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“There are important differences between the trust-millapproach and that of such well-respected products asNolo’s Make Your Own Living Trust.”WithWALL STREET JOURNALDownloadableFORMS14TH EDITIONMake Your OwnLiving TrustAttorney Denis Clifford, Avoid probateauthor of the bestseller, Plan Your Estate Understand how living trusts work Learn how to transfer propertyinto your trustINCLUDES WORKSHEETS,FORMS & INSTRUCTIONSFree Legal Updates at Nolo.com
Download Forms on Nolo.comYou can download the forms in this book at:www.nolo.com/back-of-book/LITR.htmlWe’ll also post updates whenever there’s an important change to thelaw affecting this book—as well as articles and other related materials.More Resourcesfrom Nolo.comLegal Forms, Books, & SoftwareHundreds of do-it-yourself products—all written in plain English,approved, and updated by our in-house legal editors.Legal ArticlesGet informed with thousands of free articles on everyday legal topics.Our articles are accurate, up to date, and reader friendly.Find a LawyerWant to talk to a lawyer? Use Nolo to find a lawyer who can helpyou with your case.
The Trusted Name(but don’t take our word for it)“ In Nolo you can trust.”THE NEW YORK TIMES“ Nolo is always there in a jam as the nation’s premier publisherof do-it-yourself legal books.”NEWSWEEK“ Nolo publications guide people simply through the how,when, where and why of the law.”THE WASHINGTON POST“ [Nolo’s] material is developed by experienced attorneys whohave a knack for making complicated material accessible.”LIBRARY JOURNAL“ When it comes to self-help legal stuff, nobody does a better jobthan Nolo ”USA TODAY“ The most prominent U.S. publisher of self-help legal aids.”TIME MAGAZINE“ Nolo is a pioneer in both consumer and business self-helpbooks and software.”LOS ANGELES TIMES
14th EditionMake Your OwnLiving TrustAttorney Denis CliffordLAW for ALL
FOURTEENTH EDITIONMARCH 2019EditorBETSY SIMMONS HANNIBALCover DesignSUSAN PUTNEYProductionSUSAN PUTNEYProofreadingSUSAN CARLSON GREENEIndexSONGBIRD INDEXING SERVICESPrintingBANG PRINTINGISBN: 978-1-4133-2601-7 (pbk)ISBN: 978-1-4133-2602-4 (ebook)ISSN: 2329-4256 (print)ISSN: 2329-4264 (online)This book covers only United States law, unless it specifically states otherwise.Copyright 1993, 1996, 1998, 2000, 2004, 2005, 2007, 2009, 2011, 2013, 2015, 2017,and 2019 by Denis Clifford. All rights reserved. The NOLO trademark is registered inthe U.S. Patent and Trademark Office. Printed in the U.S.A.No part of this publication may be reproduced, stored in a retrieval system, or trans mittedin any form or by any means, electronic, mechanical, photocopying, recording, or other wisewithout prior written permission. Reproduction prohibitions do not apply to the formscontained in this product when reproduced for personal use.Please noteWe believe accurate, plain-English legal information should help you solve many ofyour own legal problems. But this text is not a substitute for personalized advice from aknowledgeable lawyer. If you want the help of a trained professional—and we’ll alwayspoint out situations in which we think that’s a good idea—consult an attorney licensedto practice in your state.
DedicationOnce again, to Naomi.AcknowledgmentsMy thanks to all those friends who helped me with this book, both putting ittogether and over the years:First, to friends at Nolo, without whose aid this book would never haveremained in print: Betsy Simmons Hannibal, my editor extraordinaire, anda pleasure to work with; my former editors, Mary Randolph and Shae Irving;Stephanie Harolde, who prepared so many drafts of the book so well and didmuch fine editing, too; and Ella Hirst, for her fine research.Second, to Mark Peery, of Greenbrae, California, a superb estate planninglawyer (and great friend).Third, to Toni Ihara, a spirit forever joyous—thanks again for getting me intoall this.Fourth, to Attorney Magdalen Gaynor, of White Plains and New York City,New York, an excellent estate planning lawyer who gave me informationgenerously and cheerfully.Fifth, to other friends who helped me with this book: Linda Moody, of MillValley, California, a law school friend who’s become another superb estateplanning lawyer; Ken Fisher, of Pleasant Hill, California; and the many,many other people who helped with this book and, over the years, with earliermaterials I’ve written about living trusts.And finally, my heartfelt thanks to my clients from past years, from whomI learned so much reality I could never have learned in books or school(sure never did in law school), and also to the many readers of earlier editionsof this book who wrote me with suggestions, comments, corrections, andother thoughts that contributed greatly to this edition.
