This comes up often; here's the answer --
How Can We Protect Any Unauthorized Changes to a Living Trust?
Tuesday, January 18, 2011
Saturday, March 6, 2010
Avoiding Probate with a Living Trust
The main purpose of a living trust is to avoid probate. Probate is the legal process in which a will is determined to be valid, as well as determining how an executor or representative of an estate distributes the property of the person who has died. Each state has a minimum value of an estate for probate, meaning that if the estate is valued lower than the state minimum, no probate would be required. Otherwise, the assets owned generally must first go through the probate process in order to transfer funds to the heirs.
The probate process can be used to validate a will, transfer property, ensure that all debts are paid (including probate and legal fees), and change the name of titled assets from the decedent to the heirs. Probate does have its purpose; however, this process also has some significant disadvantages. For example, the process may be very expensive and ultimately can consume between 4 percent and 10 percent of the total gross estate in administrative fees.
According to several studies on the subject of probate, the average duration of the probate process is 12-18 months, during which time all the estate's assets are frozen and administered by the court. And, if a will is contested (as with approximately 35 percent of probate cases), the time and cost the probate takes to process can more than double.
Visit Free Living Trust Information for all your information needs on Living Trust.
The probate process can be used to validate a will, transfer property, ensure that all debts are paid (including probate and legal fees), and change the name of titled assets from the decedent to the heirs. Probate does have its purpose; however, this process also has some significant disadvantages. For example, the process may be very expensive and ultimately can consume between 4 percent and 10 percent of the total gross estate in administrative fees.
According to several studies on the subject of probate, the average duration of the probate process is 12-18 months, during which time all the estate's assets are frozen and administered by the court. And, if a will is contested (as with approximately 35 percent of probate cases), the time and cost the probate takes to process can more than double.
Visit Free Living Trust Information for all your information needs on Living Trust.
Monday, March 1, 2010
Choosing a Trustee for your Living Trust
Many people serve as trustees of their own living trusts until they become incompetent or die. Others decide they need assistance simply because they are too busy or too inexperienced or do not want to manage their day-to-day financial affairs.
Choosing the right trustee to act on your behalf is very important. Your trustee will have considerable authority and responsibility and will not be under direct court supervision.
You might choose a spouse, adult child, domestic partner, other relative, family friend, business associate, or professional fiduciary to be your trustee. The professional fiduciary could be a licensed, registered individual, or a bank or trust company licensed by the State of California. You may also name co-trustees.
Discuss your choice with an estate planning lawyer. There are many issues to consider. For example, would the appointment of one of your grown children cause a problem with his or her siblings? What conflicts of interest would be created if you name a spouse, child, business associate, or partner as your trustee? And will the person named as your successor trustee have the time, organizational ability and experience to do the job effectively?
Visit Free Living Trust Information for all your information needs on Living Trust.
Choosing the right trustee to act on your behalf is very important. Your trustee will have considerable authority and responsibility and will not be under direct court supervision.
You might choose a spouse, adult child, domestic partner, other relative, family friend, business associate, or professional fiduciary to be your trustee. The professional fiduciary could be a licensed, registered individual, or a bank or trust company licensed by the State of California. You may also name co-trustees.
Discuss your choice with an estate planning lawyer. There are many issues to consider. For example, would the appointment of one of your grown children cause a problem with his or her siblings? What conflicts of interest would be created if you name a spouse, child, business associate, or partner as your trustee? And will the person named as your successor trustee have the time, organizational ability and experience to do the job effectively?
Visit Free Living Trust Information for all your information needs on Living Trust.
Friday, February 19, 2010
Pros and Cons of a Living Trust
Pros
A living trust can help your estate avoid probate. This is a big advantage especially if your estate is large. Unlike a normal will, a living trust does not have to be probated. Upon your death, the assets in the living trust are held or transferred by your trustee according to the terms of the trust.
A living trust can keep your affairs private. When a will is probated it becomes part of the public record. Anyone can read it. Living trusts generally remain private ensuring the privacy of the living trust and lessens the likelihood of litigation.
A living trust offers flexibility. You can easily change a living trust during your life as circumstances warrant. Changing a will requires more formality and following certain procedures to make a change.
A living trust can be used to avoid guardianship proceedings. If you become disabled, your trustee can manage your assets and financial affairs for you while you are disabled. Without a living trust, your loved ones would have to initiate guardianship proceedings in court and get a judge to give them the ability to act for you.
Cons
A living trust is useless unless your assets are formally transferred to the trust. So, all the advantages above disappear if you have not funded the trust. Getting your assets transferred to the living trust takes time and usually there is at least some expense.
In addition to the costs of funding the living trust, there is also the initial cost to have an attorney prepare it. Generally it will cost more to have an attorney prepare a living trust than it would to have the attorney prepare a simple will.
