When lawyers explain trusts, they say that the to use a living revocable trust, you will

trust should be “funded.” What they mean is, have to get over that hang-up. You can
the trust has to own your property. That means control the property, but you can’t
it has to own all of the property that would nor- technically own it. You will use the
mally require your signature to sell or transfer property just as you always did. You
while you are alive or after you have died. Just can buy, sell, rent, burn, build, and do
having Gramps write on a piece of paper, “I anything else you could when you
hereby fund my trust with $10 and other good owned the property, but technically it
and valuable consideration” isn’t going to help isn’t yours.
at all. If the trust is funded with a piece of real
estate, that means the trust owns the piece of real Some people, especially older people,
estate. How does the trust own the home, car, can’t live with the thought of losing
and bank account? ownership, even though it is explained
that they will still have control, and life
In the last decade or two, more people have will go on just as it always has. If the
started to actually use living revocable trusts. The public is be- emotional price is higher than the monetary savings using a
coming more familiar with the trust, and they know the trust living revocable trust might yield, then don’t establish a trust. I
has to be funded. Twenty years ago, a majority of the trusts that have talked several families out of establishing a trust for Mom
people showed me were “unfunded{.” Most of the people who and Dad, because Mom and Dad couldn’t be comfortable giving
had trusts didn’t have any idea that the trust had to be funded, up ownership of the property they had worked their whole
and the rest of them didn’t know how to fund the trust, even lives for. They felt as though they were losing all their security,
though they knew it was supposed to be funded. Their trusts and establishing the trust wasn’t worth stripping them of their
were, of course, almost useless, and they had wasted their hard- psychological security blanket.
earned money. A large part of this ebook comes from Chapter
12 in my book, Protecting Your Financial Future, which you can
get on Amazon. Chapter 12 is dedicated to showing you how
to fund your trust. In order to totally avoid probate, your trust
has to be fully funded. It has to own all of your property. A trust is not a company and should never be confused with a
company. However, the concept of a company can help you
understand the relationship between ownership and control.
Lots of people have a small company, and they buy their car or
The terminology “all your property” must be clarified. The trust computer in the name of the small company. The company then
has to own only the property that has an ownership document, owns the car and the computer. But the person who has the
i.e., property that requires your signature in order to be sold, small company drives the car and uses the computer as his per-
such as your house, car, stocks, bonds, etc. The toaster, micro- sonal car or computer. If they want to buy a new car, they have
wave, riding lawn mower, diamond ring, and clothes don’t the company sell the old car, and they have the company buy a
need to be owned by the trust. Ownership of these kinds of new car. They don’t own the car, but they control the car, as if it
property is evidenced by possession, not a piece of paper. were their own. The concept of ownership and control func-
tions about the same way for a trust.
I always tell my clients that they don’t have to worry about
making the trust own anything that their neighbor could physi-
cally sell at a garage sale when they were out of town. Your
neighbor couldn't sell your car at a garage sale unless he or she Many lawyers will fund your trust by using what is called a
had the title with your signature on the transfer line. “schedule.” You should not rely on a schedule to fund your
trust.

If your trust is using a schedule to fund itself, the text of your

Ownership is a major issue with Americans. It is a psychologi- trust will say that the trust owns everything “listed on the
cal hang-up we have. We have to own things. If you are going ‘Schedule A’ which is attached to the trust.” The schedule is just
Page 3

a list of property that goes along with your trust. The So, does the schedule work? Do you really avoid pro-
schedule is usually known as “Schedule A” because it is bate? In theory, yes. In reality, no. It is a setup and a
the first schedule talked about in the trust. Of course, trap. The trap closes in a scenario something like the
the schedule could be known as Schedule A, Schedule following:
B, Schedule Green Shoes, or by any other name. Not all
trusts call the property list a schedule. The property list Dad’s bank account is carefully listed on his trust’s
is sometimes referred to by a term such as “Exhibit,” property schedule, and if he is like most people, he will
“Appendix,” “Addendum,” or some other term. It never tell the bank about the trust. What happens when
doesn’t matter what your trust calls the property list. Dad dies? After his death, the successor trustee, you, his
oldest daughter, go into the bank and say, “Hi, Dad
In some cases, the schedule is securely and irremovably died last night, and I need to get into the checking ac-
attached at the back of your trust using staples or some count.” The banker looks up the signature card. The
other binding technique. However, often the schedule is signature card shows that the account is in the name of
just placed in the ringed binder or folder with the trust Mom and Dad as joint tenants with rights of survivor-
papers and wills. Unless it is securely, physically at- ship. The banker is an old friend of Dad’s, and he
tached to the trust papers, the schedule should clearly knows Mom died last year and Dad died yesterday. He
state that it is part of your trust. It should refer to your tells you that he is sorry, but he will have to have a pro-
trust by the trust’s name, including the date. Text Box bate order, a letters testamentary, before he can let you
12.1 is a short example of a schedule that would accom- get into the bank account or safe deposit box.
pany John and Mary Doe’s trust.
The schedule should simply be a When the banker says “probate
listing of property, including your order,” you retort that Dad had a
cars, boats, bank accounts, certifi- living revocable trust, and there
cates of deposit, stock certificates, shouldn’t be any probate. This is
and almost everything else you news to the banker. To prove
own. Note that the house and other your point, you whip out a copy
real estate are transferred by deeds, of the trust for the banker, and
not by the schedule. There is usual- say, “Look, the bank account is
ly a place for your signature at the listed right there on Schedule A.”
end of the property list. Sometimes After a quick consultation with
there is also a notary public attesta- the branch manager and a rush
tion following your signature. Not all unattached call to the bank’s half-baked attorney in the home office,
schedules are signed and notarized, but it is a good idea the banker says how sorry he is, but that the attorney
to have them as official and clear as possible. said that you still need a probate order.

In theory, the trust actually does own everything listed The banker was Dad’s friend. He really does want to
on the property schedule. You signed the trust, which believe you, but maybe the trust isn’t real. Maybe some-
states that you are transferring ownership of all of the one forged Dad’s signature. Maybe Dad revoked his
property listed on the schedule. By signing the trust, trust and decided trusts were garbage. Maybe Dad left a
ownership of the property listed on the schedule is be- will that he established only three weeks ago. The
ing transferred from you as a joint tenant, tenant in bank’s attorney is very good at playing the “maybe
common, or sole owner to the trust. If you want to get game.”
technical, the trust owns the property, but the property
The maybe game is going to wear out your patience
is actually transferred to the trustee, as custodian
very quickly. In frustration, you finally scream, “OK. I
(fiduciary) acting on behalf of the trust. The trust docu-
am calling my lawyer.” The trap closes!
ment itself may act as the transfer document. Either the
trust will have language of conveyance in it, or the Your call to the lawyer that drafted Dad’s trust confirms
schedule will have language of conveyance. your suspicions that the bank’s lawyer is a turkey. Your
lawyer points to the checking account listed on the
property schedules and assures you that everything
will be worked out when he calls the bank’s lawyer.
In many cases, the lawyer carefully makes out the list,
After running his clock for 2 hours at $465/hour, your
has you sign, pats you on the head, and says, “Run
lawyer calls you up and reconfirms your suspicion that
along. You don’t have anything to worry about because the bank’s lawyer is a turkey. In fact, your lawyer is so
all of your property is listed on the schedule, and that livid that he informs you he has already started to file
means it is protected by the trust.” This is exactly what the papers needed to sue the bank. But, there is no need
happened to my father-in-law.
to be concerned, because there is absolutely no ques-
Page 4

