- b. Traditional Doctrine: Where a trust sets forth an express, particular method of revocation, only that method of revocation is valid – settlor’s intent controls
- 5. Revocation – No Particular Method Expressed
- a. If the trust is revocable, but silent as to method of revocation, the power may be exercised in any manner that adequately expresses the intent to revoke
- b. Trust can be revoked by writing, by presumption, and even orally (unless real property involved)
- 6. Rights of Creditors of the Settlor
- a. Generally, one should not be able to shield one’s assets from one’s creditors
- If one has a property interest in a trust, one’s creditors should be able to reach that interest
- b. Under the modern trend, where the settlor is the life beneficiary of a revocable trust, creditors of the settlor can reach the property in the trust, even after settlor’s death

### Pro and Con of Inter Vivos Revocable Trusts in Estate Planning

- 1. Benefits of inter vivos trust to hold and manage one’s assets while alive
- a. Professional Management: While a settlor can appoint himself as trustee to hold and administer the trust party, a settlor may appoint a trustee in situations where…
- The settlor anticipates impending incapacity
- The settlor wants to transfer property to minors who lack capacity to hold title
- 1. However, pro management leads to increased costs (trustee’s fees) and administrative expenses in dealing w/ the assets
- b. Segregating Assets: Trusts are a good way of segregating to ensure that assets are not comingled
- Particularly attractive to spouses or partners who want to make sure their assets are not mixed with other assets
- c. Taxes: As long as the settlor retains the power to revoke the trust, for tax purposes the trust property is legally treated as if it were still the settlor’s property, regardless of the trust’s terms
- 2. Time of death for a revocable inter vivos trust avoids probate
- a. Principal benefit of using a revocable, inter vivos trust is that the property transferred to the inter vivos avoids probate, raising an umber of different considerations…
- Avoiding probate saves court costs, and other fees, but those future savings are offset by the fees inherent in having the trust drafted and administered
- Avoiding probate bypasses any of the hassles and delays associated with probating an estate, however, trusts increase administrative difficulties of dealing w/ a property
- Probate requires creditors to bring their claims during a short window, where as creditors get the full SOL for trusts
- Revocable inter vivos trust avoids ancillary probate, even if decedent owned real property in a jurisdiction other than where probate is opened
- No federal estate tax benefits to using an inter vivos revocable trust

### Testamentary Trusts: Pour-Over Wills and Inter Vivos Trusts

- 1. Introduction
- a. Where a will has a pour-over clause giving probate property to the trustee of the testator’s separate trust, the pour-over clause must be validated under…
- Incorporation by Reference;
- Acts of independent significance; or
- Uniform Testamentary Additions to Trusts Act (UTATA)
- b. Pour-over will and trust combination is the most common estate planning combo today, though the property being poured over to the trust under the terms of the will does not avoid probate