the wife.
It would be fairly rare to use Schedules B or C, but occasionally a Grantor might have an interest in an asset (like a partnership or real estate interest(s) owned with other people) where a Grantor’s interest would be kept in their name alone. In other words, the Grantor(s) would list on Schedules B and C specific assets that they want to keep in their separate share of the trust after their death. Everything else titled in the name of the trustees is deemed to be on Schedule A.
Article II, Paragraph B deals with retirement plan (IRA’S) distributions.
Article II, Paragraph C. This clause states that the Grantors are actually setting up two separate trusts within the one document, i.e. the husband’s trust and the wife’s trust which are managed jointly.
Article II, Paragraph D. Paragraph C indicates that each Grantor may add additional assets to the trust by deed, by an assignment, or gift to the Trustees. If assets are inadvertently left outside the trust then upon his or her death, they come in by will (a “pour over” will). Unless otherwise specified, any assets transferred to the trust during your lifetime are considered 50/50 property (unless a Grantor assigns the asset to Schedule B or C). Assets transferred in as a result of the Grantor’s death (i.e., insurance or payable on death accounts) or by his or her Last Will and Testament, will be allocated to the decedent’s trust share and considered his or her separate property.
Article II, Paragraph E, deals with any life insurance that a Grantor may have on his or her life and payable to the Trustees. We normally recommend that after the trust is signed, each Grantor change their beneficiary designations on their life insurance designating the “Trustee(s)” of the trust as the beneficiary so that when they die the insurance proceeds come directly into the trust so that the proceeds can be managed by the Trustee(s). Each Grantor will need to ask their insurance or benefits representative or their insurance company for a change of beneficiary form. We can show clients how to fill out the form(s) to change the beneficiary designation at the time they sign their trust and wills.
Article II, Paragraph F deals with untitled tangible personal property--that is, tangible personal property such as household goods, tools, furniture, firearms, sporting equipment, and other personalty--things that are owned but which do not have a “title”. This provision does not apply to automobiles, airplanes, or boats and other items that have a title. This paragraph states that as long as the Grantors are living and keep your untitled tangible personal property in their personal possession, the Trustee has no responsibility to look after it. The purpose of assigning tangible personal property to the trust (by the Assignment to the Trustees at the end of the trust document) is to show that if a Grantor dies, this property will be considered part of his or her trust share.
Article II, Paragraph G is a general acknowledgment by the Trustee(s) that the Trustee agrees to hold and manage the assets under the provisions of the trust.
ARTICLE III. MANAGEMENT OF ASSETS.
Article III, paragraph A, states how trust assets are to be handled. All the income is payable to the Grantors and is considered theirs for income tax purposes. Although this paragraph states income will be paid out to each of the Grantor quarterly, this means only that any income earned on any account, i.e., savings accounts, CDs, or bonds, etc., will be deemed to be the income of a Grantor (and not trust income) and taxed to the Grantor during that year. The Trust does not have to actually pay out the income earned on the assets, but the Grantors do have to pay taxes on the income.
Article III, Paragraph B, states that if either of the Grantors becomes disabled, the Co-Trustee or successor Trustee will manage the trust for both Grantors or the survivor. Income and principal of the trust may also be used for the benefit of any children or grandchildren (i.e. issue), if necessary.
Article III, Paragraph C provides for what happens when one of the Grantors dies. The Trustee may pay legitimate bills and pay the burial (or cremation) expenses and to take care of any other final responsibilities of the deceased Grantor. Subparagraph 1 a., provides that the Trustee has the discretion to deal with the Personal Representative (same as Executor) of the Grantor’s estate and to purchase assets out of the estate (remember, assets inadvertently left out of the trust will pass by Will to the Trust from the estate) or make other arrangements, including lending money to the estate to satisfy the obligations of the estate. The Trustee should do whatever is prudent under the circumstances. The Trustee will not be responsible for any losses to the estate or the trust unless it is by gross negligence or willful misconduct. IRA funds payable to the Trust should NOT be used for debts.