The below listed property is hereby transferred, conveyed, assigned and delivered to John H. Doe and Mary A. Doe as
Trustees, and their successor Trustees, subject to the terms and conditions of the John and Mary Doe Living Revocable Trust
dated the 4th of July, 2012, and signed by the Undersigned:

1. The following accounts in the following institutions together with all future additions, interest or accumulations
therein and also including all new accounts and the accumulations and the future additions of interest or the accumulation in
any and all other financial institutions in which new accounts are opened in the future:
Invest Your Money Here Bank of Nevada
1001 Main Street
Carson City, NV 89701
Safe Deposit Box #222
Checking Account #99-754-333-1
Savings Accounts #22-4456-7-88
2. The following owned vehicles:
1959 Chevrolet Corvette
VIN #EL024246VI81S12
3. The following securities, stocks, and other investments:
IBM Stock Certificate #694231026
Ford Stock Certificate #12431C

DATED the 4th day of July, 2012.

________________________________________
John H. Doe

________________________________________
Mary A. Doe

State of Nevada )
: ss
County of Washoe )

BEFORE ME, the undersigned, a Notary Public in and for said County and State, personally appeared John H. Doe and
Mary A. Doe, personally known to me or proved to me on the basis of satisfactory evidence to be the persons whose names
are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities,
and that, by their signature on the instrument, the persons executed the instrument.

SUBSCRIBED AND SWORN TO before me the 4th day of July, 2012.

WITNESS my hand and official seal.

____________________________________
Notary Public in and for said County and State

Text Box 12.1—Schedule A Accompanying John and Mary Doe Trust

tion—the checking account is listed on the property the attorney that clearly stated it was Dad’s responsibil-
schedule, and you will win the suit against the bank. ity to contact the bank, file the deed (which is now no-
where to be found), and do all of the other things re-
Needless to say, you are now livid. You are breathing quired, in addition to simply listing the property on
lawsuit with every breath. Can you sue the attorney Schedule A, to effectively transfer property to the trust
who drafted the trust? No, probably not. The attorney and avoid probate. So, as far as the attorney is con-
prepared a schedule for Dad and pushed him out the cerned, this mess with the bank is all Dad’s fault. In
door assuring him everything was fine. However, on fact, just to cover his tail, the attorney had Dad sign a
Dad’s way out the door, the attorney handed Dad a paper saying he received the trust and all the associated
copy of all of his paperwork. The lawyer never told Dad instructions. So when you threaten to sue the attorney,
he needed to do a lot of homework. Dad was supposed he says he has evidence it was Dad’s fault.
to read the papers and follow the instructions. The first
four pages of the paperwork were a cover letter from
Page 5

Before the banker will help you, you are going to have trust when you show up with it after Dad has died.
to prove to the bank that this was Dad’s real trust, that Trusts are private, not secret. The banker has a copy he
it hadn’t been revoked, and so on. When your lawyer got from Dad, so he knows that the trust was what Dad
said you will win the lawsuit with the bank, he was wanted.
right. After all the legal hairs are split, the court will
determine that the trust is for real and will tell the bank When the bank knows about the trust, things will go
that Dad’s trust really does own the checking account. smoothly after Dad dies. You will show up at the bank
Isn’t that nice? To get into Dad’s bank account, you did- with the trust document and Dad’s death certificate.
n’t need a probate order, all you had to do was sue the The banker will examine the trust to make sure it is the
bank. When your lawyer says he is suing the bank, if one Dad had when he came in to change the account to
you are smart, you will immediately back out of the a trust account. Sure enough, everything matches up, so
lawsuit and hire a different attorney to probate Dad’s the bank is secure in transferring power to you as the
estate. named successor trustee. The banker simply says, “Sign
here,” and you are home free.
It will probably be faster, easier and cheaper to go
through probate instead of suing the bank. Besides, Just listing the property on a schedule attached to the
why go to the trouble of suing the bank, when you will trust may be technically sufficient to fund the trust. But
have to go through probate anyway because you can’t in order to make the trust work smoothly and provide
find the deed transferring Dad’s house into the trust. the benefits it promises, the property all has to be
Dad never recorded the deed. You either have to find owned by the trust and actually titled in the name of
the deed or probate the property. Because you don’t the trust. I don’t know how many times I have already
have the deed and there is no record of the deed, you written that in this book, but it can’t be overstated.
will have to get a probate order to sell the house. All of
The situation may arise where you have to deal with a
the existing records show the house is jointly owned by
trust that has only been funded by a schedule. The
Mom and Dad. Because Mom’s name is still on the
schedule may even list the real property. All may not be
deed, you will be lucky if you don’t have to probate
lost. To complete the transfer of the property into the
Mom’s estate too or bring a quiet title action to get
trust, the schedule and the trust will probably have to
Mom’s name off the deed.
be recorded. Exactly where you record them depends
What went wrong? The problem has nothing to do with upon state laws. Recording the trust blows its privacy
the trust itself. Dad just didn’t do his homework. He aspects, but the trust can still save you from a messy
was never told that only listing the property on the probate proceeding in many cases. Maybe recording
schedule could cause problems. Dad never really un- everything will help, and maybe it won’t.
derstood what had to be done, because the lawyer ush-
ered him out of the office before he could even ask a
question. Dad should have recorded the deed or put it
Here are a few hints on procedures required to place
in a safe place where you could find it. Obviously, just
property in the name of your trust.
listing the bank account on Schedule A wasn’t enough.
Dad needed to do something else at the bank. Dad had One of the major objections lawyers have with living
to go into the bank after he got his trust and change the revocable trusts is the complexity, time, and expense of
signature card from his name to the trust’s name. moving property into the trust’s ownership. Even if you
have a trust, there will be recording fees (on the order of
When Dad changes the signature card, the banker will
$20 - $50) that will be charged to record a deed showing
often want a copy of part of the trust, or he will want a
that property is being transferred into the trust. This is
summary of the trust, i.e., Certification of Trust. In rare
the same recording fee that will
cases, the banker will want to
be required when a deed is rec-
keep a full copy of the trust. Let
orded following a probate pro-
the banker have whatever he
ceeding. Yes, when the trust is
wants. It will be kept relatively
used the filing fee has to be paid
private in your bank file.
now rather than 25 years down
When the banker changes the the road—there is a time value to
name on the signature card and money. But that fee is nothing
the safe deposit box, he is agree- compared to the attorney’s fees in
ing to honor the terms of the probate.
trust. He will copy part of the
I have never had a client come
trust so that he can identify the
back to me and say the complexi-
Page 6

