Pamela Polani, Attorney at Law - We Can Travel To You, Providing Affordable Legal Services
RSS

Recent Posts

Please Create Your Estate Plan!!
Time to Talk Estate Planning
Graduating High School? College?
Alzheimer's is a young(er) person's disease -- so get to work!
2016 Spring Luncheon

Categories

ALZHEIMERS
DIVORCE AND ESTATE PLANNING
ESTATE PLANNING TIPS
FORECLOSURE TIPS
GRADUATING SENIORS
PROBATE
powered by

My Blog

THE 5 W'S OF ESTATE PLANNING (and a little bit more)

1.   Why do I need an estate plan?
 
Most of us spend a considerable amount of time and energy in our lives accumulating wealth. With this, there comes a time to preserve wealth both for enjoyment and future generations. A solid, effective estate plan ensures that your hard-earned wealth will remain intact as it passes to your beneficiaries, instead of being siphoned off to government processes and bureaucrats.
 
2.   What if I don't create an estate plan, won't the government provide one for me?

YES. But your family may not like it. The government's estate plan is called "Intestate Probate" and guarantees government interference in the disposition of your estate. Documents must be filed and approval must be received from a court to pay your bills, pay your spouse an allowance, and account for your property--and it all takes place in the public's view. If you fail to plan your estate, you lose the opportunity to protect your family from an impersonal, complex governmental process that can become a nightmare. Then there is the matter of the federal government's death taxes. There is much you can do in planning your estate that will reduce and even eliminate death taxes, but you don't suppose the government's estate plan is designed to save your estate from taxes, do you? While some estate planners favor Wills and others prefer a Living Trust as the Estate Plan of Choice, all estate planners agree that dying without an estate plan should be avoided at all costs.
 
3.   When do I need a Living Trust, and not just a Will?
 
      A Will is a legal document that describes how your assets should be distributed in the event of death. The actual distribution, however, is controlled by a legal process called probate, which is Latin for "prove the Will." Upon your death, the Will becomes a public document available for inspection by all comers. And, once your Will enters the probate process, it's no longer controlled by your family, but by the court and probate attorneys. Probate can be cumbersome, time-consuming, expensive, and emotionally traumatic during a family's time of grief and vulnerability. Con artists and others with less-than-pure financial motives have been known to use their knowledge about the contents of a will to prey on survivors. A Living Trust avoids probate because your property is owned by the trust, so technically there's nothing for the probate courts to administer. Whomever you name as your "successor trustee" gains control of your assets and distributes them exactly according to your instructions. There is one other crucial difference: A Will doesn't take effect until your death, and is therefore no help to you during lifetime planning, an increasingly important consideration since Americans are now living longer. A Living Trust can help you preserve and increase your estate while you're alive, and offers protection should you become mentally disabled.
 
4.   Who will take care of me I have a disabling injury or illness or become mentally disabled and have no estate plan or just a Will?
      Unfortunately, you would be subject to "living probate," also known as a conservatorship or guardianship proceeding. If you become mentally disabled before you die, the probate court will appoint someone to take control of your assets and personal affairs. These "court-appointed agents" must file a strict accounting of your finances with the court. The process is often expensive, time-consuming and humiliating.
 
5. How can I set up a Living Trust and be my own trustee?
 
       Most people act as their own trustees. If you are married, you and your spouse can act as co-trustees. And you will have absolute and complete control over all of the assets in your trust. In the event of a mentally disabling condition, your hand-picked successor trustee assumes control over your affairs, not the court's appointee.
 
6. Will a Living Trust avoid income taxes?
 
       NO. The purpose of creating a Living Trust is to avoid living probate, death probate, and reduce or even eliminate federal estate taxes. It's not a vehicle for reducing income taxes. In fact, if you're the trustee of your Living Trust, you will file your income tax returns exactly as you filed them before the trust existed. There are no new returns to file and no new liabilities are created.
 
 
7.   Can I transfer real estate into a Living Trust?
 
       YES. In fact, all real estate should be transferred into your Living Trust. Otherwise, upon your death, depending on how you hold the title, there will be a death probate in every state in which you hold real property. When your real property is owned by your Living Trust, there is no probate anywhere.
 
