A4
Wills, Trusts, and More
The Insider
My Mom Had a Trust...Why Probate? by Jeffery J. McKenna Your mom chose a revocable living trust instead of relying on a will or joint ownership in her estate plan. She liked the cost and time savings, plus the added control over assets that a living trust can provide. She wanted her family to avoid PROBATE. So, why is the family being told a probate is necessary? The simple answer— Mom never titled the assets into the trust or set up her accounts so that they would be paid on death to the trust. When properly prepared, and FUNDED a living trust avoids probate. Unfortunately, many people mistakenly think that if they have a “list of trust assets” attached to the trust that those assets will avoid the probate process upon death. This is wrong. The assets most be actually retitled into the name of the trust or made payable upon death to the trust in order to avoid probate. Trusts can be wonderful. They can let you provide for your spouse without disinheriting your children, which can be important in second marriages. Trusts can help save estate taxes. And they can protect inheritances for children and grandchildren from the courts, creditors, spouses, and irresponsible spending. However, many people make a major mistake in that they do not properly fund their trusts. Funding your trust is the process of transferring your assets from you to your trust. To do this, you physically change the titles of your assets from your individual name (or joint
names, if married) to the trustee of your trust. You also will change beneficiary (or contingent beneficiary) designations to your trustee. The trustee you name for your living trust controls the assets in your trust. Most likely, you have named yourself as trustee, so you will still have complete control. Remember, one of the great features of a revocable living trust is that you can continue to buy and sell assets just as you do now. You can also remove assets from your living trust should you ever decide to do so. If you have signed your living trust document but haven’t changed titles and beneficiary designations, your trust will likely not achieve the desired results. You may have a great trust, but until you fund it (transfer your assets to it), it doesn’t control anything. Your revocable trust can only control the assets you put into it. If the goal of your living trust is to avoid probate at death and court intervention at incapacity, then you must fund it now, while you are able to do so. You are the one ultimately responsible for making sure all of your appropriate assets are transferred to your trust. Most attorneys will transfer real estate into the trust, and will provide forms and instructions for your other assets. Often, your attorney will include sample letters or blank forms for you to use. The funding process is not difficult. Because revocable living trusts are now so widely used, you should meet with little or no resistance when transferring your assets into your trust. Even though the pro-
tHe lAuGhiNg pOiNt!! Children For Sale
NOW WITH A PANGUITCH AND RICHFIELD OFFICE TO SERVE CLIENTS IN AND AROUND GARFIELD AND SEVIER COUNTIES. Jeffery J. McKenna is a local attorney whose practice has been focused on Estate Planning for over 25 years. He is licensed and serves clients in Utah, Arizona and Nevada. He is a shareholder at the law firm of Barney, McKenna and Olmstead. If you have questions you would like addressed in these articles, please feel free to contact him at 435 628-1711 or jmckenna@barney-mckenna. com or visit the firm’s website at WWW.BARNEY-MCKENNA.COM, he would enjoy hearing from you. Additionally, you can RSVP to attend one of his FREE Estate Planning Seminars in Richfield, at 159 North Main Street, every Third Thursday. cess is not difficult, it can be easy to get sidetracked or procrastinate. To prevent this from happening, make funding your revocable living trust a priority or pay an attorney to assist with all aspects of the funding. Remind yourself why you are doing this, and look forward to the peace of mind you’ll have when the funding of your trust is complete.
August 10, 2023
After a rough day spent corralling my rowdy kids, I’d had enough. “I think I’m going to sell them,” I hissed to my sister. “You’re crazy,” she said. “For thinking of selling them?” “For thinking someone would buy them.”
Frozen Account
My cousin always “borrows” money from her older brother's piggy bank, which drives him crazy. One day, she found the piggy in, of all places, the freezer. Inside was this note: “Dear sister, I hope you'll understand, but my capital has been frozen.”
The Worst Part
My two daughters were discussing the less than desirable physical attributes they had inherited from their father. The older one: "I hate my freckles from Dad." Her unsympathetic younger sister: "At least you got his freckles. I got his eyebrow."
Shower Thoughts
Long ago everyone owned horses but you were rich if you owned a car, now everyone owns cars and you’re rich if you own a horse.
PUNishment
I can't take my dog to the pond anymore because the ducks keep attacking him. That's what I get for buying a pure bread dog.
sudoku To Play: Complete the grid so that every row, every column and every 3x3 box contains the digits 1 to 9
Feared Meeting
I was on my way out of the house to meet with a cantankerous client, and I was dreading it. The look on my face must have given me away because my fouryear-old daughter asked what was wrong. "I'm going to meet a woman who always yells at Daddy," I told her. "Oh," she said. "Say hi to Mom."
This week's answers on B4
THEME: International Greetings ACROSS 1. Russian czar's edict or proclamation 6. Common stomach disorder, acr. 9. Thai currency 13. Femme fatale 14. Cow greeting? 15. High-quality black tea 16. Heretofore (2 words) 17. Used for making holes 18. Old and feeble 19. *Precedes or follows alaikumin a greeting 21. *Robin Williams' "Good Morning, ____" 23. Family memb. 24. Blood fluids 25. R&R spot 28. Standout 30. All together (2 words) 35. Crafts' companion 37. Hyperbolic tangent 39. River in Paris 40. Traditions typically passed on by word of mouth 41. Home of Darfur 43. Opposite of base 44. Carthage's ancient neighbor 46. Have supper 47. Condoleezza of politics 48. Pleasantly warm 50. Type of mine passage 52. JFK's brother 53. Famous Allen Ginsberg poem 55. Band booking 57. *Hello in Normandy region 61. *Hello in Haifa 64. Letter-shaped girder 65. Female reproductive cells 67. Did like a lunatic 69. L in AWOL 70. Nada 71. Greet the day 72. "Musical" constellation 73. Precedes whiz 74. It typically has 4 doors
DOWN
1. Stars and Stripes country 2. *Unspoken greeting in France 3. Ned Stark's youngest daughter 4. Prevents one from seeing 5. Have as logical consequence 6. Mosque prayer leader 7. *Japanese greeting move 8. To crack, as in case 9. Out of shape 10. Kindred 11. *Hello in Spain or in Mexico 12. Overwhelm like bees 15. Hymns of praise 20. Borders on 22. Choler 24. Shadow-utilizing timepiece 25. *Hi, in France 26. Prefix with type 27. Places in the heart 29. Praise 31. Kind of hug
32. In accordance with law 33. In the cooler 34. Like surrendered land 36. 1/60th of min, pl. 38. *Shakeable appendage 42. Horse greeting? 45. Don't try this here? (2 words) 49. *Greetings to ____ 51. "Toddlers & ____," reality TV 54. Amiss 56. Sunlight's interference 57. Hillary's hubby 58. Do as directed 59. Getting warm 60. Cup of joe 61. White ____ in retail 62. "Metamorphoses" poet 63. ____ Verde National Park 66. Contend 68. Cub's home Solution on B4