Visit Free Living Trust Information for all your information needs on Living Trust.
A living trust can help your estate avoid probate. This is a big advantage especially if your estate is large. Unlike a normal will, a living trust does not have to be probated. Upon your death, the assets in the living trust are held or transferred by your trustee according to the terms of the trust.
A living trust can keep your affairs private. When a will is probated it becomes part of the public record. Anyone can read it. Living trusts generally remain private ensuring the privacy of the living trust and lessens the likelihood of litigation.
A living trust offers flexibility. You can easily change a living trust during your life as circumstances warrant. Changing a will requires more formality and following certain procedures to make a change.
A living trust can be used to avoid guardianship proceedings. If you become disabled, your trustee can manage your assets and financial affairs for you while you are disabled. Without a living trust, your loved ones would have to initiate guardianship proceedings in court and get a judge to give them the ability to act for you.
Cons
A living trust is useless unless your assets are formally transferred to the trust. So, all the advantages above disappear if you have not funded the trust. Getting your assets transferred to the living trust takes time and usually there is at least some expense.
In addition to the costs of funding the living trust, there is also the initial cost to have an attorney prepare it. Generally it will cost more to have an attorney prepare a living trust than it would to have the attorney prepare a simple will.
Visit Free Living Trust Information for all your information needs on Living Trust.
Saturday, February 13, 2010
Tips for Seniors on Avoiding Living Trust Scams
Many seniors worry about what will happen to their property and assets after they pass away. Setting up wills and trusts can seem like a daunting task, and while some unscrupulous companies and individuals may try to take advantage of unwary seniors, there are plenty of resources when it comes time to set up a will or trust.
Try to stick to the facts and be wary of the exaggerated and often outrageous claims that living trust companies make about their products. Claims to look out for include:
• False Claims About the Probate Process.
Many companies try to convince seniors that the probate process is always long and costly and that everyone's estate will be subject to probate. These companies are usually exaggerating the costs and hassles of probate and you may be able to avoid probate in other ways.
• False Claims About Tax Benefits.
Many companies advertise the tax benefits of living trusts. The truth is that a simple living trust (as opposed to a more expensive and complicated tax-saving living trust) has no effect on taxes.
• False Claims That Living Trusts Will Shelter You From Creditors.
A living trust will not automatically protect your assets and property from creditors.
• False Claims About the Cost of Setting Up A Living Trust.
Living trusts can be expensive. Lawyers often charge five or six times the cost of a will. Depending on the size of your estate, the costs of a living trust may be much higher than the cost of probate.
• False Claims About How Much Time it Takes to Set Up A Living Trust.
It can take a lot of time to set up a trust properly. Most important, writing up the document is not enough. The trust will not be valid until property is transferred from your name to the trust. This is called “funding the trust.”
• False Claims That You Don’t Need a Will If You Have A Living Trust.
Even if you decide to buy a living trust, it is still a good idea to have a will as a back-up.
Visit Free Living Trust Information for all your information needs on Living Trust.
Try to stick to the facts and be wary of the exaggerated and often outrageous claims that living trust companies make about their products. Claims to look out for include:
• False Claims About the Probate Process.
Many companies try to convince seniors that the probate process is always long and costly and that everyone's estate will be subject to probate. These companies are usually exaggerating the costs and hassles of probate and you may be able to avoid probate in other ways.
• False Claims About Tax Benefits.
Many companies advertise the tax benefits of living trusts. The truth is that a simple living trust (as opposed to a more expensive and complicated tax-saving living trust) has no effect on taxes.
• False Claims That Living Trusts Will Shelter You From Creditors.
A living trust will not automatically protect your assets and property from creditors.
• False Claims About the Cost of Setting Up A Living Trust.
Living trusts can be expensive. Lawyers often charge five or six times the cost of a will. Depending on the size of your estate, the costs of a living trust may be much higher than the cost of probate.
• False Claims About How Much Time it Takes to Set Up A Living Trust.
It can take a lot of time to set up a trust properly. Most important, writing up the document is not enough. The trust will not be valid until property is transferred from your name to the trust. This is called “funding the trust.”
• False Claims That You Don’t Need a Will If You Have A Living Trust.
Even if you decide to buy a living trust, it is still a good idea to have a will as a back-up.
Visit Free Living Trust Information for all your information needs on Living Trust.
Sunday, February 7, 2010
Living Trust and Will Differences
Living trusts and wills are two separate things, and one does not replace the other. Both are important documents to have to ensure that your wishes are carried out in the event of your incapacitation or death. Living trusts are sometimes included with wills and power of attorney documents. Trusts are essentially boxes for holding assets during and/or after your lifetime, while a will directs where your assets and belongings will be distributed after your passing.
