Why Would I Want a Revocable Living Trust in North Dakota
Post on 16-Jul-2015
WHY WOULD I WANT A REVOCABLE LIVING
TRUST IN NORTH DAKOTA?
Why Would I Want A Revocable Living Trust in North Dakota? www.germanlawgroup.com 2
You may assume that trusts are only of value to people who are extremely
wealthy. While it is true that wealthy people do use certain types of trusts, there
is a trust "for the rest of us" called a revocable living trust.
EFFICIENT CONTROL OF ASSETS
When you convey assets into a revocable living trust, you are achieving your
estate planning objectives, but you are simultaneously retaining efficient control
of your assets while you are living.
Why Would I Want A Revocable Living Trust in North Dakota? www.germanlawgroup.com 3
The grantor of the trust is the person who establishes the device. When you
create the trust, you draw up a trust declaration. In this declaration, you name a
trustee to administer the trust, and you also name a beneficiary who can receive
monetary distributions from the
We should point out the fact
that you can name multiple
beneficiaries, and technically,
there can be multiple trustees.
You can act as the trustee and
the beneficiary initially, so you
can retain full control of the
trust throughout your life. In
the declaration, you name
successors to assume these
roles after you pass away.
One of the advantages that you gain when you create a revocable living trust is
the ability to leave behind specific instructions that the trustee must follow after
your passing. You can direct the nature of the monetary distributions.
Why Would I Want A Revocable Living Trust in North Dakota? www.germanlawgroup.com 4
If you want to, you can allow for limited distributions over an extended period of
time to make sure that your beneficiaries do not burn through their inheritances
When you are selecting a successor trustee, you could choose someone that you
know, but many people go a different route. It is possible to use a corporate
trustee such as a trust company or the trust section of a bank. If you use a
professional fiduciary, you can be sure that the assets in the trust will be
administered in accordance with industry standards.
One of the most compelling reasons why you may want to consider a revocable
living trust is the facilitation of
probate avoidance. Probate is
a legal process, and it takes
place under the supervision of
Your personal property would
be subject to the probate
process before it could be
distributed to the heirs if you
use a will to state your final wishes. Probate would also enter the picture if you
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had no estate planning documents at all.
This process is time-consuming, taking close to a year under ideal circumstances.
If there are difficulties, the process could take considerably longer.
In addition to the time consumption, there is the matter of money. Probate is not
free, and money that is spent during probate could have otherwise gone to the
surviving family members.
When you are planning your estate, you should consider end-of-life issues. Many
incapacitated late in their
lives, and this is
something that you
should plan ahead for in
If you were to create a
revocable living trust,
you could empower the
successor trustee to
administer the trust if you were to become incapacitated at some point in time.
Why Would I Want A Revocable Living Trust in North Dakota? www.germanlawgroup.com 6
A revocable living trust can be a good choice as a vehicle of asset transfer for
people who are of relatively ordinary means.
When you create a revocable living trust, you do not surrender control of the
resources. You can act as the trustee and the beneficiary initially, so you are the
trust administrator, and you can receive distributions from the trust.
Because the trust is revocable, you can rescind or dissolve the trust if you want
to take back direct personal possession of the assets. As a result, your control is
Why Would I Want A Revocable Living Trust in North Dakota? www.germanlawgroup.com 7
Assets that have been conveyed into a revocable living trust can be distributed to
the successor beneficiaries outside of probate, and this is the primary advantage.
In addition to the probate avoidance benefit, you can also prepare for latter life
incapacity when you create a revocable living trust. It would be possible to
empower the successor trustee to administer the trust in the event of your
If you are interested in creating a revocable living trust, schedule a consultation
with a licensed estate planning attorney. Your lawyer will fill you in on all of the
details and help you accomplish all of your estate planning goals.
Investopedia http://www.investopedia.com/articles/pf/06/revocablelivingtrust.asp Forbes http://www.forbes.com/sites/janetnovack/2012/10/14/the-forbes-guide-to-
estate-planning/ Cornell University Law School Legal Information Institute http://webserver.rilin.state.ri.us/Statutes/TITLE33/INDEX.HTM
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About the Author
Raymond J. German
As an attorney in Minnesota and North Dakota, Raymond
J. German provides a wide range of estate planning
services to his clients, with a primary focus on helping
them provide for the security of their loved ones, reduce
estate taxes and avoid or at least minimize the costs and
delays of probate, all with a well-crafted estate plan. Mr.
German defines the mission statement for German Law
Group, PC< as "Helping one family at a time pass on
values, beliefs and finances, which can be shared for
generations to come." Mr. German is well aware of the
growing importance of estate planning and dedicates himself to informing the
public of the need for careful attention to their specific situations. He is a
frequent speaker on a variety of estate planning topics, regularly presenting
educational seminars for the public as well as private groups.
Raymond J. German approaches each challenge with not just solid expertise, but
also remarkable enthusiasm and vigor. By constantly seeking simpler, better, and
more effective ways of doing things, he continues to make a real difference in
the lives of families and on the way estate planning is practiced by attorneys
around the country.
German Law Group, PC www.GermanLawGroup.com
GRAND FORKS 2650 32nd Avenue South, Suite O
Grand Forks, ND 58201 Phone: (701) 738-0060
Toll Free: (800) 774-7576 Fax: (701) 738-0064