ty of dealing with the trust was too much to handle. Living Revocable Trust.” The second part is the date
Once you learn how to buy and sell property, open you created the trust, i.e., “dated July 4, 2012.” The third
bank accounts and brokerage accounts, and generally part is your name followed by the word “Trustee,” i.e.,
how to act as a trustee, dealing with trust property is “John Doe, Trustee.” Yes, you do have to have all three
almost exactly like dealing with your own property. parts of the name. People really mess up titles to prop-
erty, bank accounts, and everything else when they
There is one key concept you must master in order to don’t use the date and trustee’s name as part of the
really use your trust to own, buy, sell, and generally trust’s name.
deal with assets. You have a first and a last name. Your
trust has three parts to its name – Name of trust, Date of I have had to clean up many deeds where the attorney
trust, Name of trustee. All three elements of the name or the folks themselves have made out a deed and left
must be there in order to have the trust hold “good ti- off the date of the trust. The title isn’t any good unless it
tle” to the asset. To drive this point home, which has to has the name of the trust, the date of the trust, and the
be made over and over again, I am including part of name of the trustee. You have to use the full name of
Chapter 10 in my book Protecting Your Financial Future. the trust—name, date, and trustee. If you only had one
Once you understand the naming concept, I will get name for yourself, you would always be messed up
back to transferring assets into the trust. The naming also.
part reads as follows:
I have a friend named “Susie.” She went to court and
had her birth name taken off her records, and she
changed her name to “Susie.” No, there aren’t two
names, only one. It is very awkward every time she
Assume you and your spouse are named John and introduces herself, because everyone waits for the sec-
Mary Doe. After you have created your trust, you must ond name. Only having one name has actually caused
make sure that the trust owns your property. Note that her a lot of problems. One day she had been to the
the trust is created by simply writing down the instruc- beach and did not have her purse or driver’s license
tions you want to give the trustee concerning the prop- because she had intentionally left them home so that
erty that will be held by the trust. Making the trust own they wouldn’t get stolen. She was stopped by the police
property is easy. for a minor traffic violation. The conversation went
something like this:
If you want to own a bank account yourself, then you
will go to the bank and open up a bank account in your Police: May I see your driver’s license?
name, i.e., “John Doe” or “Mary Doe.” If you want to Susie: I am sorry sir, I left it home.
have the bank account owned by yourself and your Police: What is your name?
spouse, you will open up the bank account in the name Susie: Susie.
of “John Doe and/or Mary Doe.” If you want your trust Police: What is your full name?
to own the bank account, you will open up the bank Susie: Susie.
account in the name of your trust. Police: Don’t be cute lady. What is your last name?
Susie: Susie. I don’t have two names.
What do you name your trust? Name your trust as you Police: Sure, lady. I’m calling for a backup.
would your child, i.e., anything you want. However,
most people would not name their trust “Jim Doe.” The By the time all was said and done, Susie was hauled off
normal name for the trust would be the “John and Mary in handcuffs, and she literally spent the night in jail.
Doe Living Revocable Trust, dated July 4, 2012.” You Even though she can’t buy airline tickets, get credit
could name the trust the “Upstitch Trust, dated July 4, cards, and do other simple things, she still only has one
2012,” or anything else. In today’s society with identity name.
theft running rampant, it is probably a good idea to
name your trust by a name that doesn’t reveal the peo- Your trust is going to have three parts to its name.
ple behind the trust. If you like the beach, the trust Right? It is named the “(something) Trust, dated (some
could be named the “Sandy Beach Living Revocable date), (some name), Trustee.” You can create more than
Trust, dated July 4, 2012.” It just makes it a little harder one trust, just like you can have more than one child.
for the identity thief to get the whole picture of your Each child will receive a different first name and the
wealth. same last name, because that is just the way our society
does the naming thing. Each trust you create will have a
Note that your trust has three parts to its name. The different name. The first name, the “John and Mary Doe
first part is the part you make up, i.e., the “John and Living Revocable Trust,” could be the same or different
Mary Doe Living Revocable Trust” or the “Sandy Beach for each trust, but the second name, i.e., the date, will
Page 7

always be different. Your Financial Future.

So, when you want the bank account to be owned by Checking Accounts
the trust, you use the trust’s name. Let’s assume you
will be the trustee (controller) for your own trust. The The bank should not change your account number,
signature card at the bank will read something like this: make you print new checks, or charge you anything to
the “John and Mary Doe Living Revocable Trust, dated change the signature card. Some banks are stubborn,
July 4, 2012, John Doe and Mary Doe, Trustees." You and they require you to open a new account with a new
must always identify the trustee by name, because it is number and new checks, but there isn’t any law requir-
actually the trustee who holds title to the property. I ing them to do that. Your checks do not need to have
will go into detail later about how to move each type of the name of the trust on them. Anything can be printed
property into the trust. on the check. It’s the signature card that controls what
happens. When the bank asks for a tax ID number for
I have been very specific as to how you should name the trust account, it should be your Social Security num-
your trust. Let me backpedal and say that there are nu- ber. A revocable trust usually doesn’t get a Social Secu-
merous ways to name your trust. You shouldn’t get rity number.
nervous if the bank, brokerage
house, or insurance company has a Safe Deposit Box
required way they want to see your Make sure the signature card for the
trust named. In fact, the way you safe deposit box is changed to the
name your trust, or at least the way name of the trust. The safe deposit box
you write it down, varies from state should be easy to change.
to state. For example, Wyoming
requires the beneficiaries to be Savings Accounts
named as part of the trust’s name.
Ask your local title insurance com- Don’t forget to change each savings
pany or escrow company how they account, even the one your grandpa
want to see your trust’s name ap- opened for you when you were five
pear on a deed. Ask your stock- years old.
broker how the brokerage company wants to see the
Certificates of Deposit
name on their forms. After a while you will get a feel
for the way your trust’s name needs to be written In order to change the name on a Certificate of Deposit
down. (CD), a new CD must be issued. If you cash in the CD
early, you will have a penalty and lose money. I counsel
In most cases, the critical part is the date and the identi-
clients to wait to change their CDs that are short term or
fication of the trustee. So, the trust’s name on your stock
that are coming due within a few months after the trust
account could read:
is established. Wait until the CD comes up for renewal,
John and Mary Doe Living Revocable Trust then have the next CD issued in the name of the trust.
Under Agreement July 4, 2012 Unless there is some reason to think you will not live to
John Doe and Mary Doe, Trustees see the CD mature, it is probably worth the bet to wait
For the Benefit of the Doe Family for the CD to mature before changing it to show that
Lots of times the trust name is abbreviated so that it will your trust owns it. But remember, it is a bet. If you die
fit into the space allocated on the deed or form. Abbre- before the name on the CD is changed, the CD will have
viations often used in reference to trusts are: to be probated. Watch to make sure the bank doesn’t
automatically roll your old CD into a new one before
U/A = Under Agreement you get a chance to change the name on the new CD.
U/D = Under Date
U/D/T = Under Declaration of Trust Stocks
F/B/O = For the Benefit Of
Tr = Trust Your stockbroker will have to change the name on any
Ttee = Trustee stock certificates you hold. When a name is changed,
For example: John & Mary Doe Tr U/A 7/4/12 John & there is often a transfer fee charged by the company
Mary Doe, Ttee FBO Doe Family which manages the stock for the corporation that issues
the stock. The transfer fees often cannot be avoided if a
Enough on naming your trust, but don’t forget it. Now new certificate is issued in your trust’s name. That is
back to how do you transfer specific assets into your unfortunate, but changing the certificate now is much
trust. This mostly comes from Chapter 12 in Protecting cheaper than the probate fees will be if the certificate
Page 8

