Book SummaryMake Your Own Living Trust, by Denis Clifford

1-Page Summary1-Page Book Summary of Make Your Own Living Trust

Exploring the Advantages and Fundamentals of Living Trusts.

This section of the text explores the essential concepts and features of revocable living trusts, underscoring the benefits and potential drawbacks as outlined in the book "Make Your Own Living Trust." Living trusts offer a flexible approach to managing your assets while you are alive and guarantee an uncomplicated transfer of your estate to your heirs, eliminating the requirement for probate after you pass away.

A manual for grasping the fundamentals of living trusts.

This section of the text establishes a strong foundation by describing what living trusts are, how they are created, and illustrating how they help avoid the process of probate. The primary function of a trust that can be altered or annulled by the grantor is to ensure a seamless transfer of assets to beneficiaries, bypassing the time-consuming probate proceedings and allowing heirs to receive their legacy quickly and privately.

The concept relates to an agreement of trust that is recognized by law.

Clifford characterizes a trust as a legal concept that, despite its intangible nature, is acknowledged by the law as though it were an actual individual. A living trust is established when a legal document called a "declaration of trust" is executed, yet it does not take the form of a physical item that can be observed or touched. The trust document delineates its creation and identifies the key participants: the person establishing the trust, the trustee managing the trust's assets, the successor trustee who takes over when the originator passes away, and the beneficiaries designated to inherit the trust's assets following the death of the originator.

In a living trust, you serve simultaneously as the main trustee and the chief beneficiary throughout your life, whereas in conventional trusts, these positions are usually separate. Upon your demise, the appointed trustee will assume control and distribute the assets among the designated beneficiaries.

A trust that can be modified or completely revoked by the creator.

Clifford emphasizes the flexibility of revocable living trusts, highlighting that grantors retain control over their assets until their demise. When you create a revocable living trust, you act both as the creator and the first trustee. Specify a person in your living trust to take charge of the trust's holdings after your demise, pinpoint the beneficiaries, and meticulously list all items and real estate encompassed by the trust. You can adjust, revoke, or make changes to the trust according to your wishes at any time before your death. Throughout the different stages of your life, it ensures that your wishes remain current.

You continue to oversee the assets contained within the living trust. You have the autonomy to manage, distribute, or leave your assets in line with your personal wishes. Upon your demise, the true value of a living trust is actualized as it becomes irrevocable, providing clear instructions for the appointed trustee to distribute your assets, eliminating the necessity for judicial involvement.

Living trusts are structured to bypass the process of probate.

Denis Clifford highlights the efficiency of living trusts in facilitating property transfers without the need for probate proceedings. Probate is a lengthy judicial process that authenticates a will, settles outstanding debts, and distributes the deceased's property as appropriate. The procedure frequently extends beyond a year and may result in significant costs, encompassing attorney fees and judicial costs. Property is transferred directly to beneficiaries through a living trust, avoiding any legal proceedings. Creating a living trust not only protects assets and ensures their safekeeping but also ensures that the distribution of these assets is kept private and secure.

The authors emphasize the necessity of selecting a dependable person to assume the critical position of managing the living trust as the successor trustee. Upon the grantor's passing, the designated individual assumes the role of managing the trust's instructions, allocating the assets to the heirs, and supervising any trusts set up for underage beneficiaries. The successor trustee must be dependable, given that they will oversee the trust autonomously, without oversight from the courts.

Advantages linked to the implementation of living trusts.

In his discussion, Clifford also highlights other benefits linked to establishing living trusts. These advantages include maintaining privacy, flexibility, skilled management, and formulating plans for managing the inheritance given to young individuals who are not yet of legal age.

Avoiding the complex and costly process that is typically involved with probate court.

The authors highlight the significant reduction in expenses and duration that can be realized by avoiding the probate process. Establishing a living trust can minimize the costs associated with legal and judicial proceedings, ensuring that a larger share of your assets remains safeguarded for those you wish to inherit them. The process of probate can lead to significant expenses and typically requires a lengthy period, potentially diminishing a substantial portion of an estate's value.

Clifford highlights that probate expenses are often derived from the estate's entire gross value, which includes all assets without deducting any liabilities. This can lead to considerable costs, irrespective of the estate's overall value. Creating a living trust ensures that your assets are...

Make Your Own Living Trust Summary Different Types of Living Trusts and Related Holdings

This section delves into the assortment of living trusts that are customized according to an individual's marital status and provides guidance on choosing which assets should be placed into the trust, following the recommendations of Denis Clifford. Denis Clifford highlights the benefits of a living trust, which not only allows one to bypass the probate process but also enables the distribution of assets to heirs who are under 35 years old.

Individuals have the capability to create living trusts on their own.

Clifford demonstrates how individuals can create a living trust independently, allowing them to avoid the probate process for their entire estate, even for assets jointly owned with siblings or other individuals. Establishing a trust enables you to specify precisely which beneficiaries will receive certain assets when you pass away.

Creating a trust that can be altered or rescinded by the grantor.

When establishing a living trust independently, make use of the single-person format provided in the book (Form 1). This uncomplicated framework enables the allocation of a portion or all of your assets to selected beneficiaries.

Moving a variety of assets into...

Make Your Own Living Trust Summary Deciding on trustees and identifying the beneficiaries of the trust.

Clifford delves into the essential duties of choosing beneficiaries for your living trust and appointing managers for its administration posthumously, emphasizing the deeply personal nature of these decisions during the trust's creation. The person you designate to oversee the trust upon your demise plays a pivotal role in ensuring a smooth transfer of your assets, and the decisions you make concerning the recipients will determine the distribution of your property.

Choosing a person or an organization to act as the substitute trustee.

Clifford explains that identifying a trustworthy and competent successor trustee is vital, as this person (or institution) will handle the administration of trust property and its transfer to your named beneficiaries. He assesses the responsibilities incumbent upon the successor trustee, deliberates on the option of designating multiple trustees in succession, and pinpoints circumstances in which selecting an institution to act as trustee would be suitable.

Responsibilities and powers conferred upon subsequent trustees.

The writer details the crucial duties a successor trustee is obligated to perform, and these duties differ depending...