What is Probate?
November 6, 2007 | Leave a Comment
When you die, the assets you own or have an interest in are “stuck,” unless you own them as tenant-in-common with someone else or you have a “pay-on-death” or “transfer-on-death” designation. Probate is a court supervised process of ensuring that to the various assets is passed to your beneficiary(ies) according to the “closeness” of your relative(s), according to the state laws where you died in. If you left no Will (an “intestate estate), a separate probate proceeding will need to take place in each state where there are assets.
Advantages of Creating a Living Trust
November 4, 2007 | Leave a Comment
What are the advantages of creating a Living Trust? Depending on your family circumstances, the size and composition of your estate, and your goals, many advantages exist for creating a Living Trust. These advantages include the following: You want to avoid probate. Since the property is no longer in your name as an individual, but is now in your name as trustee, there is no reason to go through probate. This is a savings of 5%-10% of your gross estate. An additional benefit is that it will only take weeks instead of years to transfer your property to your heirs.
The trust will remain private. Unlike a will, which has to be filed as a public record in the probate court, the trust remains a private document even after your death.With certain provision in the trust, you can completely avoid or reduce estate taxes. This can mean savings of literally thousands of dollars.
You avoid the potential of a guardianship hearing because you have already named someone to take your place if you are unable to handle your affairs. In addition, you can set up your trust to allow your family Doctor to make the decision of whether you can handle your own affairs. The alternative is to allow a judge to do this in a public hearing.If your heirs are too young or immature to handle the money you will leave them when you die, you can use a trust to determine when they will receive the money and how much they will receive each time. For example, you can leave instructions that say, when my child reaches 30, he gets 1/3 of the property. When he reaches 35, he gets another 2/3. And when he reaches 40, he would receive the final 1/3, or the remaining balance of the estate.
The trust is less open to attack than a will. This means that your wishes have a better chance of being carried out.In the context of a second marriage, the trust is an excellent way to protect both the surviving spouse and the children from your previous marriage.
If you have property in another state the trust will eliminate the probate in the other state. Transferring property through a trust allows your property to receive a stepped up basis. This could greatly reduce the amount of capital gains tax your heirs will pay.Setting your finances in order will give you peace of mind.
Welcome to Dan Dorsch’s Blog!
October 11, 2007 | Leave a Comment
October 11, 2007 … 1:16am! First post and on a day with an extremely powerful day number. The number 11 is the symbol of clenched fist, the symbol of strength. Bob Marley, Rasta prophet, died on May 11, 1981. His most famous stance is standing with a raised & closed fist, singing: “Get Up, Stand Up, Stand Up for Your Rights!”
Bob Marley left a huge estate, but he didn’t believe in estate planning, so his loved ones and business partners spent years in court. They may still be trying to figure it out.
This site is devoted to helping you avoid that type of situation … by having solid contracts and a plan for the future. So, come back soon, and look around.
I want to take this opportunity to thank Dan for asking me to help with this project. It’s been fun, and I know it’s going to be productive!
Lynn Roberts, writing on Dan Dorsch’s blog, over & out, 242 am.