has to be probated. You might note that the same All the lady owned was about $100,000 in treasury
charge will be exacted from your estate to issue a new bonds. She and her husband had spent their lives sav-
certificate after you die, but that is on top of the probate ing these bonds. The banker and lawyer figured that the
fees. only way you could get the trust to own the bonds was
to have her sell the bonds and then reinvest all of the
One trick which may save some costs is to open a bro- money in new bonds that would be purchased in the
kerage account in your trust’s name and then deposit name of the trust.
the certificate into the account. The broker holds the
account. Stock certificates are usually not issued to the The banker and lawyer had set her up for a disaster.
brokerage account. Therefore, transfer fees are reduced When she sold the bonds, it triggered the income tax on
or are totally eliminated. all fifty years worth of earnings from the bonds. There
isn’t any tax until you sell; then the tax hits. She paid
If you already have a brokerage account at a brokerage $32,000 in income tax that year, and there wasn’t a thing
house, the account will have to be changed to reflect the I could do about it.
trust’s ownership. Your broker will help you change the
name on the account. As I have said before, the SEC All the banker and lawyer had to do to change the
(Securities and Exchange Commission) requires the name on the bonds was use Form PD F1851, “Request
broker to keep a copy of your trust or a detailed sum- for Reissue United States Savings Bonds to a Personal
mary of the trust, i.e., a “trust certificate” or Trust.” The Federal Reserve bank uses the form to
“certification of trust.” change the name on the bonds without triggering any
income tax problems. Your banker can help you get the
S corporation stock is a special type of stock used by Federal Reserve change papers, or you can get them
small corporations. If you bought your stock through a online.
stockbroker, it won’t be S corporation stock. However,
if you own stock in an S Corporation or an LLC taxed Whenever you are changing the title on an asset, you
under Subchapter S, a big red caution flag needs to go must be concerned about the tax consequences. The
up right here. Transfer of S corporation stock or LLC good news is, almost all assets can be transferred to the
membership interests, where the LLC is taxed under living revocable trust without any adverse tax effects.
Subchapter S, into the living trust may jeopardize the
entity’s “S” election with the IRS after the trust becomes Cars
irrevocable at your death. The living revocable trust can
Cars, trucks, and other motor vehicles have a title that
hold the S corporation stock for a maximum of two
will require your signature if they are sold or otherwise
years after your death. Almost every estate will distrib- transferred. They should be transferred to your trust’s
ute the stock within the two-year period. But, if you ownership. The rub comes with the Department of Mo-
have your wealth in a company that is taxed under Sub- tor Vehicles. Some states require a sales tax or transfer
chapter S of the IRS Code, you
tax every time the title on a car
need to consider the S corpo-
or truck is changed. If your state
ration problem of distributing doesn’t understand what a liv-
stock from a living revocable ing revocable trust is and let you
trust. Use a Subchapter S move the title to your car with-
qualified trust. Most of the
out charging a tax, then don’t
trusts I create and the trusts I
transfer the car to your trust.
supply to “do-it-yourself” Check with your state Depart-
people are Subchapter S qual- ment of Motor Vehicles and ask
ified trusts. When you use a how they recommend moving
qualified trust, then there’s no
title of your car into the name of
problem if the trust owns
your trust.
Subchapter S stock.
For small probate estates, the laws in most states leave a
Treasury Bonds/Notes
loophole or two open so that a car can be transferred
One year, an elderly lady and her daughter came to me without a probate proceeding. In such transfers, filing a
on April 1st with a $32,000 problem. The local banker simple affidavit will allow the car title to be moved after
and attorney had helped the lady put a simple living the owner dies.
revocable trust into place. It was a simple trust, and the
Your next car will obviously be purchased in your
banker and lawyer had been smart enough to know that
trust’s name. The trust’s name will actually be the
the trust had to be funded.
named owner on the car’s title.
Page 9

The last time I bought a car, the dealer asked if I wanted Houses
title in my name alone or as a joint tenant with my wife.
I said neither. He responded, “You want your wife to Real estate is transferred using a deed. Usually a quit-
own the car?” “Nope,” I said. “I want it in the name of claim deed or transfer deed is used to transfer title from
my trust, which is a division of our joint trust.” When I you to your trust. The quitclaim deed is sufficient, be-
rattled off a name that had 29 words in it, the dealer cause it transfers all rights that you have in the proper-
said I must be joking. I assured him ty. Warranty deeds are often
that I was serious. He promptly told used to transfer title when you
me to drop dead and explained that are buying a house. The seller is
the box on the title form was only giving you a warranty or guar-
large enough to have 4 or 5 words. I antee that the title to the house
said that I understood, but I ex- can be transferred. When you
plained that I wasn’t going to buy a use a quitclaim deed, you aren’t
car unless it could be purchased in guaranteeing that the title will
the name of the trust. Funny thing, be good, but if you can’t trust
the dealer and the salesman figured yourself not to cheat yourself,
out how to put all 29 words on the well, whom can you trust?
title. They did abbreviate some words. For example, Tr
A quitclaim deed example is shown in Text Box 12.2.
= trust, and U/A = under agreement. The title read
something like this: “John Doe Trust, a separate divi- Warranty deeds” or “grant deeds” are considered
sion of the John and Mary Doe Trust under agreement cleaner by many lawyers, escrow companies, and title
July 4, 2012, as amended November 6, 2014, John and insurance companies. The warranty deeds make war-
Mary Doe, Trustees.” ranties that the quitclaim deeds don’t make, and it may

Mail to:
John H. Doe
598 Doezer Street
Sparks, NV 89431

For the sum of Ten ($10.00) Dollars and other good and valuable consideration, John H. Doe and Mary A. Doe, Gran-
tors of Sparks, County of Washoe, State of Nevada, hereby Quitclaim to John H. Doe and Mary A. Doe as Trustees of the
John and Mary Doe Living Revocable Trust, under agreement dated the 4th day of July, 2012, and the survivor thereof and
successors thereto, with full power and authority to assign, sell, transfer, convey, encumber and mortgage the following
described tract of land located in Washoe County, State of Nevada.
Commencing at the Southeast Corner of Lot 2, Block 7, Plat “A,” Sparks City Survey; and running thence North 8
rods; thence West 3 rods; thence South 8 rods; thence East 3 rods to beginning.
DATED the 4th day of July, 2012.

