Estate Planning as a Career

Many people do not truly understand the benefits and advantages of an irrevocable trust especially in a side by side comparison of a revocable trust. A trust is essentially a function to protect one’s assets and belongings. There are many situations and circumstances that give rise to lawsuits and ones that many people think they will never find themselves in; however, as they say, “Life is a bowl of cherries.”

Litigious circumstances arise, for instance, when and if you allow your child, who happens to be under age, to drive yet runs into a nasty accident. Or your wife or husband said she or he is leaving you and she or he wants half of everything you have. Other cases I’ve seen and heard is a business partner just quit and is taking your largest client with him; your dog just bit the mailman and the mailman is pursuing legal action against you for negligence; your son just impregnated his girlfriend and the girlfriend knows you have some money to support the child; your secretary said she was sexually harassed by her co-worker and she knows your company has the money to pay for damages.

Under the protection of an irrevocable trust, you could be sleeping much better at night knowing you are fully and comprehensively protected. You are protected and your assets are protected because you literally do not own anything. You do not own your house, your car, your investment account which holds a large sum of funds save a small checking account with, perhaps, less than two thousand dollars.

So you believe you cannot be sued? You think that you may never be sued. Certainly if you have nothing in your possession than, yes, you will most likely not be sued; however, most people have some assets of considerable value - namely, your real property. Chances then become considerably higher that you can be sued and be dragged into some litigious c (more…)

We all know of a family whose siblings never recovered from the rift created during their parent’s estate settlement. Greed often is blamed, yet it is not always the cause.

When a death occurs, a seemingly endless number of details need attention in a very short period of time. These can include decisions surrounding burial or cremation, caskets, music, flowers, vaults and services. In addition, families must settle the deceased’s estate, often without any guidelines or expert help.

Consider this typical situation: A mother dies and everyone in the family is aggrieved — an emotional state known to induce poor judgment and rash decisions. No one knows what to do about funeral arrangements, and details about her estate — including the contents of her will, listing of assets, where safety deposit box keys or insurance policies are located, who the family representative is, etc. — are fuzzy.

In cases like this, the children often get together to decide which one would be the best to handle the deceased’s financial affairs. That person is deemed the family representative and must not only manage a myriad of details in unfamiliar legal waters, but also fend off potential squabbles among siblings.

Simple items belonging to the deceased become emotionally charged representations of the parent’s love. Money becomes a measure of caring and an interpretation of parental attitudes toward each child. “She always felt sorry for you, so you got the furniture.”

It’s no wonder families are torn apart so often during funeral and estate settlements. But, a little preplanning and discussion among family members can prevent needlessly high administrative and funeral expenses, unnecessary estate taxes, additional lost work time and the high cost of fighting and hurt feelings.

Preplanning arrangements allow financial and legal decisio (more…)

Probate is a legal process used to ensure property belonging to an individual who has died is accounted for and properly distributed to beneficiaries. During probate, assets must be inventoried and creditor claims, tax liens and outstanding debts must be paid in full before property is released to heirs.

Probate laws vary from state to state and are governed by county and state Probate Courts. Depending on the circumstances and size of the estate, assets can be tied up in probate for six to eighteen months. Many people believe if they file a Last Will and Testament their estate will be exempt from the probate process; however, this is not the case.

One way to ensure your estate will not be held in probate court is to file a revocable living trust. When setting up a living trust, legal title to your property is transferred into the trust and administered by a Trustee. You can designate yourself or someone else as the Trustee. If you designate another individual as the Trustee, they will not have access to your property until you die.

Using a revocable living trust allows you to specify beneficiaries whom you want to inherit your personal belongings and property. Assets transferred to the trust are not considered part of your estate and avoid the probate process. Upon your death, the Trustee can easily distribute assets to designated beneficiaries.

Keep bank accounts out of probate by setting them up as Payable-on-Death. POD accounts can be setup through the bank by filling out a simple form to designate the person you want to inherit the money in your accounts. Typically, spousal joint bank accounts automatically transfer to the surviving spouse. However, to be on the safe side, file a payable-on-death form with the bank to assign your spouse as the beneficiary.

Automobiles, motorcycles, recreational vehicles and watercra (more…)