SUGGESTED LIVING TRUST QUESTIONS
By Atty. Michael H. Agranoff

1. If I have a living trust, do I still need a will? If not, what happens to any property that was not properly funded in the living trust at the time of my death?

2. Can I accomplish tax savings without a living trust? In other words, can I use a will for a marital credit trust, and use the gift tax exemption to reduce my taxable estate, and equalize my estate with various means not requiring a living trust?

3. If I own real estate, is it difficult to get a tax clearance statement from the Probate Court?

4. If a dispute arises among the beneficiaries of the living trust, what court adjudicates the dispute?

5. If I have a living trust, does that get me out of paying inheritance or estate tax, personal income tax, or estate income tax?

6. If I have personal debts, does a living trust eliminate those debts?

7. If I am killed by someone’s negligence, does my estate still have to file a wrongful death lawsuit in order to collect? Does a living trust eliminate that need?

8. What exactly does it mean to “fund” a living trust?

9. Do you do all of the funding of my living trust forever, for the original cost of my living trust? If not, what are the procedures for funding, and how much does it cost?

10. An article on page 28 of the November/December 2007 AARP Magazine, by Barbara M. Whelehan, states clearly that living trusts are appropriate in only a very limited number of situations. Which parts of that article, if any, do you disagree with, and why?

11. If you recommend a living trust for me, will you draw up a detailed contract, showing costs, what is covered, and what is not covered, and give me time to get a second opinion to review that contract? If not, why not?