Article III, subparagraph 2, directs the Trustee to then transfer the decedent's (the one who has died) share into the survivor’s trust. At the death of the first Grantor, the trust assets normally are deemed to be owned equally half-and-half. So, let’s suppose the husband died first. Under this clause we will put the husband’s share into the wife's share so that we still have one trust. However, we give the wife the right to “disclaim” this share and say she does not want it or a portion of it. If within nine (9) months of husband’s death she signs a disclaimer then those assets disclaimed will go into a separate share called the FAMILY TRUST. Let’s say, for the sake of discussion, we have $100,000 in the wife’s share and we had $100,000 in the husband’s share. That includes the land and all other assets in the trust. And say the wife had an auto accident and was being sued and did not want to expose those assets to her creditors, she could disclaim that $100,000 and say, “I do not want my husband’s half of the trust.” It then would pay into an irrevocable FAMILY TRUST.
Let us go further and say total assets were at $6.0 million. The tax exemption for each of Grantor is $5M, so we would disclaim all of her husband’s share by signing a document (Qualified Disclaimer) that says, “I hereby disclaim any interest in his share,” and then $3M of his assets would go into the FAMILY TRUST and the wife’s $3M would stay in the original revocable trust and neither trust would be later subject to estate tax. However, if wife had not disclaimed husband’s one-half of the assets, she would have had $6M in her share, and if the exemption were still $5M the tax at her death would be as high as $350,000. Therefore, by using the disclaimer to create this FAMILY TRUST, she will have saved the beneficiaries approximately $600,000 in estate taxes when wife dies, plus taxes on all the growth of the husband’s share over the rest of wife’s life would be divided. This is what a disclaimer can do for you. All of this that we just discussed about the disclaimers is in Article III, subparagraphs 2 a., b., and c.
Article III, subparagraph 3 provides that to the extent disclaimed, those assets pass into the FAMILY TRUST when then becomes irrevocable. This means that the surviving Grantor (spouse) has control over those assets as Trustee but is not the owner for tax purposes.
Article III, subparagraph 4, directs how the FAMILY TRUST is managed for the surviving Grantor. It provides that the Trustee pay all of the income of the Family trust to the surviving Grantor, and, if necessary, principal for the health, support, and maintenance of the surviving spouse. Additionally, the surviving Grantor may withdraw $5,000 or 5% of the principal, whichever is greater, for any purpose at the end of each year. The key to the FAMILY TRUST is that property in the Family Trust is not considered the property of the surviving Grantor. It is considered the decedent Grantor’s trust property and, therefore, will not later be taxed to the survivor. Nor is it normally subject to claims of creditors or to the claims of a second spouse should the surviving Grantor re-marry.
Subparagraph (d) provides that if the surviving Grantor has sufficient income and does not need the income from the FAMILY TRUST, the Trustee may pay it out to any beneficiary named in the trust (or their issue) for such beneficiary’s health, support, maintenance or education, which payments are totally within the Trustee's discretion. Before the Trustee pays out any income, however, he should consider other income and support available to that beneficiary from other sources. The Trustee may pay out more income to one beneficiary than the other, depending on need.
To protect the integrity of the trust, subparagraph e provides that to withdraw more than 5% of the principal of the FAMILY TRUST in any one year, the surviving Grantor must obtain the consent of the Successor Trustee (or the other Co-Trustee) if the surviving Grantor is serving as a Trustee of the Family Trust. The Successor Trustee can approve withdrawal of principal from the FAMILY TRUST for the health, support and maintenance of the surviving spouse. This Trustee could be one of the children of a Grantor or a beneficiary.
Article III, Paragraph D, addresses when the survivor is an institutionalized spouse. This is a very special provision incorporated into the trust to deal with the situation that if, at the time of the death of one of the Grantors, the survivor is in a nursing home. The Trustee pays the assets of the decedent Grantor’s share (up to $5M (2011-2012)) to the executor who will set up a special needs trust under the deceased Grantor’s will .
ARTICLE IV. DISPOSITION UPON DEATH OF GRANTOR
Article IV provides for the disposition of property in the trust after both Grantors have died.
