1. Estate Planning Chapter 18

2. 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 ownership of assets.

3. Estate Transfer Transfer by contract. ▫Transfer by beneficiary contract designation. ▫Transfer by property ownership contract designation. ▫Transfer by payable-on-death contract designation. Transfer via a will.

4. 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 carrying out the trust for the benefit of the grantors and heirs.

5. Living Trust It is a trust that takes effect while the grantor is still alive. It consists of revocable living trust and irrevocable living trust.

6. 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 management after the grantor’s death for the heirs’ benefit.