_________________________________
John H. Doe

_________________________________
Mary A. Doe
State of Nevada )
: ss
County of Washoe )
BEFORE ME, the undersigned, a Notary Public in and for said County and State, personally appeared John H. Doe
and Mary A. Doe, personally known to me or proved to me on the basis of satisfactory evidence to be the persons whose
names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized ca-
pacities, and that, by their signature on the instrument, the persons executed the instrument.
SUBSCRIBED AND SWORN TO before me the 4th day of July, 2012.
WITNESS my hand and official seal.

_______________________________
Notary Public in and for said County and State

Text Box 12.2—Quitclaim Deed

Page 10

be a good idea to keep the warranties running along the form, which specifically claims an exemption. The extra
chain of title to the property. Call your local title insur- sheet must claim a spouse to spouse, parent to child, or
ance company and ask if a quitclaim deed is sufficient child to parent transfer.
or if they would rather see a warranty deed. While you
have them on the phone, ask the title company employ- Wherever you live, you should check with your state or
ees how they want to see the name of your trust put on county property tax officers and find out the exact pro-
a deed in your state. cedure you will need to follow in order to avoid the
property tax reevaluation trap, if it even applies in your
Do you record the deed? The answer is usually yes. By state, and protect your homestead rights.
federal law, your living revocable trust is an extension
of you, and any transfer from you to your trust isn’t the The transfer of a piece of real estate to a living revocable
type of transfer which triggers a property tax reassess- trust does not affect the mortgage on the property.
ment. However, in some states you have to file some- Many loan agreements have “due-on-sale” clauses,
thing with the state giving them notice that you have which adversely affect the mortgage if the property is
transferred the property to your trust. If you don’t give sold or transferred. Most lenders recognize that a trans-
the state notice, they will automatically reassess the fer to a living revocable trust doesn’t affect their securi-
property value, up your taxes, and get money any way ty in the loan, and they pretty much ignore your trans-
they can. fer of the real estate to your living revocable trust. If
some lender gets real nasty with you about the transfer
A local attorney, the people who work in title compa- of your home to your living revocable trust, then whip
nies, or the people who record deeds (the county re- out federal law 12 CFR 591.5 and point out that federal
corder’s office) can probably help you find out what law bars the lender from accelerating the mortgage on
happens in your state. In fact, the county recorder’s your personal residence because you transferred it to
office can be a big help in making out new deeds. Call your living revocable trust. If the property is something
and ask the recorder how they want the trust’s name on other than your personal residence, then you had better
the deed and what tax consequences filing a new deed walk softly, and don’t make waves. Only the transfer of
will have. If you don’t get the new employee in the of- your personal residence is protected by federal laws so
fice, you can get a lot of tips from the recorder’s office. that the lender cannot accelerate the mortgage. Howev-
Hopefully, you will get the same information from the er, most lenders will grant permission to transfer any
recorder’s office and the title company. If for some rea- piece of real estate to a living revocable trust without
son you don’t want to record the deed, you simply affecting the mortgage. If there is a problem, make out a
make out the deed, deliver it, and don’t record it. deed to the trust without telling the lender, and don’t
record the deed. Make sure you deliver the deed to the
Unless state law dictates otherwise, recording doesn’t trustee (yourself), keep it nice and safe, and tell your
make the transfer any more valid or legal. However, if successor trustees about the deed. Technically, a living
the deed isn’t recorded and it is later lost, then you are revocable trust is an exception to the Garn-St. Germain
back to a probate proceeding. Recording a deed puts Act (due on sale law), so you should be fine.
the transfer on public record, overcomes any arguments
that there wasn’t an adequate transfer of the deed, and HUD (Housing and Urban Development) loans are not
protects you if the deed is later lost. available on property purchased in the name of a living
revocable trust. If you want a HUD, FANNIE MAE, or
Some states, such as California, have very specific pro- FREDDY MAC loan, purchase the real estate in your
cedures that must be followed in order to transfer real name and/or your spouse’s name, just as you normally
estate into a living revocable trust and avoid a property would. Then later, have a quitclaim deed made out to
tax reevaluation. First, the deed must be prepared. You move the property into your trust. You will not record
can use either a quitclaim deed or a warranty deed the quitclaim deed. Put it in a safe place and let your
(grant deed). There is no such thing as a “change deed” successor trustees know where it is so that they can
or “transfer deed.” Second, a form called a “preliminary retrieve the deed after your death and avoid probating
change in ownership form” must be filed with the coun- the property.
ty where the property is located. You can get a copy of
the form from the County Recorder’s Office.

If you are transferring the property to your living revo- The same considerations that apply to your home apply
cable trust, all you need is the deed and preliminary to your investment real estate. If you are willing to hold
change in ownership form. Transferring property to a the property in your own name, there usually isn't any
family member requires a third step to be exempt from reason that the property shouldn't be moved to the
the property tax reevaluation. An additional page must ownership of your living revocable trust.
be filed with the preliminary change in ownership
Page 11

Many real estate investors move their real estate hold- have the most effective homestead laws.
ings into limited liability companies. That’s ok for in-
vestment properties, but your personal residence When your house is transferred to ownership of the
shouldn’t be put into a company. If you do that, it’s not trust, technically it is not yours anymore. The trust
your personal residence anymore. You will simply be owns it. Because homestead laws only protect “your”
living in a house that a company owns. You’ll lose the house, in most states they will not protect a house
tax advantages that go along with owning a personal owned by the trust.
residence. Note that if you put your personal residence
The law isn’t consistent. Because you don’t “own” the
into a living revocable trust, the property is still your
house, the law won’t let you use the homestead laws to
personal residence.
protect the house. Yet, the law says that you can lose the
We’ll talk a lot more about limited liability companies house in a lawsuit or bankruptcy, even if it is owned by
in a later chapter [in my book Protecting Your Financial the trust, because technically you still own the house
Future]. They are good asset protection tools, but there under the lawsuit and bankruptcy laws. It doesn’t mat-
are always tax considerations to using them in addition ter if the trust owns the house; the trust can’t protect it
to the asset protection aspects they offer. from your personal legal problems under most laws.
Aren't you learning to love the law?
Real estate investors often have to leverage their invest-
ments. One investment will be “pledged” or put up as Don’t concern yourself too much with the homestead
collateral in order to induce the bank to make an addi- laws. In fact, in most states you can pretty much ignore
tional loan on another piece of property. You often also the homestead laws because they don’t protect enough
pledge assets. For example, you may have to use your to worry about. Most states protect only minimal
home as security to get a loan for a new car. If your amounts—amounts in the range of $6,000, $10,000 or
trust owns your house, how do you use the house as $15,000. The rarely used homestead laws simply do not
security for another loan? offer enough protection to influence most people’s es-
tate planning and the decision to put a house into a
HUD, FANNIE MAE, FREDDY MAC, and some lend- living revocable trust.
ers will not lend against property owned by a living
revocable trust. That is just their policy, and in my opin- However, Florida and Texas have traditionally protect-
ion, it is a bad policy. Unfortunately, the government ed 100% of the personal residence, and if you are living
and banks don’t pay a lot of attention to me, so my in one of those states and are planning on lawsuits and
opinion isn’t worth much. bankruptcy, the homestead rights should be preserved.
Your living revocable trust will have to have provisions
In the “powers of trustees” section in your living revo- in it to “preserve” the homestead. So, seek a little extra
cable trust, the trust should give the trustee, you, au- help from an attorney or title company to make sure the
thority to pledge the trust property. The trust can put homestead laws are satisfied. You will also have to
up the trust property as security for your loan, just as make sure that the state has preserved the homestead
your father could put up his house as security for your even though the property is in your trust. Wherever
loan. Many lenders know what a living revocable trust you are, it is a good idea to check with your local attor-
is and will accept the trust’s property as security in ex- ney to see what, if any, homestead rights your state
actly the same way they would accept property owned laws afford you and what effect putting your house in a
directly by you. Other lenders aren’t as congenial, and living revocable trust has on those rights.
for no legal or justifiable reason, they will make you
transfer the property out of the trust before they will Also, check the rules that must be followed in order to
accept it as security. Just take the property out of your claim protection under the homestead laws. The home-
trust and put it in your name. After the mortgage is in stead protection may not be available to you when you
place, put the property back into your trust. need it if you don’t take the necessary steps to qualify
you for the protection.

The bottom line is the states will let you preserve your
When your personal residence is placed into a trust, it homestead protection, but in many states you will have
usually loses its “homestead” protection. Many states to do something to keep the homestead protection in
have laws called “homestead laws” which will protect place. Unless you live in Florida or Texas, you probably
your house and some minimal amount of personal don’t need to worry much about homestead laws. You
property, such as clothing. The laws are designed to shouldn’t give up the probate protection and privacy of
prevent people from taking your last dime through a a living revocable trust to avoid the minor hassles that
lawsuit or bankruptcy procedure. Florida and Texas are required to preserve the homestead rights. Your
chance of cashing in on the probate savings is 100%,
Page 12

while your chance of ever using the homestead protec-

have to take the money out of the IRA within ten years.
tion is very small. Not many people claim homestead
Before the new law, it was possible for you to leave the
protection outside of Nevada, Florida and Texas, but
IRA to your spouse and then children, and then the
there are lots of people who have died and used a living
child could leave the IRA money in the IRA and let it
revocable trust to avoid an expensive probate mess.
keep growing tax free or tax deferred for the rest of
their life. That was a huge advantage that is now gone.

It is almost always a good idea to list your trust as the

(I give lots of “legal” tips throughout my book, secondary beneficiary of your life insurance policies.
Protecting Your Financial Future.) Make sure that you actually make the changes with the
insurance company and the entity that holds your re-
When you apply for a loan for any reason, never tirement plan and the IRA funds, if you need to change
pledge more property than is absolutely necessary your beneficiary designations. Also, check with your
to secure the loan. The property listed as security fire and casualty insurance company to see how you
can readily be taken by the lender if you default on can use your trust to avoid probate if your insurance
the loan. Of course, you never think that you will policy has to make payments on any claims after your
default on the loan, but it does happen. death. You may have to fill out a change of beneficiary
form for each company or have your trust put on your
When you apply for a loan, find out what the bank- casualty policy as an additional insured, but this is an-
er will require as the minimum amount of security other case where it is worth the effort to cross the “t’s”
necessary for you to be approved for the loan. and dot the “i’s.”
To persuade the banker to tell you the minimum Your life insurance face values are included in your
amount of security you need to pledge, you may assets as part of your total estate. If you have a taxable
need to make the banker think you will have a hard estate, you should be using an irrevocable insurance
time coming up with enough property. However trust to hold your life insurance. This is a special type of
you do it, you need to determine the minimum trust used to avoid all estate taxes on life insurance. Life
amount of property necessary to secure the loan. insurance trusts are very different from living revocable
When you find out what the minimum is, don’t list trusts, but they work great. You can totally avoid estate
any assets other than those necessary to meet the taxes on any amount of life insurance. That’s not a good
minimum-security amounts. Don’t brag to the deal, that’s a great deal!
banker about your wealth. If you say you have $6
million in property, the banker isn’t dumb. He will
want all $6 million as security. Flashing around big
asset sheets is stupid. Keep your wealth private. It By now you have a totally negative impression of trust
could save you a lot of grief someday. schedules. Wrong! It’s my fault. I’m sorry. I have only
tried to impress upon you that the property requiring
your signature to transfer or sell must be placed in your
trust’s name while you are alive. Otherwise, there may
be a problem after your death.
For tax reasons, your spouse, if you are married, should
usually be listed as the primary beneficiary on your I recommend that every client have a schedule, attached
retirement plans, IRAs and life insurance. This is partic- to the trust, which disposes of the little personal items.
Do you remember the personal letter associated with
ularly important on retirement plans and IRAs. The
the will? (That was talked about in a previous chapter
trust will substantially impact the way the IRS taxes the
of the Protecting Your Financial Future book.) It prevent-
benefits, if the trust is the primary beneficiary. Naming
the trust as the secondary beneficiary is commonly ed the family fights over the dollies and doilies. Many
done, and the consequences are just not as dire as nam- states do not allow your will to incorporate a personal
letter into your estate plan. But, the ability to change
ing the trust the primary beneficiary. If your retirement
your mind and not have to rewrite your will is im-
plan and the IRA are small, your living trust would
portant.
probably be a good choice as the secondary beneficiary.
If you have a lot of money in the retirement plan or You need to know whether or not your state’s law al-
IRA, you need the advice of someone who knows a lot lows you to write a personal letter after your will is
about the tax laws as they will be applied to your par- written. Call the probate clerk at the court, or call your
ticular situation. The laws recently changed under the local lawyer.
SECURES Act. Except for some exceptions, the trust
and people who are beneficiaries of your IRA money
Page 13

The use of a second will, a holographic will, in addition The property schedule, or any other schedule used with
to your formal will, has already been discussed in de- a trust, has a minor legal problem that is almost always
tail. This second will can be used to list the little person- overlooked by lawyers. In many states, the laws will not
al things. It does not have to be in existence when the let you refer to a second document in your trust, con-
formal will is executed, and you can rip it up and write tract, or any other paper, unless the second document is
out a new one any time you want. However, your state in existence at the time the document referring to it is
may not recognize holographic wills, and the second created. There is a whole field of law surrounding the
will concept is even foreign to most lawyers because ideas about documents referring to other documents.
everyone thinks you can have only one will —“your This field of law is called the “Doctrine of Independent
last will and testament.” The lawyer that says you can Significance.” You don’t really care about the doctrine,
have only one will doesn’t know any better or is lying. but you do want to have the power to rip up your
Schedule B and write out a new one next week.
By the way, you do know how to tell if a lawyer is ly-
ing? (His lips are moving.) Everybody knows the an- Don't be concerned; the problem can be overcome by
swer to that riddle. It is easy. This next riddle is harder. making a mini amendment to your trust each time you
Do you know what a good dead lawyer does? (He lies want to make out a new schedule. The form you want
still.) to use to make the amendment is shown in Text Box
12.5, and an example of the Amended Schedule B is
Sorry, where were we? Oh yes, we were discussing the shown in Text Box 12.6. By using the forms, you can
personal letter. If your state won’t let you have one with change your schedule as often as you want, and there
your will, don’t panic. If your state won’t let you have a won’t be any problem with the “Doctrine of Independ-
holographic will, don’t worry. In fact, you don’t even ent Significance.” Your lawyer may not have thought
have to bother checking to see if your state will allow a this one all the way through, but it works. It lets you do
personal letter with your will or a holographic will, what you want to do—get rid of the dollies and doilies
because every state will permit your trust to have a and change your mind every week without going back
schedule that disposes of your personal property. I al- to see your lawyer.
ways call the personal property schedule, “Schedule B.”
You could call it “Schedule Dollies and Doilies.” It can I recommend that you stop worrying about putting a
be called by any name. personal letter in your will and go directly to the use of
a schedule in your living revocable trust. Your living
The text of your trust must refer to the schedule. For revocable trust may actually be permitting you to dis-
example, the trust will read as shown in Text Box 12.3. pose of the dollies and doilies in a way that is impossi-
The schedule should refer specifically to the trust. It ble with a will.
should state that it is a list disposing of your personal
property. An example of a Schedule B is shown in Text You may feel that you can’t decide what personal prop-
Box 12.4. erty should go to what person. As hard as it is, you
need to make the decisions. Just do your best and write
them down. If you have written a complete list of per-
sonal property, then when you die, the kids can’t be
mad at each other. One child didn’t “steal” the vase
from another child. You personally gave the vase to a
John and Mary may dispose of personal property by specific person. If you were wrong, and Jim really
making a Schedule “B” and identifying it as part of this wants the vase after you gave it to Jane, Jim and Jane
Trust Agreement. All personal properties listed on the can straighten things out if they agree. But if there isn’t
Schedule “B” are to be distributed to the person or per- an agreement, you, not Jane, are the culprit that cheated
sons designated, and the items shall be conveyed to the Jim out of the vase. Jim can be as mad at you as he
persons in addition to their distribute share, if any, as wants to be. What is he going to do? All he can do is go
described in the provisions of this trust. out and jump up and down on your grave. He can’t be
mad at Jane, because she didn’t cheat him at all. A per-
Text Box 12.3—Language Refer5encing Schedule B sonal property list will assure your interest in preserv-
ing your family relationships after you are gone.
The schedule of personal property is easy to make.
However, it does require a little more formality than the You, or you and your spouse, should sit down every
personal letter. Whereas the will’s personal letter only year or two and redo the personal property distribution
has to be signed and dated, the Schedule B will have to on Schedule B or your personal letter. Most of the distri-
be signed, dated, and notarized each time it is changed. butions won’t change, but they still need to be re-
viewed. Remember, the family fight is over the family
Page 14

The personal property listed below is hereby transferred, conveyed, assigned and delivered to John H.
Doe and Mary A. Doe as Trustees and their successor Trustees subject to the terms and conditions of the John
and Mary Doe Living Revocable Trust dated the 1st of September, 2012 and signed by John H. Doe and Mary A.
Doe, as Grantors. This personal property shall be distributed, according to the Trust Agreement, to the individu-
als indicated on this schedule.

PROPERTY DESCRIPTION NAME

1. Antique sewing machine in walnut cabinet Jane Doe Roberts
2. Shot gun, serial #468942 Johnny Doe
3. Oak dining room table with cabriole legs Joan Doe
4. Six oak dining chairs with pink needlepoint Joan Doe
5.
6.
DATED the 4th day July, 2012.

_________________________
John H. Doe

_________________________
Mary A. Doe
State of Nevada )
: ss
County of Washoe )
BEFORE ME, the undersigned, a Notary Public in and for said County and State, personally appeared
John H. Doe and Mary A. Doe, personally known to me or proved to me on the basis of satisfactory evidence to
be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed
the same in their authorized capacities, and that, by their signature on the instrument, the persons executed the
instrument.
SUBSCRIBED AND SWORN TO before me the 4th day of July, 2012.

WITNESS my hand and official seal.

______________________________
Notary Public in and for said County and State

Text Box 12.4—Schedule B Distributing Personal Property under a Living Revocable Trust

heirlooms or the property which has memories at- The schedules are simply being used to try to move
tached. The Pollyanna game that belonged to Gramma property which wasn’t purchased in the name of the
Sue is more significant than the color TV. trust into the trust. If an asset is purchased in the name
of the trust, there isn’t any legal advantage achieved by
placing the item on a schedule. The schedule is not nec-
essary to invoke the power of the trust over the item
Once your trust is in place, you will purchase any new and to avoid probate. However, it is a good idea to
property in the name of the trust, rather than in your maintain complete records which will lead the succes-
own name. When you open a new bank account or pur- sor trustee to all of the trust assets. Therefore, it is a
chase stock or other assets, transact all of the business in good management technique to maintain the schedule
the name of your trust. When assets are purchased di- or some sort of an inventory, even if the assets are origi-
rectly in the name of the trust, you do not have to go nally purchased in the name of the trust and the sched-
back and write down the description of the new assets ule or inventory doesn’t have any influence over the
on a schedule. asset or its ownership by the trust.
Page 15

