TRUSTS

A trust is a legal arrangement through which you give property to a trustee to manage and use, for the benefit of whomever you name. There are two main types of trusts:

¨ Living ("inter vivos") - which take effect during your lifetime. Living trusts may be revocable or irrevocable.

¨ Testamentary - which go into effect when you die.

Trusts should be prepared in conjunction with a will, ensuring that any assets not placed in trust are transferred to your beneficiaries.

Revocable Living Trust: This form of Trust can assist one in avoiding probate. Probate is a complicated and time consuming process. It attempts to insure that proper safeguards are followed, so that all debts are paid, no assets of the Estate are stolen, and all heirs and beneficiaries are properly protected.

In addition to the benefit of avoiding probate, you will be able to select someone to make decisions and act on your behalf should you become incapacitated or incapable of making decisions.

Irrevocable Living Trust: This is a method to transfer ownership of an asset without making an outright, unconditional gift. You relinquish any right to principal from the trust, as well as the power to change or revoke the trust agreement. As a consequence, the asset is not considered part of your taxable estate. You may name the recipient of the income and principal. One popular use of an irrevocable living trust is to shelter a life insurance policy from estate taxes.

Minors' Trust (Custodianship): If you and your spouse both die, a minors' trust will hold your assets for your children until they reach an age at which you believe they will be competent to manage the assets.

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DISCLAIMER: Law Offices of Walter J. Zukowski & Associates does not take responsibility for how you use this document. By use of this document, you acknowledge that you have read the sub-page entitled, "Terms and Conditions", and agree to be bound by them. You are strongly advised to consult with your own attorney.