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Many
have asked if it is necessary to register
their living trust with some government
agency. As you know, one of the reasons for
preparing a Living Trust is to maintain your
privacy. Your living trust never needs to
become a matter of public record. (The only
document you may want to record is a deed that
transfers real estate to the trust.)
Some
states, however, require that the trustee of a
trust register the trust with the local
probate court. But there are no legal
consequences or penalties if you don't which,
in effect, means this is an optional
requirement.
Registration
of a living trust doesn't give the court any
power over the administration of the trust,
unless there is a dispute. For example, if
after your death, a beneficiary wants to
object to the way your successor trustee
distributed the trust property. But if you
don't register your trust, the result is the
same: the court still has jurisdiction if a
disgruntled relative or creditor files suit.
(The only exception is that if a court demands
that a trustee register a trust, and the
trustee refuses, the trustee can be removed).
How
to Register
To register a revocable living trust, you
don't have to put the whole trust document on
file. You only need to file a statement with
some information about who the trustee is,
etc. The statement must be filed with the
court where the trustee resides or keeps the
trust records. The statement should include at
least the following:
- The
name(s) of the grantor(s);
- The
name(s) of the original trustee(s);
- An
acknowledgment of the trusteeship (that
is, a written acceptance by the trustees
of their role); and
- The
date of the trust document.
States
Providing For Registration
A trust can be registered in only one state at
a time. The states that provide for
registration of Living Trusts are:
 | Alaska |
| Colorado
(registration of a revocable living trust
is not required until the grantor's death
and no registration required if all trust
property is distributed to the
beneficiaries then). |
| Florida (not mandatory) |
| Hawaii |
| Idaho |
| Maine |
| Michigan |
| Nebraska (not mandatory) |
| New Mexico |
| North Dakota |
Remember,
there are no penalties for failing to register
your living trust; which means, in effect,
registration of a trust in the above states is
an optional requirement. All other states have
no requirements to register a living trust.
The
purpose of this newsletter is to stimulate
thought for my clients and those
professionals
with whom I network. If you are a real
estate, estate planning, taxation,
financial
planning or insurance professional receiving
this newsletter, please call my
office
and introduce yourself to me. I'm always
seeking to grow my referral network and
expose
more service professionals to my client base.
I specialize in helping those
individuals
looking to buy, sell or refinance real
property in the Pacific Northwest area. |
