Page 44 - Book10E

“Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game.”
– Donald Trump
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death. Like a will, a revocable living trust gives instructions as to how the trustor’s assets are to be distributed at the time of his death.
Your tax advisor, attorney, or estate planning professional can guide you through the various tasks associated with each step in creating a trust. Suggested steps for creating a trust include:
1 . Identify Assets—Decide which assets you wish to place in trust and how you wish the assets to be managed during your lifetime.
2 . Specify Beneficiaries and Distribution—Identify the individuals and charities the trust is to make distributions to after your death.
3 . Select a Trustee—Your trustee will be responsible for administering your assets during and beyond your life- time. If you decide to name an individual, you should also name a successor trustee in the event of the original trustee’s resig-
nation, unsuitability, incapacity, or death.
4 . Draft Your Trust Agreement—Work with your attorney to draft a document that achieves your estate-planning objec- tives and reflects your personal intentions.
File a copy with your trustee and successor trustee. A typical revocable trust agreement would cover, among others, the following points.
• Designation of the trustee
• A statement of the investment powers granted to the trustee
• Instructions for payment of income and principal during the grantor’s lifetime and for distribution of assets thereafter
• Instructions for the trustee to maintain records of the trust’s income, disbursements, and principal transactions
• Specification of any additional responsibilities assigned to the trustee
Creating a Trust