Article IV, Paragraph A and B, provides that upon the death of the surviving Grantor, or the simultaneous death of both Grantors and the funding of the survivor's trust or the FAMILY TRUST, the First Successor Trustee or remaining Co-Trustee will pay the survivor's bills from the survivor’s trust share. Then, the Trustee divides the remaining assets of the trust into separate shares for the beneficiaries named in Article IX in the percentages set forth under that Article. If one of the beneficiaries has died, the children of that beneficiary would normally take their share. If there are no children, then the other beneficiaries would take the share. And if there are no other beneficiaries, then the trust will be divided up 1/2 to the husband’s heirs and 1/2 to the wife's heirs under the Anti-Lapse Clause contained in Paragraph B (or sometimes Paragraph C). As a result, the trust would provide that the assets would be split between the two families. However, if you have named other individual or charitable beneficiaries under this clause, then the assets would be divided among those named, when there was no one else to take under Article IX.
Article IV, Paragraph C, addresses the rule against perpetuities, which stated that if a trust is designed to prevent it from ever lapsing, then it is too long. The Virginia Code now permits you to avoid this rule for all assets (except for real estate) in Trust. Real estate must come out of the trust within ninety (90) years of the death of the Grantor unless conveyed to personal property (i.e. LLC).
ARTICLE V. MANAGEMENT OF TRUST ASSETS
Article V sets forth how the trust assets will be managed during the life of the trust.
Article V, Paragraph A, provides that if you have a grandchild or other beneficiary who takes under the trust, that person will get his or her share at a specified age, usually twenty-five (25), until then it may be used for their education, health, etc.
Article V, Paragraph B, provides that if a beneficiary under the trust is disabled, the Trustee shall manage his or her share for them as long as they are disabled.
Article V, Paragraph C, further provides that if any beneficiary under the trust is at any time institutionalized, then the Trustee is not to pay the funds to the institution -- or pay them in any way that would disqualify them from benefits that they might otherwise be entitled to.
Article V, Paragraph D, the spendthrift provision, deals with the creditors of a beneficiary and prohibits the beneficiary from alienating or pledging or otherwise encumbering their share of the trust before they actually receive it. In other words, the Trustee may disregard any claim by a creditor of a beneficiary for any part of this trust for as long as necessary.
Article V, Paragraph E, states that the Trustee can deal with the public and any corporation or bank without having to prove that they have authority to do what they’re doing.
Article V, Paragraph F, deals with separate property and means a spouse of a beneficiary has no claim on trust property.
Article V, Paragraph G, states that the Trustee can distribute trust assets in kind, i.e. stock certificates or personal property without liquidating them, or in cash.
Article V, Paragraph H, states that Grantors, or either of them, reserve the right to appoint an investment advisor. The Grantor can require the Trustee to consult with the investment advisor before the Trustee sells or buys assets.
NOTE: Virginia law now permits the Grantors to leave a notarized Memo directing how the Trustee(s) shall exercise discretion in carrying out their duties. This right must be mention in the trust agreement.
ARTICLE VI. TRUSTEES POWERS
Article VI, Paragraph A, sets forth the Trustee's general powers under the trust, as well as under the law. Also incorporated into the trust is the Virginia Code, Section 64.1-57, which enumerates a multitude of specific powers that a trustee may use in carrying out the Trustee’s responsibilities. A copy of that Code section will be included with the trust document when you sign it. In addition, we have included specific powers to deal with specific situations. For example, subparagraph 1, under Paragraph A, relaxes the “prudent person rule” for investing which says that the Trustee has the power to invest in anything the Grantors have invested in, even though a bank might not be authorized to invest in that kind of property. The Trustee is given the flexibility on how to credit income and principal. The power to separate and manage each share of a beneficiary is authorized or the Trustee can deal with all the shares under one fund.
Article VI, Paragraph A, subparagraph 5, provides that if an interest in your home is in the FAMILY TRUST, the survivor can continue to occupy and use it as his or her own residence without rent for the survivor's life. In addition, the survivor can instruct the Trustee to sell the residence and direct where the proceeds are to be reinvested. If the home is sold, part of the proceeds would go into the FAMILY TRUST.
Article VI, Paragraph A, subparagraph 6, provides that the Trustee can also purchase a burial trust for you, which is then exempt from Medicaid rules.
Article VI, Paragraph A, subparagraph 8, states the Trustee has the power to employ legal and/or professionals to assist the trust or act on behalf of the Trustee, if necessary, and to pay for such employment out of the principal or income of the trust assets.
Article VI, Paragraph B, provides that the Trustee can combine trusts, if necessary.
Article VI, Paragraph C, deals with the authority of the Trustee to make tax-free gifts, which can be used to move some assets from one the Grantors to their children or other beneficiaries if the Grantors were trying to preserve their estate and qualify for some benefit programs. As discussed earlier, the Federal tax law permits the Grantor to give up to $13,000 (for 2012) per year, gift tax-free -- not necessarily free of complications when trying to qualify for Medicaid benefits for long term care costs, within five (5) years of the gift.
Article VI, Paragraph D, provides that if any beneficiary or a child of either of the Grantors owes the Grantors money or the trust money upon the death of the last Grantor to die, the Trustee shall take the amount owed and deduct it from his or her share of the trust assets.
Article VI, Paragraph E, provides that any attorney-in-fact appointed by a Grantor in a Power of Attorney, has the right to withdraw any or all of the trust estate for any purpose outlined in the power of attorney or for any purpose described in the trust and the Trustee has no responsibility to see what the attorney-in-fact is doing with the money.
Article VI, Paragraph F, provides that if the Trustee, other than the Grantors finds that the trust is improperly drafted and it needs to be fixed, the Trustee can amend the administrative provisions to avoid taxes.
Article VI, Paragraph G, provides that if the trust corpus gets too small (say that its total value is now less than $100,000) and it is not feasible economically to keep it running because of the costs involved, then the Trustee can distribute the assets to the beneficiary or beneficiaries entitled to receive the assets. If, at some point, all that remains in the trust is land and the beneficiaries are all adults, the Trustee may deed the land to the beneficiary(ies) and close the trust.
ARTICLE VII. TRUSTEES
Article VII, Paragraph A, generally sets forth what happens when a trustee becomes incompetent, incapacitated, resigns or dies. With respect to the Grantors, acting as Trustees, if one of the Grantors dies or resigns, the other takes over. In the event of the death, resignation, incapacity or disability of the survivor, then the First Successor Trustee or Co-Trustees named in Article X, would take over. If the First Successor Trustee is not available to take over, then the Second Successor Trustee takes over, and so on. We may have included a provision that if the Grantor husband died or became disabled or incapacitated, the named First Successor Trustee will serve as Co-Trustee with the Grantor wife, then at the time the Grantor wife died or became disabled or incapacitated, the First Successor serves alone. We may have also written in this provision that a named Successor Trustee(s) are really two (2) Co-Trustees, who may serve together or either may act after consulting with the other. If they cannot agree, the next Trustee can be named as the tie-breaker. This clause can be drafted to meet your requirements as to who will manage the trust assets, either during disability or incapacity, or after the deaths of Grantors.
In addition, a Trustee is not required to give any surety on his or her bond (if required) or have a bond, and a Trustee is not required to make any reports to any courts. However, a Trustee (other than either of you serving as Trustee) must keep records on what they do with the assets. If a Trustee becomes disabled, (all that is needed is one doctor to say they are unable to run the trust) then the next named Trustee serves, or if there is none, then one named or appointed by the last serving Trustee, otherwise a majority of the income beneficiaries (not under a legal disability) may appoint one.
Article VII, Paragraph D, Commission of Trustee provides for the payment of a fee or commission for the Trustee. A Trustee is entitled to be reimbursed for its costs. A Trustee is also entitled to a reasonable fee. However, if a Trustee is related by blood or marriage to a Grantor and is a beneficiary under the trust, the Trustee’s entitlement to a fee will be limited--usually to one-half of one percent (.5%) of the principal of the trust assets per year per Trustee. If we have named a corporate Trustee as successor, then a clause will be included to entitle a corporate trustee to receive compensation in accordance with their published fees in effect at the time they are serving as Trustee.
Article VII, Paragraph E (or sometimes Paragraph F), Removal of Trustee clause, sometimes included, states that a majority of the beneficiaries can remove a Trustee. For example, if a Trustee were to sit on the job and not do anything, then a majority of the beneficiaries may remove the Trustee and put in another trustee.
Article VII, Paragraph F, Sole Signature clause, states that at any time a Trustee is acting as a Co-Trustee, the single signature of one Trustee is enough to direct the management of the trust. If one has died and the survivor is named a Co-Trustee to serve with him or her, the survivor would not have to get the Co-Trustee’s permission to sign things; however, likewise, the Co-Trustee would not have to obtain permission either. We can change that provision to the Grantors’ preference. We can also include a provision that says that in the event there are multiple Co-Trustees, the majority has to act or they have to consult with the other before acting alone, or that they must act together. This is a clause that is tailored to your individual needs and wants.
