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Terminating a Revocable Living Trust... Avoid
Probate After Death
by Phil Craig
Most of our attention is spent focused on the creation
and maintenance of our revocable living trust.
But what happens after we die?
How does the trust carry out its terms and end?
Basically, the process of terminating a revocable living
trust upon a death is the reverse of the creation of the
revocable living trust.
First, the trustee will collect and value the assets held
in the trust (or put into the trust after the death occurs,
such as life insurance).
This is called the "inventory and appraisement." This is done
to determine if an estate tax is due. It is also done to make
sure all assets have been located and all bills (creditor's claims)
have been paid.
While this is happening, the trustee will also send notice of
the death to the beneficiaries and to potential creditors
(medical providers, funeral homes, etc.). This starts a statutory
time period that creditors can make claim against the trust for
payment.
After the inventory and appraisement is complete, the trustee
will determine if an estate tax is due and payable. If so, the
necessary forms will be prepared, filed, and the tax paid.
Once the creditors claim period has expired and the estate tax
return has been accepted, then the trustee is ready to make
distribution according to the directions contained in the revocable
living trust.
The whole process of winding up and terminating a revocable living
trust is very similar to the probate process. The main difference
is that the trust administration is handled privately by the trustee,
while the probate administration is done under the supervision of the
probate court.
Good luck and until next time,
Phil Craig
P.S. Did you
know you can search this site or the web for more Living Trust, Wills,
Estate Planning and Probate answers?
Click here!
Phil Craig is a licensed attorney and entreprenuer.
He started practicing law at age 25 in 1979.
He does not take on any more clients, but is
advisor to some of the biggest names in the internet
world. He shares his knowledge gained over the
last 25 years at his Living Trust Secrets newsletter site:
click here=========>http://www.LivingTrustSecrets.com
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