About the AuthorDenis Clifford practices estate planning law in Berkeley, California. He is the authorof several Nolo books, including Plan Your Estate and the Quick & Legal Will Book.A graduate of Columbia Law School, where he was an editor of the Law Review,he has practiced law in various ways, and has become convinced that people cando much of their own legal work.
Table of ContentsYour Legal Companion for Making Your Own Living Trust. 11Overview of Living Trusts. 3Living Trusts Explained. 4Probate and Why You Want to Avoid It. 6Avoiding Probate. 8Living Trusts and Estate Taxes. 9Other Advantages of a Living Trust. 9Possible Drawbacks of a Living Trust. 112Human Realities and Living Trusts. 13Leaving Unequal Amounts of Property to Children.14Second or Subsequent Marriages.15Single People.16Disinheriting a Child.16Unmarried Couples.17Same-Sex Couples.17Communicating Your Decisions to Family and Friends.183Common Questions About Living Trusts.19Does Everyone Need a Living Trust?.21If I Prepare a Living Trust, Do I Need a Will?.23How Can I Leave Trust Property to Children and Young Adults?.23Will My Living Trust Reduce Estate Taxes?.24Will I Have to Pay Gift Taxes? .24Will a Living Trust Shield My Property From Creditors?.24Do I Need a “Catastrophic Illness Clause” in My Trust?.25How Does Where I Live Affect My Living Trust?.26Can I Place Real Estate in a Living Trust?.27Can I Sell or Give Away Trust Property While I’m Alive?.29Is a Bank Account Held in Trust Insured by the FDIC?.30Will Property in My Living Trust Get a “Stepped-Up” Tax Basis When I Die?.30Who Must Know About My Living Trust?.31What About Free Living Trust Seminars?.31Could Someone Challenge My Living Trust?.31
4What Type of Trust Do You Need?.33If You Are Single.34If You Are Part of a Couple.34Individual Trusts for Members of a Couple.35Shared Living Trusts.36AB Trusts.395Choosing What Property to Put in Your Living Trust.43Listing the Property to Be Put in Your Trust.44Property You Should Not Put in Your Living Trust.45Property You Can Put in Your Living Trust.48Marital Property Laws.53Completing the Property Worksheet.576Trustees.67The Initial Trustee.68The Trustee After One Spouse’s Death or Incapacity.69The Successor Trustee.697Choosing Your Beneficiaries.77Kinds of Trust Beneficiaries.78Naming Your Primary Beneficiaries.79Simultaneous Death Clauses.80Shared Gifts.80Some Common Concerns About Beneficiaries.82Naming Alternate Beneficiaries.84Residuary Beneficiaries.86Disinheritance.87Putting Conditions on Beneficiaries.90Property That Is No Longer in Your Trust at Your Death.91Beneficiary Worksheets.918Property Left to Minor Children or Young Adults.95Property Management Options.96Which Method Is Better for You: Child’s Trust or Custodianship?.97Tax-Saving Educational Investment Plans.98Child’s Trusts. 100Custodianships. 1039Preparing Your Living Trust Document. 107Choosing the Right Trust Form. 108Making Changes to a Trust Form. 108Step-by-Step Instructions. 109Prepare Your Final Trust Document.131Consider Having Your Work Checked by a Lawyer.132Sign Your Living Trust in Front of a Notary.132
10Transferring Property to Your Trust.135Paperwork. 136Technical Ownership. 138Certifications of Trust. 138Real Estate.142Bank Accounts and Safe Deposit Boxes.145Securities. 146Vehicles, Boats, and Planes.147Business Interests.147Limited Partnerships. 148Copyrights. 148Patents. 149Royalties. 14911Copying, Storing, and Registering Your Trust Document.151Making Copies.152Storing the Trust Document.152Registering the Trust.15312Living With Your Living Trust.155Adding Property to Your Living Trust. 156Selling or Giving Away Trust Property. 156When to Amend Your Living Trust Document.157Who Can Amend a Living Trust Document.159Making Changes to Your Trust. 160Revoking Your Living Trust. 16313After a Grantor Dies. 165Who Serves as Trustee After the Grantor’s Death. 1
About the Author Denis Cliffordpractices estate planning law in Berkeley, California.He is the author of several Nolo books, including Plan Your Estate and the Quick & Legal Will Book. A graduate of Columbia Law School, where he was an editor of the Law Review, he has practiced law
