Assets which require a legal document for transfer into the trust may be prepared by selecting assignments, deeds and correspondence listed on the Asset Transfer Documents menu in Trust Plus. If two individual trusts are prepared for a couple, selections may be made to transfer each asset into either his trust, her trust, or both trusts as tenants in common. This greatly minimizes the time involved in correct titling of assets into the respective trusts, with accurate language for titling to the trust automatically inserted by software. The correct language naming trustee(s) of the trust(s) created will be entered on each asset transfer document, minimizing proofreading time and increasing accuracy in addition to minimizing time required to draft each individual transfer document.

Start by selecting your documents on the Asset Transfer Documents menu. Additional information needed for any particular assignment or other document will be prompted for.

Asset Transfer Documents include:

• Business Assets Assignment
  The Business Assets Assignment transfers non-corporate business assets into the trust (including sole proprietorship and partnership assets). The box next to 'Agreement restricting transfer needs to be revised' is to remind the drafter to ask about potential buy-sell or partnership agreements which may restrict transfer. If this is the case, the agreement should be amended, or approval of the transfer into the trust should be obtained in writing from all partners.
• Closely Held Stock or LLC Assignment
  The Closely Held Stock or LLC Assignment is an exact duplicate of the language on the back of closely held stock certificates. Language from the assignment prepared by the software may be inserted into the language on the back of the actual stock certificates, or the separate assignment may be used. The box next to 'Agreement restricting transfer needs to be revised' is to remind the drafter to ask about potential buy-sell agreements, corporate redemption agreements, or other restrictions on stock transfer. If restrictions on transfer do apply, the agreement should be amended, or approval of the transfer into the trust should be obtained in writing from all shareholders.
• Farm Assets Assignment
  The Farm Assets Assignment transfers farm personal property such as machinery, livestock, and equipment to the trustee(s) of the trust(s).
• Promissory Note Assignment
  The Promissory Note Assignment is used to transfer any promissory note on which the grantor(s) of the trust are creditor(s), when the note is not secured by a mortgage. (If it is secured by a mortgage, use E. Note and Mortgage Assignment.) Asking about any indebtedness owed to the client(s) often brings up discussions of intra-family loans. If the client(s)' intention is that indebtedness from family members be repaid or applied to reduce the inheritance of the debtor-beneficiary, then a promissory note should be signed. If intra-family notes exist, it is important that payments received be clearly indicated somewhere, so determining amount outstanding on date of death isn't difficult to do. This can be a great area of contention between beneficiaries, and can create tax problems if records are unclear. Imputed interest rules of I.R.C. § 7872 should also be considered when intra-family loans exist.
• Note and Mortgage Assignment
  The Note and Mortgage Assignment is used to transfer a promissory note which is secured by a mortgage, where the grantor(s) of the trust are creditor(s). As discussed under the Promissory Note Assignment, asking about any indebtedness owed to the client(s) often brings up discussions of intra-family loans. If the client(s)' intention is that indebtedness from family members be repaid or applied to reduce the inheritance of the debtor-beneficiary, then a promissory note should be signed. If intra-family notes exist, it is important that payments received be clearly indicated somewhere, so determining amount outstanding on date of death isn't difficult to do. This can be a great area of contention between beneficiaries, and can create tax problems if records are unclear. Imputed interest rules of I.R.C. § 7872 should also be considered when intra-family loans exist.
• Contract Assignment (Contract for Deed; Land Contract)
  The Contract Assignment assigns grantor(s) interest in a land contract or contract for deed, whether grantor(s) are vendor(s) or purchaser(s), since either way, the contract is grantor(s)' asset.
• Promissory Note
  The Promissory Note is available as an option here since, so often in discussing intra-family loans, it becomes clear that loans exist, and that clients expect the loans to be paid or to reduce the inheritance of the debtor-beneficiary, but no written note is in existence. The promissory note selection makes it easy to create a promissory note for the client(s) under these circumstances.
• Quit Claim Deed
  The Quit Claim Deed transfers whatever interest the grantor(s) may have in the particular parcel of real estate to the trustee(s) of the trust. No warranties as to the title are given or implied.
  
  Deeds are state-specific where appropriate and include the option to generate an Affidavit to Mortgage Holder, a Mini-Certificate with legal description, and a Cover Page with legal description.
• Warranty Deed
  The Warranty Deed transfers the grantor(s)' interest in the particular parcel of real estate to the trustee(s) of the trust. With this deed the grantor(s) fully warrant good, clear title to the property.
  
  Deeds are state-specific where appropriate and include the option to generate an Affidavit to Mortgage Holder, a Mini-Certificate with legal description, and a Cover Page with legal description.
• Assignment of Motor Vehicles
  The Assignment of Motor Vehicles is for use when actual transfer of vehicle titles into the trust will create licensing, tax, or other issues. This assignment is better than no assignment at all, and hopefully, will be accepted by the motor vehicles' department to actually transfer titles of vehicles owned at the time of grantor(s)' death. It is definitely more beneficial to complete an actual title transfer through the state Department of Motor Vehicles or similar agency.
• Letter to Client Re: Conflict of Interest Disclosure
  The Letter to Client Re: Conflict of Interest Disclosure option, if selected, prepares a letter to be sent to spouses stating that, in requesting that the attorney represent both spouses in the estate planning process, both spouses understand that the attorney cannot withhold information from either spouse, and that if disagreements would develop between spouses, the attorney would withdraw as the attorney representing both spouses. Prior to representing both spouses, it is important to consider potential conflicts of interest, and, if they are too strong, to advise one of the spouses to obtain separate representation.
• Billfold Card for client use in titling new assets
  The Billfold Card for client use in titling new assets, containing the proper language for titling of assets, will be prepared by your software, so the client(s) can have language for accurate titling of their assets in their billfold at any time. If two individual trusts are created, three billfold cards will be created - one for his trust, one for her trust, and one for the two trusts as tenants in common. For future assets acquired, the clients may use whichever card will accurately title the asset. The cards may be laminated as a service to the client(s). It is convenient for the client and third party institutions, and an effective marketing technique as well, to insert your business card on the back of the billfold card for easy reference. The billfold card specifically states that ownership of tax-deferred assets should not be transferred to the trust, to prevent potential issues created by a client using the billfold card in regard to titling of tax-deferred assets.
• User-Defined Documents
  Cowles Customizer allows you to insert any documents of your choice, with merge codes from easy drop down menus integrating your documents with all Cowles' documents

Call us today at (800) 366-1730, or email us at west.appsupport@thomson.com if you have any questions or would like more information on the Cowles system.

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