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| While “Living Trusts” are sold with
the idea of saving money (principally legal fees),
their use should be tempered by these considerations: |
| Setting up a trust can cost several thousand dollars,
much more than a simple will, which typically costs
a few hundred dollars. Companies that market these
trusts typically have no attorney involved and have
their customer sign preprinted forms, that are not
tailored to individual needs, for which they often
charge over $2,000. |
| There will still be a need for an attorney to assist
the trustee in performing some or all of the following
duties (which must be performed whether or not probate
is avoided). |
| Among the items that always need
to be addressed are: |
| Hold and property invest trust assets
Preparation of the death tax returns
Preparation of decedent’s final income tax
return(s)
Preparation of fiduciary income tax return(s)
Insurance: claims for life and health, maintenance
and casualty
Collect debts due decedent
Pay just debts and expenses
Consider disclaimers and renunciations
Fairly distribute and obtain receipts for household
goods and similar tangible property usually not
held in trust
Account for all receipts and disbursements to the
heirs
Distribute assets to the heirs and obtain proper
receipts and releases
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| Among other items that may need
to be addressed are: |
Paying the family exemption, if applicable
Spousal election to take under or against the estate
Advertise an estate, if creditors are a problem
Safe deposit box inventory
Operation of business
Possession, insurance and maintenance of realty |
| In summary, there will be fees for services after
death which, with the cost of the Living Trust, may
equal or exceed an attorney’s fee for normal
probate. |
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