Sometimes included in Article VII, a “Reimbursement of Guardian Expenses” clause, which provides that should a guardian of a minor beneficiary incur personal expense in the support and maintenance of such beneficiary, the Trustee is authorized to disburse funds from that minor's trust funds to reimburse the guardian for reasonable expenses incurred in keeping the minor beneficiary.
Article VII, Paragraph G, states that if any dispute or disagreement arises among the acting Trustees the back-up Trustee will be the tie-breaker.
ARTICLE VIII. MISCELLANEOUS PROVISIONS
Article VIII deals with miscellaneous provisions and definitions. We define what “issue” is--any descendant of Grantor, and “per stirpes” means distribution by the generations as opposed to “per capita” which is by the number of people surviving. Under this trust, a child’s children would take only that child's share. In addition, this is a Virginia trust and the laws of Virginia should govern the provisions contained in the trust. Under Paragraph C, you can change the place of the trust or the “situs” of the trust as you see fit. And the Trustee may change it for Grantors if Grantors move to another state.
Paragraph F provides for what happens if both of the Grantors should die together and you cannot tell who died first (this determination has to be made in order to know whose estate will be the one to manage the trust) or if the husband does not survive the wife by 120 hours, we generally presume that the husband dies first. There is no specific formula to determine this. Usually, it is just that the husband has more assets than the wife. There may be some occasions when we would want the husband to survive the wife, and in that case we will make this provision read opposite.
Paragraph G deals with Disclaimers which were discussed previously, and that each Grantor and the Trustee has the right to disclaim any property during the period specified by law.
ARTICLE IX. FINAL DISTRIBUTION
Article IX lists the beneficiaries and what percentage or share of the trust assets the Grantors want them to take at their deaths. This could be equally or specific percentages, or specific property and a percentage. It could also be specific stocks, a certain cash amount, etc., whatever are the Grantor’s wishes. The Surviving Grantor can change this provision as to the survivor’s trust.
ARTICLE X. ESSENTIAL INFORMATION
Article X sets forth the Grantor's names and addresses and the names and addresses of your Successor Trustee(s).
ASSIGNMENT OF UNTITLED TANGIBLE PERSONAL PROPERTY
Now, after the signature and notary pages, we have an Assignment of Personal Property whereby the Grantor(s) put their tangible personal property (household furniture, tools, sporting equipment, etc., anything that does not have a title) in the trust by assigning the property to your Trustees. The car, truck, or boat has a title so it would not apply. In some instances (if the car or boat has a significant value), then we might transfer the title to the trust, but usually, it just includes the personal property and jewelry, etc. Should a Grantor desire specific items of personal property to be given to specific beneficiaries or persons after they have assigned the property to the Trustees, then they will need to make a list of who is to get what and place it with the trust document for the Trustee to follow upon their deaths. However, if the Grantors fail to leave a list (or Memorandum), then the Trustee will follow the directions in their Last Wills and Testament for the distribution of the tangible personal property.
SCHEDULE A.
As discussed earlier, Schedule A is a list of the assets that the Grantors are putting in the trust and that they consider each owning one-half. Schedule A also lists real property, stocks, bonds, and other securities identified, the contents of safe deposit boxes and then has a place to list at what bank they may have a safe deposit box and the box number, their checking, savings, and brokerage accounts. The Grantors should fill in all this information in their copies of the trust agreements. In addition, they should make a copy after all the assets have been transferred and listed on the Schedules and send it to me so that we may have it in our files.
SCHEDULE B.
Schedule B is a list of any assets that would be considered to be solely in the Husband’s share of the trust. As discussed, this might be an interest in a partnership or the family farm.
SCHEDULE C.
Schedule C is a list of any assets that would be considered to be solely in the Wife’s share of the trust.
SCHEDULE D.
Schedule D is a sample memorandum to be used to provide a list for distributions of personal effects.
SCHEDULE E.
A list of gifts of untitled tangible personal property (i.e. things).
Updated 9/8/2011
|
