Mportant Information About Your Revocable Living Trust (Page 3 of 10) in pdf

& F

, P.C.

ADE

OODS

ILL

ARLEY

Part II of this memorandum includes some general information about tax reporting. In general, during your

lifetime, the trust is ignored for income tax purposes, and reporting of income is no different than when you

owned your assets outright. However, if you are not one of the trustees, the trustee should send you a list of

income received and deductible expenses paid. You should review Part II to understand the general rule. You

(or your successor trustee) should call us or your accountant if you have questions.

PART I--FUNDING YOUR REVOCABLE LIVING TRUST

General Form for Holding Title

In general, you should use this format for titling assets in the name of your trust:

The ___________________________ Trust, dated __________

[Name of your trust]

In your trust agreement, the name of the trust will appear at the top of the first page, and also in article 2.

Identification of Trustees

When you acquire or sell property in the name of your trust, you may be asked to provide evidence of who the

trustees are, and who can sign for the trust. You may, of course, provide a copy of the trust agreement to show

that information. However, you may not want to disclose the entire trust agreement.

Usually an institution such as a bank or brokerage house will be satisfied with simply receiving copies of the

first page and signature pages of the trust agreement, rather than the whole document, and we would be happy to

discuss that with them. You could also give them a copy of the Statement of Authority, which is a document

that lists the name of the trust, the trustees’ names and addresses, and who may act on behalf of the trust.

Real Estate

Real estate can generally be transferred to your trust by signing and recording a deed. Colorado law allows real

property to be titled in the name of the trust itself (without naming the trustee in the deed), as long as a

Statement of Authority is also recorded in the real estate records to show the identity of the trustee(s). If there is

a change of trustees, a new Statement of Authority should be recorded to reflect the change before the property

is conveyed by the trustees. Please let us know if you need a Statement of Authority, and we will be glad to

provide one to you.

Before you transfer any real estate to your trust, there are several special issues that you should consider:

Mportant Information About Your Revocable Living Trust Page 3