Imagine you’re in the grocery store and you overhear this conversation: “I love my kids, but since they’ve both become really opinionated it feels like every family get together there’s some kind of fight. Sometimes I just want to disinherit them and give all our money to a peace-keeping charity to make a point.” “I know how you feel. I’ve threatened to disinherit Suzie, but she just laughed and told me that the charity would probably be corrupt by the time I die and so it’ll all go to waste anyway. I’m thinking I’ll just give away most of my money now while I can still make sure it goes to places I like.” “Oh, that’s an idea. But then,…Read More
Overview Of Probate Avoidance Trust If you are single, if you are married but have very limited assets (and do not mind the surviving spouse making any changes they want after your death), or if all of your estate is going to charity, you may want to consider a probate avoidance trust. This type of trust is not designed to use tax minimization strategies. Instead it simplifies the process for the trustee. It also provides benefits that are common to revocable living trusts, such as distribution according to your terms while avoiding the headaches of probate (assuming your trust is properly funded). How It Works If your probate avoidance trust is for just you (either as a single person or as a married…Read More
The Trust Process Includes: Draft the Trust Documents Draft a “Pour Over” Will Fund the Trust Rest Easy Trust Set Up Process You’ve decided you want a trust, done all the research (or worked with an attorney), and know what kind of trust you want to set up. How does the trust process go from here? Draft the Trust Documents. Usually there will be a few different documents relating to the trust. The trust agreement, which establishes the trust and dictates the trust’s terms, is the primary document. You may also create a certification of trust. The certification is authorized by CA law and contains only some of the information about the trust. You use the certification to prove to financial institutions…Read More
The Importance Of Outlining Your Health Care Wishes Now Do you remember the Terri Schiavo case in Florida? If you don’t, here’s a quick refresher. Terri Schiavo was on life support for several years. After years of unsuccessful treatment, her husband filed a petition to discontinue her feeding tube. Terri’s parents protested. They fought each other in court for 7 years over what should happen. This chaos could have been avoided with a living will. California combines the living will document with a health care power of attorney in one document called an Advance Health Care Directive. This document allows you to identify the person(s) who should be allowed to make health care decisions for you along with listing limitations on…Read More
Anyone who wants to protect themselves and their assets in the event of an unexpected emergency should have a power of attorney. A power of attorney is a legal document that authorizes someone else to act on your behalf, as your agent. It can be limited and only give power in a specific area and/or account. For example, if you work with a professional investment manager who handles your assets, you have likely signed a power of attorney to allow them to make trades in your account on your behalf. Alternately, they can be very broad and confer a large number of powers. The power of attorney (POA) can take effect immediately (as soon as you execute the document and…Read More
Not everyone needs a trust because there are other options and, in some (limited) circumstances, a trust may not be warranted. Wait…What Do You Mean When You Say Not Everyone Needs A Trust? If you’ve been doing research on estate planning, you’ve likely read article after article discussing the importance of a trust, how trusts work, and the pros and cons of different types of trusts. It may sound like absolutely everyone needs a trust. But, there are other options and, in some (limited) circumstances, a trust may not be warranted. As always, please consult your lawyer before you decide what option(s) are best for you. This post is designed to be a general education tool, does not constitute legal advice,…Read More
What This Post Covers: Why does the type of trust matter? What types of trusts are there? What about a pet trust or other terms? What To Consider In Setting Up A Trust After reading all about how wonderful trusts are, you may have decided to go ahead and get a trust set up. So, what’s the next step? If you’ve decided to work with a lawyer, your lawyer should go through your financial circumstances and your wishes for how you want your estate handled. After reviewing that information, your lawyer will be able to recommend the type(s) of trust(s) which are best for you. From there, you can move forward with getting your trust (and perhaps other estate planning…Read More
What’s The Fuss With Revocable Living Trusts, Anyway? If you’ve looked into estate planning, chances are you quickly came across revocable living trusts. These trusts reign as the king of estate planning tools. But are revocable trusts worth the expense or is it all just hype? The short answer is that revocable living trusts really are just that good. There are a number of reasons to establish a trust and several of them are explored below. Please note that these are not all of the benefits that a revocable living trust can offer, but these are some of the key reasons to consider establishing a trust. Avoid Probate With A Revocable Living Trust Probate is the court process for the…Read More
About Estate Planning At its simplest, estate planning ensures YOUR wishes are followed and makes the estate process as easy for your loved ones as possible. An estate plan will help you reach your goals, whether you want to avoid probate, minimize taxes, ensure your children are taken care of, or enforce your wishes regarding medical treatment even if you are unconscious. There are a variety of legal estate planning tools you can use. Some of the more common tools include: Revocable living trusts: A revocable living trust is a trust that you can change or revoke if you (and your spouse, depending on the circumstances) are alive. These trusts are very popular since they allow your assets to pass…Read More