Living Wills and Trusts : How to Distinguish Between Them;Probate and Taxation; Intestate Succession, Tips on Writing Your Own Will

by Crouch, Holmes F.

• ISBN13: 9780944817742
• ISBN10: 0944817742
• Format: Paperback
• Copyright: 2005-04-28
• Publisher: Allyear Tax Guides

Summary

In an effort to give readers the benefit of foresight when preparing for their own death, this guide explains the features and differences between living wills and living trusts and details the variations in distributing assets so that readers can make informed decisions about which prepared testamentary instrument is the best fit for their own estates and situations. Probate and after-death taxation are clarified, and pointers for writing one's own will are given. Also covered are the roles of trustees and executors, other living options, and identifying distributors.

Author Biography

Holmes F. Crouch has been an IRS-licensed tax practitioner and consultant for more than 25 years. He is the author of Small C&S Corporations, Rental Real Estate, and Your Trustee Duties. He lives in Saratoga, California.

Table of Contents

1. INTESTATE SUCCESSION	1-1	(1)
Absence of a Will is Key	1-2	(1)
Probate Procedures Apply	1-4	(1)
Surviving Spouse Protection	1-5	(1)
Separate Property of Decedent Spouse	1-8	(1)
When No Surviving Spouse	1-9	(1)
More on Predeceased Spouse	1-11	(1)
Escheat of Decedent's Property	1-13	(1)
2. TESTATORS & TRUSTORS	2-1	(1)
Freedom of Testation	2-2	(1)
Testamentary Capacity	2-3	(1)
Tests for Soundness	2-4	(1)
Example Preamble by Testator	2-6	(1)
Make Revocations as Backup	2-7	(1)
Trust Titling Options	2-9	(1)
Example Preamble by Trustor(s)	2-12	(1)
Signaturizing & Witnessing	2-13	(1)
3. FEATURES OF A WILL	3-1	(1)
Purpose & Contents	3-2	(1)
Construction & Interpretation	3-3	(1)
Joint Wills: No-No	3-6	(1)
Simultaneous Deaths	3-7	(1)
Percentages or Dollars?	3-9	(1)
The Disinheritance Clause	3-12	(1)
Holographic Wills	3-13	(1)
Statutory Will Forms	3-14	(1)
Attorney Not Necessary	3-15	(1)
Nonprobate Transfers	3-18	(1)
4. FEATURES OF A TRUST	4-1	(1)
State Law Provisions	4-2	(1)
Manifestation of Intent	4-4	(1)
Designation of Trust Property	4-6	(1)
A "Pots and Pans" Will	4-7	(1)
Avoidance of Probate	4-8	(1)
While Both Trustees Alive	4-12	(1)
Subtrusts for First Decedent	4-13	(1)
Death of Surviving Trustor	4-15	(1)
Successor Trustees & Powers	4-16	(1)
Designation of Beneficiaries	4-18	(1)
Should Limit the Number	4-19	(1)
Contingency Clauses Ad Nauseum	4-21	(1)
Rule Against Perpetuities	4-23	(1)
5. WILLS & TRUSTS COMPARED	5-1	(1)
Identical Soundness of Mind	5-2	(1)
Estate Accounting the Same	5-3	(1)
Distribution Time Difference	5-5	(1)
Dollar Value Distinctions?	5-7	(1)
Wills are Simply Simpler	5-9	(1)
Estates Under $100,000	5-11	(1)
Best Argument for a Trust	5-12	(1)
Certification of Trust	5-14	(1)
Organizational Formalities	5-15	(1)
6. EXECUTOR, TRUSTEE ROLES	6-1	(1)
Appointment Process: Executor	6-2	(1)
Appointment Process: Trustee	6-3	(1)
Duties & Powers of Executor	6-5	(1)
Role of "Letters Testamentary"	6-6	(1)
IRS Form 706: Yes or No?	6-9	(1)
Income Transition Form 1041	6-10	(1)
Identification Duty of Trustee	6-12	(1)
Trustee as "Investment Manager"	6-13	(1)
Annual Use of Form 1041	6-15	(1)
7. OTHER LIVING OPTIONS	7-1	(1)
Joint Tenancy: WROS	7-2	(1)
Probate Avoidance Only	7-4	(1)
Some Practical Examples	7-5	(1)
Retained Life Estate	7-6	(1)
Annual Exclusion Gifts	7-8	(1)
Larger Gifts Permitted	7-10	(1)
Tracking Taxable Gifts	7-11	(1)
Grant of Certain Powers	7-14	(1)
8. KNOWING YOUR PROPERTY	8-1	(1)
Realty and Personalty	8-2	(1)
Four Classes Defined	8-	(1)
Separate Ownership of Property	8-5	(1)
Husband and Wife Property	8-7	(1)
Joint Tenancy vs. Tenancy in Common	8-9	(1)
IRS Property Schedules	8-11	(1)
Schedules B & C: Intangibles	8-13	(1)
Schedule D - Life Insurance	8-14	(1)
Schedules E & F - Other Property Items	8-15	(1)
Schedules G, H, & I	8-16	(1)
9. IDENTIFYING DISTRIBUTEES	9-1	(1)
Cite Family Status First	9-2	(1)
Clarifying Other Names	9-4	(1)
Deceased Married Child	9-5	(1)
Divorce and Remarriage	9-7	(1)
5 Classes of Children	9-9	(1)
Married Without Children	9-11	(1)
Unmarried: No Children, No Siblings	9-13	(1)
Precautions with Charities	9-14	(1)
Abuse of Charity Example	9-16	(1)
Generation-Skipping Transfers	9-17	(1)
10. THE PROBATE PROCESS	10-1	(1)
The Purpose of Probate	10-2	(1)
Pre-Visit the Probate Court	10-3	(1)
Check-the-Box Type Forms	10-6	(1)
Starting the Process	10-8	(1)
Taking Possession of Estate	10-11	(1)
Meaning of "Independent Administration"	10-12	(1)
Final Accounting & Disposition	10-15	(1)
11. THE TAXATION PROCESS	11-1	(1)
Start with Form SS-4	11-3	(1)
Information Returns: Forms 1099 11-4
Form 1040 vs. Form 1041	11-6	(1)
Death Year 1040 "Final"	11-8	(1)
Short Span of Estate 1041	11-9	(1)
Role of Schedule K-1	11-10	(1)
Transfer Taxation: 3 Kinds 11-10
Form 706: "Yes" or "No" 11-12
When No Form 706 Required 11-15
12. WRITING YOUR OWN WILL	12-1
Sample Preamble Wording	12-2	(1)
Revocation is "First"	12-3	(1)
Declaration of Heirs: "Second"	12-5	(1)
Appointment of Executor: "Third"	12-6	(1)
Delegation of Powers: "Fourth"	12-7	(1)
Declaration of Property: "Fifth"	12-9	(1)
Declaration of Gifts, etc.: "Sixth"	12-10	(1)
Bequests to Spouse: "Seventh"	12-12	(1)
Common Disaster Clause: "Eighth"	12-13	(1)
Young Adults & Spendthrifts: "Ninth"	12-15	(1)
Minors & Disabled: "Tenth"	12-17	(1)
Bequests to Others: "Eleventh"	12-19	(1)
The $1 Clause: "Twelfth"	12-21	(1)
The Witness Paragraph	12-22