This, the third amendment to the John and Mary Doe Living Revocable Trust, dated the 1st day of Sep-
tember, 1998, is made on this, the 10th day of January, 2013, and executed in duplicate between John H. Doe and
Mary A. Doe, acting in their capacities as Grantors, and John H. Doe and Mary A. Doe, acting in their capacities as
Trustees.
WHEREAS, the Grantors and Trustees entered into a trust agreement dated the 1st day of September,
2004, hereinafter referred to as the “Trust Agreement,” and whereas Article 2(C) of the Trust Agreement provided
that the Grantors reserved the right to amend the Trust Agreement in any manner or revoke in whole or in part the
Trust Agreement, and whereas the Grantors are desirous of modifying and amending the Trust Agreement and the
Trustees are agreeable to the modification and amendments contained herein.
NOW THEREFORE, IT IS AGREED:
FIRST
Schedule B, attached to the Trust Agreement as part of the Second Amendment, dated the 15th day of
November, 2005, is hereby revoked in its entirety and a new Schedule B, which is attached to this amendment and
made a part hereof, is substituted in lieu thereof.
SECOND
The Trust Agreement and any prior amendments, if any not revoked or amended hereby, shall in all other
respects remain in full force and effect.
In witness whereof, the Grantors and the Trustees have executed this Third Amendment to
the Trust Agreement.
Dated the 10th day of January, 2013.

_______________________________ ________________________
John H. Doe, Grantor John H. Doe, Trustee

_______________________________ ________________________
Mary A. Doe, Grantor Mary A. Doe, Trustee

State of Nevada )
: ss
County of Washoe )
BEFORE ME, the undersigned, a Notary Public in and for said County and State, personally appeared
John H. Doe and Mary A. Doe, personally known to me or proved to me on the basis of satisfactory evidence to be
the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the
same in their authorized capacities, and that, by their signature on the instrument, the persons executed the instru-
ment.
SUBSCRIBED AND SWORN TO before me the 10th day of January, 2013.
WITNESS my hand and official seal.

_______________________________
Notary Public in and for said County and State

Text box 12.5—Third Amendment Authorizing a New Schedule B

checks, but it does have to be on the signature card as

the owner of the account. But, just for fun we had the
trust name put on the check.
Buying property in the name of your trust is fun. Who
uses trusts? Rich people do. Trusts are the tools of the When you go to the store and use a check, the clerk
wealthy. A strange thing happens when you start to use always asks you for two forms of ID. When Kristy goes
a trust. People will start to treat you differently. to the store and uses a check, the clerk hardly ever asks
her for ID. In fact, I can stand there and question the
Kristy and I had the name of our trust printed on our clerk. “Hey, don’t you need two forms of ID from her?”
checks. No, the trust’s name doesn’t have to be on the The clerk will pick up the check and read, “The Lee R.
Page 16

and Kristy S. Phillips Living Revocable Trust, U/A July

4, 1994,” and then look at Kristy and say “Lady, you
must be rich.” That always helps her ego, but it hurts
the bank account because the clerk takes the check. The biggest mistake you can make is to conclude that
In today’s society where identity theft is becoming a big you don’t have enough property to have a living revo-
issue, it may actually be wise to rethink the information cable trust. That is wrong. You might not have enough
printed on your checks. Rather than your name or the property to justify paying big bucks for the trust, but
name of your trust, it might be best to simply use your even if you have a small estate, you need the protection
initials. That way the identity thief doesn’t have the of the trust. Probate is often more devastating to small
obvious name to forge and to track down to steal your estates than it is to big estates. Of course, people with
identity. Of course, you would never put your Social larger estates critically need the protection of the trust.
Security number, driver’s license number, birth date, or It doesn’t matter if you are old or young, married or
any other personal information on a check. In the old single, or whether or not you have children or grand-
days, you could get away with putting personal infor- children, you should at least investigate using the trust
mation on the check, but today you are asking for trou- for yourself. Whether you admit it or not, you have a
ble if you do that. You might use the office address on moral obligation to your family and loved ones to take
the check rather than your home, or just don’t put an care of your business affairs. The living revocable trust
address on the check. The printing of your checks today forms an excellent basic plan for most people.
shouldn’t be a thoughtless process.

The personal property listed below is hereby transferred, conveyed, assigned and delivered to John H. Doe and Mary A. Doe as
Trustees and their successor Trustees subject to the terms and conditions of the John and Mary Doe Living Revocable Trust dated, as
amended, this, the 10th day of January, 2013, and signed by John H. Doe and Mary A. Doe, as Grantors. This personal property shall
be distributed, according to the Trust Agreement, to the individuals indicated on this schedule.

PROPERTY DESCRIPTION NAME

1. Antique sewing machine in walnut cabinet Jane Doe Roberts
2. Shot gun, serial #468942 Johnny Doe
3. Oak dining room table with cabriole legs Martha Doe
4. Six oak dining chairs with pink needlepoint Martha Doe
5.
DATED the 10th day of January, 2013.

_______________________________
John H. Doe

_______________________________
Mary A. Doe

State of Nevada )
: ss
County of Washoe )

BEFORE ME, the undersigned, a Notary Public in and for said County and State, personally appeared John H. Doe and
Mary A. Doe, personally known to me or proved to me on the basis of satisfactory evidence to be the persons whose names are
subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and
that, by their signature on the instrument, the persons executed the instrument.

SUBSCRIBED AND SWORN TO before me the 10th day of January, 2013.

WITNESS my hand and official seal.

_______________________________
Notary Public in and for said County and State

Text Box 12.6—Amended Schedule B

Page 17

I have seen people actually gain wealth by using the

trust. No, I am not talking about the probate and tax
savings. What I am talking about is very subtle. If you
believe something and you start to act the part, does
your belief often come to pass? If you use the tools of
the wealthy, people who watch you will conclude you
must be wealthy, and they will start to discuss ideas
and opportunities with you. Your world will change,
and you will be in a position to accumulate greater
wealth. Not everyone who uses a trust is guaranteed to
become wealthy, but your chances of becoming wealthi-
er are a lot better if you play the game the way the
wealthy do. Using the tools of wealth puts you on a
different playing field where the rewards are a lot
higher.

Ignoring estate planning is like trying to build a house

from the roof down. Without a good foundation in
place, everything collapses. Don’t be afraid of using a
trust. As you have seen in this ebook, putting property
into a trust is not difficult. It takes some time, but it is
the best way to “use” your trust. Once you have taken
care of funding a trust, you then need to keep it up to
date by putting in future purchases of real estate, stock
or bonds into the trust. You do not need to maintain a
Schedule A. Just buy the properties and open the ac-
counts directly in the name of your trust.

There is one final point I need to state again. Your trust

has three parts to its name – Name of trust, Date of
trust, Name of trustee. All three elements of the name
must be there in order to have the trust hold “good ti-
tle” to the asset. My book Protecting Your Financial Fu-
ture is a complete discussion on how to take care of
your personal estate. It is an easy read, full of interest-
ing stories and helpful scenarios. Get it and use it as
your guide.

© 2021 Lee R. Phillips