Slide MGT312 Slide14

Estate Planning

Estate Planning

Asset as Nonprobate Property

•Most of individuals’ assets are nonprobate property.

•It means transferring ownership does not involve court.

•_{A person can write a will to transfer}

Estate Transfer

• Transfer by contract.

▫_{Transfer by beneficiary contract designation.}

▫_{Transfer by property ownership contract}

designation.

▫_{Transfer by payable-on-death contract}

designation.

Trust and Estate

•Trust is legal arrangement between a grantor and a trustee.

•_{A grantor is the person who makes a grant}

of assets to establish a trust.

•_{A trustee is the person charged with}

Living Trust

•It is a trust that takes effect while the grantor is still alive.

•It consists of revocable living trust and

Testamentary Trust

•It is a trust which becomes effective upon death of the grantor according to the

grantor’s will or revocable living trust.

•The trust can provide money or asset