Trusts and Wills
May 26th, 2009 Filed under: ab trust,Executor Fees,sample wills,Trusts attorney — Estate Planning Author
Most people think of wills as useless or redundant document. They believe that their assets are not large enough, or if they have opted for join ownership, wills are not required.
Many people put an additional name, other then their own, in their investments, bank accounts and real estate assets. This strategy has three major problems. First problem is that when you place an additional name, you expose your assets to creditors of the other person. Though, at a later point in time you might argue in court that it was done for estate planning, the argument may not be valid. Second issue is with real estate. Once you place some one else’s name on real estate asset, you might have a tough time getting that asset back or stopping him / her from transferring the rights to a third party. In fact, in some cases, children have prevented parents from leasing, renting and selling real estate, where they were co owners, saying that their parents were making bad real estate decision. This can become a cause of dispute among family members.
Third issue is the tax issue. Say you transfer the ownership of a real estate asset during your life time to another person, and then this is considered a gift by Revenue Service. Any capital gains will be taxed. If you leave your asset to an heir, then this will not be considered gift and capital gains tax can be avoided. You can help your heirs save money payable in taxes due to any capital gains accrued on the property.
If you make a will, you can name two people, first the executor and a second person to back this person up. In case the first person whom you had nominated is not willing / not able to execute your will, the other person can take up those duties. If you let the courts decide, there is a court fee charged and that will be an additional expense. By naming two people, you can avoid any conflict in execution of your will.
Many states offer Statutory Wills. These documents are available in public libraries or with public representatives.� Your will or form is perfectly legal, if it is completed in proper manner and witnessed. This is a free service and will not cost you any money.
To sum up one can say that it is absolutely fine with putting an additional name with bank account so that on your death, other person has access to cash. This strategy is however, not very viable with wills. The other thing is that in case you die due to an accident or malpractice, your heirs may be awarded a compensation which will increase the value of your assets. A proper claim against the wrongdoer can see substantial increase in assets.
To get more information about online Wills, probate, power of attorney, or Estate Planning, just visit our sites.