Important Differences:
* The Effective date: A living trust takes effect while you are alive. A will takes effect after you pass.
* Providing Direction before Death: Living trusts can make management of an estate during an incapacitation easier than power of attorneys alone. If an asset is in a trust, financial institutions such as banks must recognize your successor trustees during an incapacitation. Institutions are not required to accept powers of attorneys.
* Privacy: Wills are made public during the probate process. Living trusts are private documents and in many states are not recorded.
* Probate: Assets with listed beneficiaries (life insurance, IRA's, beneficiary deeds, etc) and assets in a living trust avoid probate. Probate is a court process to validate a will and ensure its instructions are followed during the transition of an estate. Probate's cost and length differ in each state.
* Provisions for Care of Children: Wills name guardians for children while living trusts do not, however, trusts can appoint someone different than the guardian to manage a beneficiary's assets until they are older and fiscally responsible.
* Contesting: If someone contests the estate, living trusts are often better equipped to handle the contest.
* Taxes: Living trusts can minimize estate taxes for married couples by doubling estate tax exemptions. A will by itself can not double exemptions.
Visit Free Living Trust Information for all your information needs on Living Trust.
Important Differences:
* The Effective date: A living trust takes effect while you are alive. A will takes effect after you pass.
* Providing Direction before Death: Living trusts can make management of an estate during an incapacitation easier than power of attorneys alone. If an asset is in a trust, financial institutions such as banks must recognize your successor trustees during an incapacitation. Institutions are not required to accept powers of attorneys.
* Privacy: Wills are made public during the probate process. Living trusts are private documents and in many states are not recorded.
* Probate: Assets with listed beneficiaries (life insurance, IRA's, beneficiary deeds, etc) and assets in a living trust avoid probate. Probate is a court process to validate a will and ensure its instructions are followed during the transition of an estate. Probate's cost and length differ in each state.
* Provisions for Care of Children: Wills name guardians for children while living trusts do not, however, trusts can appoint someone different than the guardian to manage a beneficiary's assets until they are older and fiscally responsible.
* Contesting: If someone contests the estate, living trusts are often better equipped to handle the contest.
* Taxes: Living trusts can minimize estate taxes for married couples by doubling estate tax exemptions. A will by itself can not double exemptions.
Visit Free Living Trust Information for all your information needs on Living Trust.
Wednesday, January 27, 2010
Farrah Fawcett's Living Trust is Suing Documentary Producer
I came across a recent article regarding the late great Farrah Fawcett about a current lawsuit going on that stemmed from her living trust. It should be interesting reading to see how this all plays out in a court of law and how her Living Trust will play into it. Here is the article I am referencing:
Farrah Fawcett's Living Trust is Suing Documentary Producer
Jeffrey Sullivan
1/23/2010
According to Access Hollywood, court papers filed in Los Angeles County Superior Court on Friday, Richard B. Francis, trustee of the Living Trust Fund for the late Fawcett, is suing executive producer Craig J. Nevius for embezzlement.
According to Francis, Nevius was rejected his cut of Fawcett's documentary, “Farrah's Story”, and the producer position was given to her longtime love, Ryan O'Neal. After that happened, Nevius allegedly embezzled hundreds of thousands of dollars.
Nevius responded today, denying any wrongdoing, saying that while he could prove his innocence in the court of public opinion, he will instead do it in a court of law, beating this "press release disguised as a lawsuit."
The documentary was a chronicle of Fawcett's battle with cancer and aired on NBC in 2009. Nevius says that footage, not yet released to the public, will allow Fawcett to defend him in her own words and actions.
Visit Free Living Trust Information for all your information needs on Living Trust.
Farrah Fawcett's Living Trust is Suing Documentary Producer
Jeffrey Sullivan
1/23/2010
According to Access Hollywood, court papers filed in Los Angeles County Superior Court on Friday, Richard B. Francis, trustee of the Living Trust Fund for the late Fawcett, is suing executive producer Craig J. Nevius for embezzlement.
According to Francis, Nevius was rejected his cut of Fawcett's documentary, “Farrah's Story”, and the producer position was given to her longtime love, Ryan O'Neal. After that happened, Nevius allegedly embezzled hundreds of thousands of dollars.
Nevius responded today, denying any wrongdoing, saying that while he could prove his innocence in the court of public opinion, he will instead do it in a court of law, beating this "press release disguised as a lawsuit."
The documentary was a chronicle of Fawcett's battle with cancer and aired on NBC in 2009. Nevius says that footage, not yet released to the public, will allow Fawcett to defend him in her own words and actions.
Visit Free Living Trust Information for all your information needs on Living Trust.
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