Some wills and revocable trusts require more than one draft. Often, this depends on how well you've communicated your wishes to the attorney. A revocable trust document may be as long as 40 pages. Your attorney should provide a one-page flow chart, and then a five- to ten-page summary of what's contained in the document.
Feldman gives his clients charts that show how their assets would flow to beneficiaries under various hypothetical circumstances. Read these carefully and ask questions. If you're not comfortable with certain aspects of the plan, ask for them to be changed.
Once the revocable trust and will are finalized, decide who will keep the documents and where. The attorney will give you instructions on how to fund the trust by transferring assets into it and changing title on accounts and property.
Perhaps the most important thing to remember is that a will and revocable trust can be changed and modified. "It doesn't hurt to review them every time you do your tax returns," says Feldman, particularly if you're trying to reduce your estate through gifting.
By law, each parent in a family can give away as much as $12,000 a year -- $24,000 if both parents are living -- per beneficiary before such gifts are taxed. For instance, if you have three children and seven grandchildren, a simple gifting program can reduce your estate tax exposure by $240,000 per year without any assets leaving the family. "If you have an accountant who is thoughtful, knowledgeable, and creative, that person can help you decide when it's time to call your lawyer," Feldman says.
Good lawyers will communicate with a trustee periodically by letter to remind him of the terms of his will and inquire whether he has any interest in making changes. They aren't trying to drum up fees; they simply know that circumstances change and that wills and trusts need modifying. If your lawyer doesn't do this, you should add "review will" to your own tickler file when tax time rolls around.
In the last year, I have been helping my husband's 87 yr old aunt with her estate. We have set up a trust, moved her to assisted living and have been dealing with health issues. This article just confirms we have been moving in the right direction. It has helped to ease my mind that we are doing the right thing. Thanks for a great article. bl