8. Is the Living Trust some kind of loophole the government will eventually close down?
 
       NO. Living Trusts have been recognized a legal instrument for centuries. The government really has no interest in making you or your family suffer a probate that will only further clog up the legal system. A Living Trust avoids probate so that your estate is settled exactly according to your wishes.
 
9.    Isn't a Living Trust only for the rich?
 
       NO. A Living Trust can help anyone protect his or her family from unnecessary probate fees, attorney's fees, court costs and federal estate taxes. In certain circumstances even individuals with small estates can derive meaningful benefits.
 
10. Can any attorney create a Living Trust?
 
       YES, but you would be better off choosing an attorney whose practice is focused on estate planning.
 
ost here.

13 Comments to THE 5 W'S OF ESTATE PLANNING (and a little bit more):

Comments RSS
Alfonso Jarvis on Sunday, February 03, 2013 1:41 AM
An important blog! After reading out your blog I have come to know about court will appoint someone to take control of your assets and personal affairs. It is a most important blog for me. Thanks
Reply to comment
 
Pamela Polani on Monday, June 17, 2013 2:32 PM
Please keep reading my blog page; I really appreciate all the feedback!!! Thank you for taking time to let me know; please feel free to also see my profile and further endorse me at: http://www.linkedin.com/profile/view?id=57494044&trk=nav_responsive_tab


immobilienmakler münchen on Monday, February 04, 2013 1:29 PM
Hi........ I was searching for the matter you shared through blog. It is quite interesting and obviously very informative for me. Thanks you very much for the info!
Reply to comment


short sale vs foreclosure on Friday, April 12, 2013 12:50 PM
That's a accomplished post. This estate planing truly good and helpful. Can you give me more estate plan ?
Reply to comment
 
Pamela Polani on Monday, June 17, 2013 2:31 PM
Please keep reading my blog page; I really appreciate all the feedback!!! Thank you for taking time to let me know; please feel free to also see my profile and further endorse me at: http://www.linkedin.com/profile/view?id=57494044&trk=nav_responsive_tab


group package tour on Monday, April 29, 2013 11:25 PM
It' onerous to search out knowledgeable people on this matter, but you sound like you understand what you�re talking about! Thanks
Reply to comment
 
Pamela Polani on Monday, June 17, 2013 2:31 PM
Please keep reading my blog page; I really appreciate all the feedback!!! Thank you for taking time to let me know; please feel free to also see my profile and further endorse me at: http://www.linkedin.com/profile/view?id=57494044&trk=nav_responsive_tab


high fashion jewelry designers on Sunday, May 19, 2013 12:30 PM
You are a very clever person!
Reply to comment
 
Pamela Polani on Monday, June 17, 2013 2:30 PM
Please keep reading my blog page; I really appreciate all the feedback!!! Thank you for taking time to let me know; please feel free to also see my profile and further endorse me at: http://www.linkedin.com/profile/view?id=57494044&trk=nav_responsive_tab


Pamela Polani on Monday, June 17, 2013 2:29 PM
Please keep reading my blog page; I really appreciate all the feedback!!! Thank you for taking time to let me know; please feel free to also see my profile and further endorse me at: http://www.linkedin.com/profile/view?id=57494044&trk=nav_responsive_tab_
Reply to comment


Middle123 Watches on Friday, October 10, 2014 4:08 AM
It is undoubtedly a great and helpful piece info. I’m glad that you just just shared this useful information along with us.
Reply to comment


tag monaco on Monday, December 29, 2014 2:30 PM
I impressed, I must say. Actually not often do I encounter a weblog that' both educative and entertaining, and let me tell you, you have hit the nail on the head. Your idea is excellent; the problem is something that not sufficient people are speaking intelligently about. I'm very glad that I stumbled throughout this in my seek for something regarding this.
Reply to comment


McConnell on Tuesday, January 19, 2016 2:18 AM
Hi there to every one, it's in fact a pleasant for me to pay a visit this website, it consists of precious Information.
Reply to comment

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment