Category: Estate Planning

New FinCEN Residential Real Estate Reporting Rule

Posted on | by Mercy Kurian

What Is Changing?

Beginning March 1, 2026, if you are planning to purchase residential real estate either in an all cash transaction or by privately financing the purchase and you plan to have an LLC or corporation trusts own such property, then you must be report this transaction to the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The purpose of this reporting requirement is to increase transparency in the U.S. residential real estate sector and to combat and deter money laundering.

When Does This Apply?

A report is required if ALL of the following apply:
✔ The property is residential (1–4 family home, condo, co-op, townhome, or residential land)1
✔ The purchase is non-financed (no bank loan secured by the property)
✔ The buyer is a legal entity (LLC, corporation, partnership) or trust; and
✔ No exemption applies (death, divorce, court order, etc.)

What Information Must Be Reported? NOTE: One report is filed per transaction.

The person filing the deed must report:
• Property details
• Seller information
• Buyer entity or trust information
• Beneficial owner information (name, DOB, address, Tax ID, citizenship)
• Total purchase price and payment details

These reports will be maintained by FinCEN in a secure database along with other Bank Secrecy Act (BSA) reports and, like any other BSA report, will be subject to strict limits on use and redissemination. Real Estate Reports will not be accessible to the general public.

1 Properties are considered residential real property even if there is also a commercial element—a single family residence that is located above a commercial enterprise, for example. Additionally, certain types of land on which a residence is not yet built are also included if the transferee intends to build on the property
one or more structures designed principally for occupancy by one to four families

What This Means for You

If you are purchasing residential real estate through an LLC or trust OR our firm is helping you with the deed transfer to an LLC or trust:
• Expect requests from us (or from anyone preparing the deed) for beneficial ownership information
• Allow additional time for the deed to be recorded while this information is collected
• Expect increased fees to be collected as part of the filing fees.
• Expect that if it is determined that you are not exempt, then know that this filing cannot be waived

Exemptions

• Transfers are not reportable if they involve extensions of credit by financial institutions as those institutions that have to abide by their own reporting        requirements2
.• Transfers incident to a divorce or dissolution of marriage or civil union
• Testamentary trusts created by Wills
• Transfers for no consideration made by an individual and/or the individual’s spouse into a revocable trust

Questions?

If you are planning to purchase property through an entity or trust, and need our firm to help you with the deed transfer, then please contact our office early in the process so we can coordinate compliance amongst our team. If we have advised you that you will need a deed transfer as part of your estate planning, then please expect additional time for us to gather the necessary information as well as increased filing fees to be compliant with this requirement.
2 But if the property already has a mortgage on it and our firm is now preparing the deed transfer to LLC or irrevocable trust, we will still need to abide by this additional reporting requirement in addition to obtaining lender consent.

Step-Up in Basis and Joint Trusts

Posted on | by Mercy Kurian

False

The income tax treatment of assets at death is governed by Internal Revenue Code §1014, which generally provides for a step-up in basis to fair market value for property included in a decedent’s gross estate. This means that there is sometimes a significant benefit to holding appreciated assets in one’s own name rather than “selling” them during lifetime and incurring capital gains. It’s important to understand that when married couples hold accounts jointly, 50% of the account is considered to be the other spouse. These are especially important considerations for divorce, gift and death tax purposes.
Community Property vs. Equitable Distribution
Before we begin to see the connection between basis and how property is held in a particular state, we need to understand the difference between community property and equitable distribution. In community property states, IRC §1014(b)(6) provides that both the decedent’s and the surviving spouse’s one-half interests in community property receive a full step-up in basis at the first spouse’s death. As a result, 100% of community property may be sold by the surviving spouse with minimal or no capital gains tax. Joint trusts in those jurisdictions are often designed to preserve community property character and efficiently implement this favorable tax treatment.
New Jersey, by contrast, is an equitable distribution state. Ownership controls. At the death of the first spouse, only the decedent’s ownership interest in an asset receives a basis adjustment. The surviving spouse’s interest retains its historic carryover basis. Accordingly, the use of a joint trust in New Jersey does not replicate community property treatment and does not produce a full step-up in basis.
Limitations of Joint Trusts in Equitable Distribution States
In an equitable distribution state, a joint trust:
• Does not alter underlying ownership interests
• Does not convert assets into community property for income tax purposes
• Does not trigger a full basis adjustment under IRC §1014
In practice, joint trusts may also introduce ambiguity regarding ownership, reduce post-mortem planning flexibility, and complicate basis optimization strategies. Therefore, in New Jersey and other non-community property states, separate revocable trusts, coupled with deliberate asset titling, typically provide greater clarity and tax planning precision.

Think your home is covered under your policy? Check out this article for a common pitfall

Posted on | by Mercy Kurian

FALSE

You bought your home several years ago.  You and your spouse were all excited about the purchase.  You did everything you were supposed to do at that time – i.e got your recorded deed, set up the mortgage, got title insurance, set up the electric and water/sewer accounts, then called up your homeowner’s insurance policy to start up a policy.  But…did you inadvertently skip naming your spouse on the policy?

This past week we had not one but two instances where we found out (post death of one spouse) that the surviving spouse’s name was never listed on the policy.   How did we find out?  In one case, we had transferred the house into an irrevocable trust to do some pre- planning for Medicaid.  The house got recorded in the name of the trust and when the spouse called to add the trust as an additional insured, she found out that she had no authority to do so!! Many irate phone calls later and several calls to coordinate trustee availability across different time zones, we were finally able to get the trust and the surviving spouse listed on the policy.  What should have been a 5min call took almost 10 days to resolve along with undue stress and inconvenience for all parties involved.  Additionally, what if the problem was never discovered and the house suffered damage during this time?  What if there was a fire/theft/flood that required the spouse to file a claim?

Well, that is where all the problems begin.  The  insurance company could likely deny reimbursement of claims because the spouse was not on the policy.

Spend a few minutes and check your policy coverage today.  If your spouse’s name is missing, call the company immediately to add him or her on!  And of course, always consult with your counsel before doing anything that could impact your overall estate plan.

 

Thinking Of Transferring Your Home To Your Children? STOP!!

Posted on | by Mercy Kurian

Answer: True

We often hear from many potential clients at their initial consultations who say they want to transfer their primary residence to their children – they often mistakenly believe that if they do so, then should they fall sick and incur huge hospital bills, their hard earned assets will not get sucked up in paying for their care.

However, in their eagerness to do so, they may inadvertently forego the right to protect and pass down their home in a Medicaid compliant manner and instead fall into the trap of a large penalty being imposed on such a transfer if it happened within 5 years from the date of Medicaid application submission.

This right to protect under New Jersey Medicaid is called the caregiver exemption.

What is the Caregiver Exemption?

In simple terms, the caregiver exemption is an exception that allows people who have provided or will provide care to a family member to avoid penalties that usually come with transferring assets. Normally, Medicaid looks back five years from the date of transfer of money or property to see if the transfer was made for less than fair value ( in other words, if there was a gift made).  If yes, the applicant might have to wait before qualifying for benefits. Instead, if you utilize the exemption correctly, it can help prevent or reduce those delays if certain conditions are met.

Why is This Important for You?

  1. Saving Your Assets: Many people worry about losing their savings to pay for long-term care. This exemption helps safeguard assets for your loved ones if they have spent at least 2 years of their lives caring for you in the home.
  2. Supporting Family Caregivers: If you or someone you love is providing care, this rule acknowledges that and can make it easier to plan transfers and support without penalties.
  3. Making Smarter Choices: Knowing about this exemption allows you to avoid gifting or transfer penalties should you decide to apply for Medicaid when you need it most.
  4. Avoiding Mistakes: It’s important to document your caregiving arrangements properly so that they will qualify for the exemption and won’t lead to costly delays in getting Medicaid.

 

 

How Does It Work?

This rule applies when:

  • You transfer assets to someone who is providing or will provide care for you or a family member,
  • You have a written agreement that details the care services and their value,
  • The transfer and care arrangement follow the rules set out in the law, and
  • You keep good records to show the transfers and caregiving arrangements.

What Should You Do?

If you are caring for a loved one or planning to do so:

  • Keep detailed notes about the care you provide or will provide,
  • Consider drafting a written care agreement drawn up by an elder law attorney and which explains the services and their value,
  • Consult an elder law attorney to make sure your plans follow New Jersey rules and help you qualify for Medicaid without unnecessary delays.

In Summary

The caregiver exemption in New Jersey is a helpful rule that recognizes the importance of family caregivers and can protect your home when you need long-term care. Understanding this law allows you to make informed decisions and get the help you need without losing everything you’ve worked hard for.

If you have questions about how this exemption might apply to your situation, speaking with an experienced elder law attorney can give you the guidance and peace of mind you deserve.

 

Third-Party Special Needs Trust

Posted on | by Mercy Kurian

Answer: True

Article – Third-party Special Needs Trusts (sometimes referred to as Supplemental Trusts) are not subject to Medicaid payback.

In New Jersey, a Third-Party Special Needs Trust (also called a Supplemental Needs Trust) lets you provide long-term support for a loved one with a disability without affecting their eligibility for benefits like Medicaid or SSI.

The critical difference from a First-Party Special Needs Trust (funded with the beneficiary’s own assets) is that a third-party trust is funded with assets belonging to someone else—such as a parent, grandparent, sibling, or friend—and has no Medicaid “payback” requirement. In a first-party trust, the state must be repaid from remaining assets after the beneficiary’s death. With a properly drafted third-party trust, any remaining funds can go to other family members, charities, or heirs you choose.

These trusts can cover “supplemental” expenses beyond what Medicaid provides—like education, travel, recreation, therapies, and adaptive equipment—without counting against the beneficiary’s benefits. This ensures a better quality of life while keeping vital public assistance intact.

Including a Third-Party Special Needs Trust in your estate plan offers peace of mind and flexibility. Because the rules are complex, consult an attorney experienced in New Jersey special needs planning to ensure your trust is structured for maximum protection.

 

Gifting in the Medicaid World – IRS and the Medicaid agency – 2 very different beasts

Posted on | by Mercy Kurian

Time and again clients come to us with the misconceptions about gifting – “My (type in any of the following – CPA, financial advisor, friend, neighbor) told us that we could gift up to $19k a year to our kids or grandchildren.  Why can’t I gift all my money then qualify for Medicaid – it’s the same thing right?

Unfortunately, this is not so easy. The reason why there is a a 5-year lookback on gifts is specifically because the government does not want people to think they can gift away their money and immediately  qualify for Medicaid.  After all, Medicaid is a needs-based program  designed to assist the impoverished when dealing with the devastating costs of long term health care.  The Managed Long Term Care Support and Services under the ABD  program is specifically meant for those individuals deemed “clinically” eligible for Medicaid and have no way to pay for it. However, those individuals who worked hard to build a small nest egg to pass down to their children are heartbroken to know that their house/retirement account or some other savings that they had squirreled away for their kids may no longer be protected from the rising costs of healthcare.  For these people, if they gift without consulting an specialized elder law attorney they may inadvertently make improper gifts thinking it was okay. However, it’s important to keep in mind that the IRS rules do not apply to the world of Medicaid and vice versa. These are 2 different agencies who have different goals and objectives.  The IRS deals with income, gift and estate taxation – their rules are clear –, if you gift $19k each year, you don’t even have to report it to the IRS so long as you only make 1 gift per person per year.  This may be a way to bring down your estate value to avoid this harsh 40% estate tax; however, in the Medicaid world, if you submit an application for Medicaid, gifts  as little as $1k or more made within 5 years of the date of the application will be added together and  a penalty will be assessed based on a certain formula  disqualifying you from getting Medicaid until the penalty period is over.  You could have the gift returned to the applicant so the penalty gets removed, but in NJ, if you have made gifts to several people, then all gifts must be returned to erase the penalty.

So, our suggestion – the next time you hear anyone speak to you about gifting please contact a specialized estate planning attorney to help you navigate through how, when and what gifts to make so as to not jeopardize your entire plan. .  At RLG, we are certified estate planning attorneys, and our goal is to guide you through the process on how to gift and when. Contact us if you have more questions.

Valentine’s Day

Posted on | by Mercy Kurian

Question:  I just got remarried but I have children from a previous marriage. If something were to happen to me, how do I take care of my spouse during his lifetime but ensure that my assets go back to my children after his death?

RLG advice: So you’ve found love again and are navigating the adventure of a second marriage with kids from a previous chapter. Kudos! Let’s chat about some friendly advice on how to make sure your wishes are honored and everyone gets their fair share.

Step 1 – Get your Valentine a gift of a Last Will & Testament or Revocable Living Trust!: Of critical importance to you who has seen Cupid more than once, is to get your Will or Revocable Living Trust – what we call your foundational estate planning documents – signed asap!  In your documents you will state that what passes to your spouse will go in trust (a QTIP or Qualified Terminal Interest Property trust) so that when your spouse passes, the assets can revert to your children. By spelling out “the-what, the-who, the-when and the-how” in a Will or a Rev Trust, you are giving your loved ones the greatest gift of all – the gift of time that they would have otherwise lost dealing with a messy estate where state law determines who should inherit your assets.

