Free The 9 Steps to Financial Freedom by Suze Orman Page A

attorney form he’d drawn up. That was all Sarah would say about the last time she saw her son. As Annie and William were bringing her home, Sarah died.
    After Sarah’s death Peter was notified how much he was to get under the trust. He was furious. He claimed that his mother had promised to transfer the deed to the house over to himwhile she was in Florida. He claimed a lot of other things as well. He threatened to sue. But we sent his attorney a copy of the trust and a copy of the video, and that was that. Even though Peter was actually living in the house, the trust made Sarah’s wishes crystal clear. Her trust overrode Peter’s claims and threats. The trust protected what Sarah wanted to have happen to her money. Had Sarah had a will, not a trust, the probate fee on $3 million would have been $82,000.
    One footnote to this story: Because there was a lot of money at stake here, and because Sarah and Annie were afraid that others might find out how much money they had, their privacy was a big concern to both of them. So there was yet another reason why they were better off with the money in a trust rather than in a will. Wills are public documents, and after someone has died and his or her will has been probated, anyone can go down to the courthouse and look up all the assets you owned and what they are worth. With trusts, only the people entitled to the assets will know what they are and what they are worth.
HOW DO I SET UP A REVOCABLE LIVING TRUST?
    If you want to do it yourself, and if you’re very good about taking care of paperwork, there are books in your bookstore that will show you how—$20, give or take. Computer programs for setting up trusts are available for less than $40. If you decide to do it yourself, though, I urge you to have a qualified attorney look it over to make sure you did it correctly.
    If you decide to work with a qualified estate attorney, depending on the size of the estate and how expensive the attorney is, you should be able to get a simple revocable living trust drawn up for between $500 and $3,000. If you decide you want your attorney to fund the trust—that is, to transferyour assets into it—it may cost you more. Once the trust is set up, making simple changes to it should cost about $100. Obviously these fees will vary, depending on where you live and how complex your requirements are.
    The language of trusts may seem daunting, but it isn’t. Here’s a rundown of the terms you need to know:
    Revocable Living Trust
    Trust:
It’s called a trust because you are entrusting this entity with your assets, for your benefit while you are alive and to carry out your wishes when you can no longer do so for yourself.
    Living:
It’s called living because the trust will be set up while you are alive and will also live on after your death to carry out your wishes.
    Revocable:
Whoever is in charge of the trust—and it will usually be you—can change it at any time, so it is called revocable.
    Components of a Trust: Trustor, Trustee, Beneficiary
    Trustor, or settlor:
The person who creates the trust and who owns the property that will be put into the trust. In the case history just presented, Sarah was her own trustor.
    Trustee:
The person who controls the assets in the trust. Most often the trustor is also the trustee. When you set up a trust, you do not have to give up your power over your assets. Most people continue taking care of everything just as they did before the trust existed. The only difference will be your title. If you and a spouse hold property as joint tenants or in community property, you do the same in the trust, and you can both be trustees. In fact, you can have as many trustees as you want, though having more than two is not usually recommended. Keep in mind that the trustee will have the say over most ofwhat happens in the trust, so choose your trustees carefully, even if you are still going to be a trustee yourself. *
    Co-trustee:
Another person who has the authority