The Living Trust
by James V. Quillinan, Attorney at Law
The Letitia Building
70 South First Street
San Jose, California 95113-2406
| Privacy Management of Assets |
Post-Death Must Transfer Titles |
Most of us know why we ought to make a Will.
How few of us know why we really ought to make a
Trust instead of a Will?
The revocable inter vivos trust (Living Trust) is hardly a familiar term but this vehicle is becoming frequently used in place of the traditional Last Will and Testament.
The concept is straightforward: During your lifetime, you create the Trust by executing a trust agreement which names you and/or your spouse as the sole trustees. You then tansfer title of your assets to your trust.
- With a Living Trust you control your finances just as you are now accustomed.
- Creating a Living Trust neither saves nor causes taxes.
- Creating a Living Trust does not affect tax filing requirements whatsoever as long as you or your spouse is trustee. You file your 1040 as usual. At death, a final 1040 income tax and the Estate Tax return is filed.
- On your death, your Living Trust distributes your Trust Estate to your named beneficiaries and charitable organizations just as your Will would distribute your Probate Estate.