Step 2: Don’t underestimate the power of titling of accounts. Remember your Will can be beautifully laid out but it will only control what is in your own name alone i.e your probate assets. However, for those accounts you own jointly with your spouse or if the account has beneficiaries designated (i.e. non probate), then such accounts will pass directly to the joint tenant or named beneficiary outside of your Will or Rev Trust.

Step 3: Deeds must also be re-titled differently. You and your new spouse need to have a frank conversation on what should happen to the family home when you are both gone.  Is this a home you bought together? Is this home yours but he moved into after you got married?  If the end goal is that your children should benefit from this when you are not around, then titling of the deed becomes critical.  If the deed has the magic words “husband and wife” or “married couple” at the end of your names, then the house get a “Tenancy by the entirety will automatically pass to your wife, outside of probate and your children will be out of luck. ).  Talk to your new spouse and figure out whether it makes sense to keep title in your name alone so you can either dictate what happens to it in your Will or Trust, or if you agree to create mirror image Wills that you both agree not to change upon the death of one, this could also ensure that your children will be the final beneficiaries under either Will.

  1. Don’t forget the Elective Share. The law in NJ provides that unless you both had contractually agreed to not receive anything from the other spouse’s estate, if you disinherit your spouse in your estate planning documents, your spouse has a claim for his or her Elective Share against your estate. This means that the disinherited spouse has the right to receive upto 1/3rd of your augmented estate (i.e. probate and non-probate assets). So before you decide to omit your spouse without your spouse’s consent and waiver, you will need to make sure that your spouse is properly provided for with your other assets and everyone is treated equitably.
  2. Communication is critical: Grab a cup of coffee and sit down for a heart-to-heart with your spouse (and if your kids get along with your new spouse, then bring them into the conversation too). Talk to them about your dreams, concerns, and expectations. Then, turn those dreams into reality with legally binding documents like wills and trusts. It’s like making a promise with a seal of approval! Unfortunately, the best laid plans can fall prey to expensive and lengthy court battles when disgruntled beneficiaries make claims that this is not what the deceased wanted.  Explaining things to family during lifetime and supporting that with documentation can bring closure to your grieving family.

Remember, estate planning is about giving your loved ones the gift of time which in turn creates peace of mind and a happy home for everyone. This Valentine’s Day, give the gift of love, laughter, and a happy home to your family!

 

 

 

 

WILLS VS. TRUSTS: IN PLAIN ENGLISH

Posted on | by Mercy Kurian

Everyone has heard of Wills and Trusts. Most articles written on these topics, however, often presume that everyone knows the basics of these important documents. But, in reality, many of us don’t – and with good reason – as they’re rooted in complicated, centuries-old law.

Let’s face it, if you’re not an estate planning attorney, these concepts tend to remain merely that – concepts. So, if you’re “fuzzy” about Wills and Trusts, know that you are not alone. After we show you the difference between all these documents, we’ll let you decide why you think one may be better off than the other for your particular situation.

Wills vs. Trusts: Defined

Let’s take a minute and define both “Will” and “Trust”:

Will. A Will is a written document that is signed and witnessed. A Will is considered a “death” document as it only goes into effect when you die.  A Will provides for the distribution of assets owned by you, but not assets directed to others through beneficiary designations (e.g. life insurance or retirement benefits).  It permits you to revoke or amend your instructions during your lifetime, tends to cost less than a Trust on the outset but costs more to settle during court proceedings after death.  Example – to probate a 50-page Will, you are looking at a cost of $300 just for the filing fee plus more for the Executor Short certificate etc.

Trust. There are 2 types of trusts – (1) A Testamentary Trust; (2) An inter-vivos (or living) Trust.  Inter-vivos trust can either be Revocable or Irrevocable.

  • Testamentary trusts are created under a Will or a Revocable Living Trust and assets pass into such trusts only after the death of a Testator. That means, in order for these testamentary trusts to become effective, death needs to occur.  Example:  My Will states that upon my death my minor child who is 17 now shall inherit my assets at age 35.  This means that a testamentary trust has been created under my Will so that if my death occurs before my child turns 35, the assets passing from my estate will go into a trust until my child turns 35.
  • Inter-vivos or living trusts are legal documents, signed and either witnessed or notarized (or both) effective during your lifetime, during any period of disability, and after death. However, in order to be effective, either trust needs to be funded with your assets.  They are of two types – revocable living trust or irrevocable living trust.

