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 confrontation. Did you know that in California, lawsuits are as common as eating, drinking, using the toilet, and sleeping? According to superior court records and statistics, almost nine million (9,000,000) lawsuits were filed in California during the 2003 to 2004 fiscal year alone and over 30% of lawsuits were filed in Los Angeles County alone.

What has become a frightening reality is that approximately ninety (90%) of legal advisors offer the wrong advice. Most of these so-called legal experts will inform you that a Limited Liability Company or Corporation or Partnership will avoid fraudulent lawsuits and protect your assets. Ignorance is bliss. Ignorance is also no excuse and it can cost you a lot more than just your money. The stress, the heartache, the frustrations of any lawsuit is frightening and a reality for thousands of people every day. We all know the reality is that the one who is being sued and with a considerable sum of funds and assets stands to lose the most and most will end up in the coffers of the legal advisors themselves. The same legal advisors who were supposed to help protect your assets initially offer bad advice to you but good advice to themselves since they understand that you will be coming back for their services shortly.

author bio - Rocco Beatrice, CPA, MST, MBA

award-winning estate planning & trust expert

MS - Taxation, Master of Science Taxation

MBA - Management / Taxation

BSBA - Management / Accounting

CPA - Certified Public Accountant

http://www.ultratrust.com

71 Commercial Street #150 Boston, MA 02109

tel: +1.508.429.0011 fax: +1.508.429.3034

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Dear Mr. Beatrice: The information I learned from you is absolutely invaluable. I have listened to many ‘asset protection’ attorneys…

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Dear Rocco, if it wasn’t for you, I still would be in the middle of a most/most unpleasant event. Your persistence of repositioning my assets with three separate Ultra Trusts definitely saved me from selling pencils on…Time Square.

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 decisions to be made when logic rather than emotion is the controlling factor. Parents and their grown children must be willing to discuss issues such as: What funeral arrangements are important to everyone? What are the options if a surviving parent can’t live on his or her own? Are there mementos that are especially important to more than one family member?

These are difficult questions that can have serious financial and legal ramifications. It may be in your best interest to involve a neutral third party such as an attorney or a trust officer in your preplanning arrangements. Solutions to these and other problems aren’t difficult to achieve when people have an opportunity to explore the issues over time. Creative strategies can be designed to benefit both sets of generations.

Initiating a family discussion is the hardest part. Try sending a copy of this article to your siblings as a starting point. Then take the initiative to arrange a time to discuss the issues with your parents and siblings together as a family. Involve neutral third parties if necessary, and ensure that all your parents’ wishes are acknowledged and respected.

Meanwhile, if the subject is such a difficult one that you simply can’t break the family silence, you need to understand that it will be an even greater dilemma when a death occurs and family members are unable to handle estate matters appropriately. Consider appointing a corporate trustee to settle your estate. The investment in a trustee now could save your family financially — and emotionally — later.

In the long run, a little planning and forethought will save you time, money and the high emotional cost of silence.

Randall H. Fields

Randall Fields is nationally known speaker, an attorney, a financial advisor, and a registered representative of a large securities brokerage firm. He has extensive experience in contract negotiation, risk management and investment planning. Randall has served as chairman of two nonprofit organizations with assets in excess of a billion dollars, and currently serves as a director of several businesses and charities. He and Nancy, his wife for 35 years, have three children. Rebecca is a graduate student at Exeter College, University of Oxford, Travis is a senior at Texas A&M University, and Elizabeth is a sophomore at Blinn College. Randall and Nancy reside in San Antonio, Texas.

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 watercraft can be kept out of probate by designating a Transfer-on-Death beneficiary. Similar to the POD bank account, the designated beneficiary will assume ownership of your vehicle in the event of your death. Transfer-on-death benefits are not available in all states. Therefore, you will need to inquire with your state’s Department of Motor Vehicles or visit their website to determine if TOD is applicable.

A lesser known way to keep your estate out of probate court is to give your belongings away while you are still alive. Oftentimes, people who have been diagnosed with terminal illness choose this option. Individuals will sign over the title to their home or car and gift it to their children, spouse, siblings or friends.

When you gift real estate, automobiles and other valuables prior to your death, it reduces the size of your estate. In many states, estates under $50,000 are not required to undergo the probate process. If the estate does have to go through probate, reducing the value can lower costs associated with the process.

It’s important to note that you can gift property to others at any time in your life. However, if gifts exceed more than $12,000 to any one individual during a calendar year you are required to file a gift tax return.

Depending on the assessed value of your estate, there may be other options to further protect your assets and avoid probate. It’s best to consult with a professional who specializes in Probate and Inheritance Law. By setting up a revocable living trust and taking steps to keep your estate out of probate, you will save your loved ones considerable stress and emotional turmoil at the time of your death.

Simon Volkov is a private note investor who specializes in helping individuals quickly liquidate their assets. From forthcoming Inheritance windfalls to Probate, Simon Volkov offers a host of solutions for those in need of cash. Learn more about probate, real estate and investment opportunities by visiting http://www.SimonVolkov.com