But a Trust is ineffective if it is simply a legal agreement. The Trust must have property put into it (called “funding”). This is where you title your home and bank accounts into the Trust, such as The Mike and Mary Jones Revocable Trust dated January 1, 2014.

This actually comes into play more often than you would think. The cases that we normally see this is where the Grantor has an automobile accident or some sort of physical problem during their lifetime. Then it’s discovered that they purchased a piece of property that didn’t make it into the trust. If there wasn’t a will, then these assets would have to be probated, which would defeat much of the benefits of having a trust. Or worse still, the beneficiaries would argue over who was to receive the new assets.

Further, in a will you can nominate a guardian for your children.

In addition to the cost savings, there are also privacy benefits to having a Trust. The assets within the Trust do not have to be disclosed to the public upon death. This is completely different than a will, in which case all of the assets are publicly disclosed.

There is also a benefit in speed. The property that consists of making up the trust can be quickly distributed to the proper recipient after the Grantor’s death, which is a significant benefit as compared to the time delays caused by the probate process.

Further, along with the avoidance of probate in Kansas, “supplementary” probate management in various other states where property is owned could be avoided by transferring the out-of-state property to a revocable living trust. If you own real property (like a vacation home, or oil and gas well interests), this can be a significant advantage.

Finally, you can provide the Trustee with how you want the property to be run. In case of a family business, you don’t have to sell right away. Instead, the Trustee can work with the beneficiaries to maximize value before transferring the business to your heirs/beneficiaries.

Also, you can name a Trustee while you are still alive. This is very helpful if you were to become physically or mentally incapacitated (think heart attack). You don’t have to go to court to do this.

You can even name more than a single trustee. Many times, we see a surviving spouse name their children as co-trustees upon their death. We do pay special attention to make sure that their duties are spelled out (who can pay debts individually versus all together).

But once the Trust becomes irrevocable, then it must file a tax return. Properly planned, there is little to no income taxes that should be paid as part of a Trust becoming irrevocable.