Trusts are a good way of transferring one's assets with the least amount of intervention by the IRS and other “interested” parties. It sounds simple, but there's a world of confusion surrounding trusts.
Jack W. Everett, a CFP, sorted out the confusion and wrote, “The Truth About Trusts: A Trustee's Survival Guide.” In it, he walks readers through the land mines of regulations and laws that require making crucial decisions while managing assets.
The book is a layman's guide, with the author bluntly stating, “Most people don't understand trusts.” However, brokers will benefit from its insights.
In Chapter 5, “Transferring Assets to the Trust,” Everett says stocks and bonds should be maintained in a brokerage account. Then, the entire account can simply be moved into the trust, which can minimize problems with fractional shares. Liberal doses of tips on handing securities are sprinkled throughout the book.
This book also points out common mistakes to avoid. For example, it's quite possible to forget to include a stock in a trust or that your clients may need to change the trust when they refinance their home.
“The Truth About Trusts,” published by FTPC Publishing (ISBN 096263414X), costs $27.95 and is available at selected bookstores and online.
