THE "LIVING TRUST"

Well, the Power of Attorney is obviously a tool that may or may be helpful when considering one's "estate planning" in the event of disability. Have you read all the local ads for "Living Trusts"? This is different than the "Living Will" which typically is a document that provides instructions about your wishes concerning medical treatments or life-sustaining measures if you have a terminal condition, become permanently unconscious or are in a persistent vegetative state and lack the capacity to make or communicate those decisions. A living will "speaks" for you only when you are unable to communicate your wishes concerning health-care decisions or life-sustaining measures (many of these living wills are being replaced with statutory health care proxies, an issue to be discussed later). But recently, many of you have been hearing about "living trusts". Seminars are being sponsored by attorneys in which a presentation is made, refreshments are served and free consultations are offered. Fees can even be discussed with discounts available if you act within a certain time. Since we have been exploring the new Power of Attorney, let us now explore the "living trust". They are merely an old creature called revocable trusts. Revocable trusts have become increasingly popular in estate planning. Many people believe that by creating a revocable trust, naming themselves as trustees, and transferring their assets to the trust, they will save taxes, simplify the administration of their estates, and save money for their children or other beneficiaries. Unfortunately, these beliefs are not based in fact and are typical of the myths that surround so-called "living trusts." This will be the next topic of discussion.