Revocable Living Trust (RLT).  RLTs are nothing more than Will substitutes and form an important part of an individual’s foundational estate plan.  They become effective immediately upon execution and remain effective during your lifetime until terminated.  Just like Wills, they are completely changeable or modifiable during lifetime and minor changes can be added on by restating the original or including amendments.  Upon death, RLTs function just like Wills by providing for the distribution of your assets to your ultimate beneficiaries. It avoids probate if fully funded, provides for a successor trustee upon your death or incapacity, allows for the management of your property – even if you’re incapacitated, can address appointing disability guardians during your lifetime for any minor beneficiaries of your estate and permit you to revoke or amend your wishes during your lifetime.  It does cost more than a simple Will on the outset but much less upon administration, since there is no probate and costly delays are avoided.  If you have property in another states, putting these properties into an RLT will avoid ancillary probate in all these states.  Finally, in NJ, no Inheritance Tax lien is imposed on any of the assets inside the RLT – your estate may still be subject to taxes but there is no “freezing” of the any bank accounts or other probate assets while the estate is waiting for the waivers to be issued by the NJ Tax Branch.

Irrevocable Living Trusts.  These trusts, as the name suggests, are set up during an individual’s lifetime but are irrevocable.  When established, the Grantor (the person setting up the trust) transfers either by sale or gift, assets into this trust and completely gives up all dominion and control over the assets in the trust.  The appointed Trustees now “own” the assets in the trust and manage the assets on behalf of the beneficiaries.  These trusts are set up primarily to save on estate taxes as the assets in the trust are not included in the Grantor’s estate upon death, provides creditor protection both to the Grantor as well as to the beneficiaries and depending on how the trust provisions are drafted, the assets may avoid passing into the estates of the individual beneficiaries as well.  In the Elder Law area, irrevocable living trusts may also be established as part of Medicaid planning to get individuals eligible for Medicaid.  No matter which trust structure is utilized, irrevocable living trusts are sophisticated planning techniques that are established as part of an individual or married couple’s advanced planning.

Probate Process: Key Element in Deciding Between a Will and Revocable Living Trust

A key element in deciding between a Will and a Revocable Trust (your foundational plan) is understanding the probate process. “Probate” – which literally means “proving” – refers to the process wherein a decedent’s Last Will & Testament must be authenticated, outstanding legitimate debts paid, and assets transferred to the beneficiaries.  The downside is that probate can take a long time – even years – it’s expensive in many places and the entire process is completely public, meaning your nosey neighbor Nancy and evil predator Paul both know exactly who got what and how to contact them.  Additionally, as explained previously, in New Jersey, due to the inheritance tax structure, assets passing through probate will have an immediate lien imposed until waivers are obtained.

  • Probate Guaranteed with a Will.If you use a Will as your primary estate planning tool, you own property in your individual name, or property is made payable to your estate, probate is guaranteed.
  • Probate Avoided with a Revocable Living Trust.If you use a fully-funded Revocable Living Trust as your estate planning tool, probate is avoided – saving your family time and money.

 

Consult an attorney who specializes in estate planning & elder law to see whether trust planning is necessary for you and whether they will help in fulfilling your overall estate planning goals.  Trusts may not be necessary in every situation but it is important to understand if there may be ways in which your specific estate plan may benefit from them!

Revocable Living Trusts – Common Misconceptions

Posted on | by Mercy Kurian

A few days ago, I was explaining the concept of “funding” of trusts to some clients who were new to the world of estate planning and I was struck by the fact that what I had always thought were easy concepts to understand caused a lot of confusion to my clients and their understanding of how trusts operate. The two main areas of confusion appear to be in (1) figuring out exactly how trusts differ from wills and (2) the mechanics of how accounts are transferred into trusts causing trusts to become the new “owner” of those accounts. This article hopes to shed light on these two seemingly simple (or so I thought!) concepts – revocable living trusts and trust funding.

