*** LIVING.TXT

                        Living With Your Trust

The establishment (execution) of your living trust is the important
FIRST STEP in the estate planning process, which is designed, among
other things, to avoid the cost, inconvenience and publicity of
probate, secure all allowable estate and inheritance tax savings, and
maximize the amount of your estate which will be distributed to your
beneficiaries.

The CRITICAL SECOND STEP is the transfer of ALL of your assets into
your trust.  If you fail to complete this process, the assets not held
in the name of the trust could be subject to probate, negating one of
the primary reasons for establishing the trust.

There are, of course, numerous types of assets you may own.  The
following paragraphs are intended to assist you in accomplishing the
transfer of some of the more common assets.  If you own an asset which
is not addressed below, the general rule is to write to the company or
individual who is administering the asset (such as the general partner
of a partnership in which you are a partner), indicate to them that
you have executed a living trust, and request that they proceed to
transfer your interest to the name of your trust and reflect the
transfer on their records.  They will then advise you of any
additional documentation required to complete the transfer.

1.  Checking & Savings Accounts, Certificates of Deposit, And Other
Bank, Savings and Loan or Credit Union Accounts:  Take your Abstract
of Trust Agreement to the institution, advise them that you have
executed a living trust, and request that the name on all of your
accounts be changed to the name of your trust.  The institution may or
may not change the account number, but you will be asked to sign new
signature cards, where applicable.  No forfeiture of interest on any
interest-bearing accounts should occur because of the transfer to your
living trust.

2.  Real Property:  A transfer deed from you, as the current owner of
your real property, to you, as Trustee(s) of your living trust, must
be prepared, executed in the presence of a notary, and RECORDED in the
county in which the property is situated.  A sample Quitclaim Deed is
provided to assist you.

3.  Deeds of Trust (securing loans which are owed to you):  An
Assignment of Deed of Trust transferring the interest in the Deed of
Trust from you, as the original beneficiary(ies), to you, as
Trustee(s) of your trust, must be prepared, executed in the presence
of a notary, and RECORDED in the county in which the real property
which secures the loan is situated.  A sample Assignment of Deed of
Trust is provided to assist you.

4.  Stocks, Bonds & Investments:  Accounts with brokerage firms can be
transferred by contacting your broker.  He or she will ask you for a
copy of your trust agreement or the abstract and will have you sign
new account documents.  Stocks held by you in your own name must be
transferred by sending the certificate to the transfer agent, along
with a letter of request and a STOCK POWER, signed by you exactly as
your name appears on the certificate and with your signature
GUARANTEED (not notarized) by a national banking association member or
a member of the New York Stock Exchange.  If you have a broker, your
broker can assist you with these transfers.  Investment accounts
require a letter addressed to the administrator requesting the
transfer, after which you will be sent the appropriate documentation
to complete as instructed.

5.  United States Savings Bonds:  Savings bonds must be sent to either
a Federal Reserve Bank or Branch or the Bureau of the Public Debt,
along with a completed Form PD 1851 (available from your bank or any
Federal Reserve Bank), for re-issuance in the name of your trust.  The
transfer will not be considered a distribution of interest to you.

6.  Mobile Homes:  In California, mobile homes pass outside probate to
the lawful beneficiary, who, according to the pour-over will included
in LivingTrustBuilder, would be the surviving spouse, or, if no
surviving spouse, the Trustee of your trust.  Thus, you can elect to
effect the transfer of a mobile home either during your lifetime or
after your death.  For mobile homes registered outside California,
this exemption from probate may not be available.  Please contact your
local registering agency for information as to their requirements and
procedures for transfer before and after death and to obtain the
appropriate transfer forms.

7.  Personal Vehicles, Boats, Etc.:  These items, unless of
substantial value, usually do not have to be held in the name of your
trust as they are considered "personal effects," and the registering
agency usually has forms for transferring these to the rightful
distributees without probate.  You should contact the registering
agency in your area to make certain of their requirements for transfer
upon the death of an owner.

8.  Retirement Accounts:  You should generally change the order of
beneficiaries on your retirement accounts to reflect your spouse as
the PRIMARY (first) beneficiary (so that your spouse can have the
advantage of "rolling over these funds into his or her own retirement
account without tax penalty) and your trust as your CONTINGENT
(second) beneficiary.  If you have no spouse, your trust should be the
PRIMARY beneficiary.  Such a beneficiary designation would ensure that
these funds will not pass to your "estate" (if named beneficiaries are
deceased) and potentially be subject to a probate proceeding.

9.  Life Insurance:  The same principle applies to life insurance as
to retirement accounts, except your trust can be named as the PRIMARY
beneficiary, if you desire, whether you are married or single.

Please remember that although your assets will now be formally "owned"
by you, as Trustee(s) of your trust, you still have the same control
and flexibility with these assets as you had prior to establishing
your trust.  You can do anything with them that you could have done
previously.

The THIRD ESSENTIAL STEP is to remember to take title to ALL ASSETS
ACQUIRED IN THE FUTURE in the name of your trust.  Title to all of
your assets should be held as follows:

If you are a married couple establishing a trust:

     JOHN M. SMITH AND MARY S. SMITH, CO-TRUSTEES,
     THE SMITH FAMILY TRUST (or whatever name you have chosen),
     DATED (the date of execution)

If you are establishing a trust for yourself only:

     JOHN M. SMITH, TRUSTEE,
     THE JOHN M. SMITH TRUST (or whatever name you have chosen),
     DATED (the date of execution)

One of the advantages of a living trust is the ease of administration
and orderly transition of fiduciary responsibility to the successor
trustee(s) upon your resignation, incapacity or death.  Upon The
Occurrence Of Such An Event, However, The Successor Trustee(s) Must
Contact An Attorney To Ensure That The Appropriate Steps Are Taken To
Obtain Maximum Tax Advantages And Proper Control And Distribution Of
Assets.  The cost (payable by the trust) for such legal assistance is
always warranted when considering the risks involved to the trust and
the trustee(s) for failing to take such action correctly.  Your
attorney should work with your accountant to see that the goals of
your estate plan are met.

If for any reason you should desire to remove an asset from your
trust, you simply reverse the process by which you added it to your
trust.  You convey title from you, as Trustee(s) of the trust, back to
you individually.

If you should desire to amend your trust, a sample form is provided
which you may use as a guide.  Remember that you must formally execute
the amendment in the same manner you executed your original trust,
with your signatures notarized.

It Is Strongly Recommended That You Consult An Attorney In Your Area
To Ensure That The Documents You Have Prepared Conform To The Laws Of
Your Particular State.  For this reason, a sample letter to your
attorney is included in the manual for your use in obtaining counsel.