» » Kansas Living Trust Forms – Irrevocable & Revocable

Kansas Living Trust Forms – Irrevocable & Revocable

The Kansas living trust is a document that enables an individual (the Grantor) to transfer ownership of their property into an entity to be distributed to a Beneficiary (or Beneficiaries) upon the Grantor’s death. Depending on the type of trust created, the Grantor may choose to be the person responsible for managing the trust during their lifetime and (Revocable Trust). Alternatively, the Grantor can file an Irrevocable Trust which offers them no control of their assets but provides protection from collection agencies and reduces estate tax. Both Irrevocable and Revocable trusts are not subject to the probate process.

Laws – Chapter 58a (Kansas Uniform Trust Code)

Will (Last Will and Testament) – A Will operates similarly to a trust, however, the assets placed in a Will are subject to the court administered probate process. It is also possible to transfer to a Will any additional asset not designated to a trust.

Types

Irrevocable Living Trust – The Grantor may not alter an Irrevocable Trust once conceived. Certain tax advantages are offered through this trust type, such as protection from estate tax which would typically be implemented after the Grantor’s death.

Revocable Living Trust – If the Grantor elects to act as Trustee, he/she can modify the trust easily during their lifetime. This includes naming additional Beneficiaries or changing any provision initially established.

Individual Roles

A living trust has several major roles:

Grantor (or “Settlor”) – Original owner of all assets designated to the trust and the initial creator of the trust.

Trustee – Person elected by the Grantor to manage the trust during the Grantor’s lifetime. With a Revocable Trust, the Grantor is permitted to be the Trustee.

Successor Trustee – In charge of managing the trust in the event that the initial Trustee is unfit to do so (death, illness, incapacitation).

Beneficiaries – The recipient(s) of the real estate and property placed in the trust.

How to Make a Living Trust in Kansas

According to § 58a-402, in order to create a living trust, the Grantor (trust maker) must be of right mind or “capacity” to form a trust and they must indicate an intention to do so. They will also be required to designate their Beneficiary(ies) and Trustee, and assign duties for the latter to perform. In addition, the same person cannot be the sole Beneficiary and sole Trustee.

Signing – Once the trust has been completed, it is highly recommended for it to be signed in the presence of a Notary Public or two (2) disinterested parties (meaning they do not have a financial gain due to the trust’s creation). Afterwards, there is no requirement for it to be filed or registered with any county or State agency and should be kept in a safe place by the Trustee.

All property that is placed in a trust document must also be reflected on any and all ownership. This means that the following items must reference the trust as the owner:

Motor Vehicles – The title to the automobile, boat, motorcycle, RV or any other type must show the trust as its owner. Additionally, a Kansas Bill of Sale should be completed to prove the change of ownership.

Real Estate – Have a Kansas Deed filed with the County Recorder’s Office in the jurisdiction where the property is located (see County List).

Websites – Must be reflected by changing the ICANN (WHOIS) ownership. This can be done by contacting your registrar and updating the administration information.

Do I Need a Living Trust?

Implementing a living trust should be dependent on your estate preferences. For example, the Heirs of an individual may still opt out of the probate process by filing the Small Estate Affidavit only if the decedent had assets and property (less liens and encumbrances) of forty-thousand dollars ($40,000) or less. The property and assets will be spread evenly to all the Heirs of the estate.

In conclusion, if an individual does not have more than $40,000 in their estate and has no preference as to which Heirs receive their property, a living trust is not needed. Although, if a person does have a substantial estate or would like their assets to only go to certain individuals, the living trust should be created.

Resources


ABOUT SSL CERTIFICATES