We’ve heard people use the word trusts in different settings and under different circumstances. Many people mistakenly believe that all trusts offer asset protection. However, not all trusts are made equal – trusts can either be living (i.e. inter-vivos trusts) or testamentary (i.e. those that become effective upon the death of an individual). All testamentary trusts are automatically irrevocable but living trusts can be either revocable or irrevocable. The person(s) setting up these trusts are interchangeably called Grantor(s), Trustor(s) or Settlor(s) of trusts.

Living trusts are typically stand-alone entities that become effective immediately upon the signing of the trust agreement. Those that are revocable are called Revocable Living Trusts or RLTs or Will substitutes. These RLTs allow a Grantor to set up the trust and retain full control of the trust assets by also being appointed as Trustee of the trusts. The Grantor can also enjoy the full benefits of the trust assets as a beneficiary. There are several benefits for setting up a RLT the most important one of which is that they are meant to avoid probate (i.e. court supervised process) upon death which is often considered to be ridden with hassle in some states. In contrast, Irrevocable Living Trusts are more difficult to be changed once set up. In this case, the Grantor transfers assets into an irrevocable trust by assignment, sale, gift or loan, then typically gives up control over the assets. The primary benefits of irrevocable trusts are that assets are removed from the Grantor’s estate upon his or her death thereby avoiding estate taxes; and these assets are protected from both the Grantor’s creditors as well as the creditors & predators of the beneficiaries. Properly designed trusts may even escape Medicaid recovery and preserve assets for the Grantor’s ultimate beneficiaries should the Grantor be receiving public benefits. Regardless of which irrevocable trust is used, these trusts are typically sophisticated planning techniques established as part of an individual or married couple’s advanced planning. They should always accompany a robust foundational plan complete with a Will and/or a RLT, a General Durable Power of Attorney and Advanced Healthcare Directive. For more information on the benefits of a RLT, check out our earlier posts on this subject1.

When it comes to “funding” trusts though, it is important to note that this term of art has to do with the act of transferring accounts into the trust or retitling assets into the name of the trusts and has nothing to do with refinancing or getting loans to trusts. The following visual imagery may help provide a better understanding how RLTs2 actually “receive” assets.

If you think of your trust as a cookie jar, then our firm would work with you to take your cookie jar from concept to design to set-up. Once you sign the trust agreement, your cookie jar is now ready to be filled with assets or ‘cookies’. And because your trust is like your alter-ego, it can do almost anything you can do. This means that if you have 5 bank accounts each at a different bank and you want to continue to bank at these 5 banks, then you can open 5 trust accounts at these banks. Our office would then provide you with the necessary documentation you need to present to your bank representative who will then open a new trust account and more often than not, it will have a new account number. Depending on the type of trust you are setting up (revocable or irrevocable), the account will either be associated to your social security number or have its own separate tax identification number or EIN# for income tax reporting going forward. This process of funding may involve several back and forth communications with institutions and can sometimes be challenging especially when a representative may be unfamiliar with trusts. This is when your choice of law firm become important so the firm can work with you and the representatives to see this process through to the end.

This article would not be considered complete if we did not address funding in connection with real property, businesses, and accounts with beneficiary designations. Here is a quick synopsis of how these assets are funded:

  • Real property must undergo a title change (i.e. the deed needs to reflect the new owner as the trust) in order for this to properly avoid probate. This deed must be recorded at the county clerk’s office just like any other deed. So long as the property is being transferred into a RLT, and the Grantor continues to reside in the property, a lender holding mortgage to the property cannot trigger the due on sale clause as the Grantor is protected by statute

  • Depending on how a business is structured (LLC, S Corp., C Corp.), a Grantor-owner’s interest could be assigned to the RLT

  • Accounts passing by beneficiary designations, typically retirement accounts, life insurance policies and/or brokerage and investment accounts with beneficiaries, must be amended to ensure the RLT (or its subtrusts for the various beneficiaries) is the primary beneficiary of these accounts.

While funding is a relatively straightforward process and may be handled the Grantor on his or her own, it is always better to do so under the guidance and counsel of the drafting attorney or let the drafting attorney’s office handle the funding process for an extra fee to ensure things get done correctly and time efficiently. Once all of the assets are either moved into the trust or named as a beneficiary of asset, then going forward, it becomes very easy to administer and manage these trusts because any new account that is opened or property purchased can be made directly by the trust.

2 Our focus in this article is mainly on addressing funding challenges with Revocable Living Trusts and only briefly discussed Irrevocable Living Trusts in passing.