Which of the following is an estate planning tool designed to minimize probate c

Question

Which of the following is an estate planning tool designed to minimize probate costs?

A. Purchasing an annuity that is payable to one's spouse on the owner's death.

B. Allowing property to pass by intestate succession.

C. Creating a revocable living trust, but funding the trust with a pour-over provision in the decedent's will.

D. None of the above.

A. Purchasing an annuity that is payable to one's spouse on the owner's death.

B. Allowing property to pass by intestate succession.

C. Creating a revocable living trust, but funding the trust with a pour-over provision in the decedent's will.

D. None of the above.

Explanation / Answer

Answer

C. Creating a revocable living trust, but funding the trust with a pour-over provision in the decedent's will.

Explanation :

A recovrable trust allows to hold the legal title & provide macanism for management & distribution of the asste in case incapability or death . A proper documented & funded recovrable trust helps to minize cost relating to probate. To have a recovrable trust there must be  pour-over will

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