Slide MGT312 Slide14

Estate Planning
Chapter 18

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.

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.

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.

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.

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.