Living Trust

Register A Living Trust

Some states require living trust registration, and you need to be aware of which states have a requirement, as well as how thoroughly they enforce this rule.

Some members have asked if it is necessary to register a living trust with some government agency. As you know, one of the reasons for preparing a Living Trust is to maintain your privacy. Your living trust never needs to become a matter of public record. (The only document you may want to record is a deed that transfers real estate to the trust.)

Some states, however, require that the trustee of a trust register the trust with the local probate court. But there are no legal consequences or penalties if you don't which, in effect, means this is an optional requirement.

When you register a living trust, it doesn't give the court any power over the administration of the trust, unless there is a dispute. For example, if after your death, a beneficiary wants to object to the way your successor trustee distributed the trust property. But if you don't register your living trust, the result is the same: the court still has jurisdiction if a disgruntled relative or creditor files suit. (The only exception is that if a court demands that a trustee register a trust, and the trustee refuses, the trustee can be removed.)

To register a revocable living trust, you don't have to put the whole trust document on file. You only need to file a statement with some information about who the trustee is, etc. The statement must be filed with the court where the trustee resides or keeps the trust records. The statement should include at least the following:

1. The name(s) of the grantor(s);

2. The name(s) of the original trustee(s);

3. An acknowledgment of the trusteeship (that is, a written acceptance by the trustees of their role); and

4. The date of the trust document.

A trust can be registered in only one state at a time. The states that provide for registration of Living Trusts are:

• Alaska

• Colorado (registration of a revocable living trust is not required until the grantor's death and no registration required if all trust property is distributed to the beneficiaries then).

• Florida (not mandatory)

• Hawaii

• Idaho

• Maine

• Michigan

• Nebraska (not mandatory)

• New Mexico

• North Dakota

Remember, there are no penalties for failing to register your living trust; which means that whether or not to register your living trust is a decision that is left up to you. If you choose to register a living trust, be sure to follow the guidelines above and include all necessary information.