MORE ON "THE LIVING TRUST"

And finally from Attorney Evans: "Myth # 4: Even if it might do no good, a living trust will do no harm. Not necessarily. In their desire to avoid the alleged evils of "probate," many people jump out of the frying pan and into the fire, running directly into the arms of charlatans who are eager to sell "packages" of living trusts for exorbitant fees. And those trust documents may be poorly written, with the result that large fees have been paid for documents that actually result in unnecessary taxes, legal fees, or court costs. And the probate system is not without its advantages, because it requires notices to beneficiaries and a clear remedy if the estate is not distributed according to the will. In their desire to avoid probate litigation, many people create trusts that give fewer rights to their beneficiaries and so, if the trustee turns out to be dishonest or hostile, the beneficiaries of a living trust may find themselves hampered by the trust document in their attempts to recover their inheritances." His conclusion is that "Living trusts are good for some people, but not for everyone. Living trusts have both advantages and disadvantages, but most people don't need them and aren't helped by them. A living trust is most likely to benefit someone who lives in a state with complicated or expensive estate administration requirements .....who has life insurance or retirement benefits which need to be held in trust after death (because of minor children or for tax reasons), who owns real estate in other states (which might require probate proceedings in those other states), or whose investments are already being held and managed by some other person and that other person could serve as trustee at little or no additional cost." He also notes that the AARP publishes a booklet, "A Consumer's Guide to Living Trusts and Wills", a copy of which can be obtained by sending an email request to member@aarp.org. Now, there is still something that bothers me about the "Living Trust" and this discussion will continue.