Family Living Trusts

Family Control and Peace
When someone dies while owning valuable assets, a lack of absolute assurance regarding their desires for administration and distribution of those assets can destroy a family. A Family Revocable Living Trust and Pour-Over Will are the tools created to deal with this situation.

When someone becomes incompetent, it is vital to family harmony that there be no doubt as to who has the authority to handle that person’s financial and health care situations. A Family Revocable Living Trust, Advance Health Care Directive and Durable Power of Attorney for Assets provide that family harmony.

When parents die or become incompetent while their minor or disabled child still requires a legal Guardian, schools, health care providers, etc. need to know who to turn to. An Appointment of Guardian, working in conjunction with the Family Trust and other documents leaves no doubt as to who has the authority to care for the child.

The Federal Estate Tax
If, after a lifetime of working and planning responsibly, paying your "fair share" of state taxes, local taxes, federal income taxes, property taxes, capital gains taxes, sales taxes, etc., etc., at your death you have managed to hang onto more than the amount specified by the Feds, they will say to you (after you are dead!), "We require more tax." Maybe a lot of it, too. This will reduce the proceeds to your heirs, creating a tax situation they will have to deal with, even though it is YOU (the deceased!) who owes the tax. The tax is due and payable IN CASH within nine months after death. Homes, real estate, farms and/or businesses that may have been in a family for generations are commonly sold or dismantled to come up with the cash. Ten to seventy percent of a deceased person's assets can be siphoned off by probate fees, federal estate taxes, state inheritance taxes, and other costs!

As a result of the Economic Growth and Tax Relief Reconciliation Act of 2001, the amount that is exempt from the estate tax will gradually increase and the top tax rate will gradually decrease in coming years. The I.R.S. will consider the current and future value of your retirement plans, your home, any life insurance (yes, your life insurance death benefit can be subject to the estate tax!) you might own, and any other savings or investments you've accumulated.

Oh, yeah -- there is also the possibility that your state has its own tax.

Probate
Even if you do not have enough assets to trigger a federal estate tax bill, one of the biggest advantages of a Revocable Living Trust is that it can be used to avoid probate, frequently a longer and more costly process than some persons would have you believe. When you leave everything to your family in a will, your estate will generally go through probate (too often an agonizing experience for your family).

If a lawyer offers to prepare a "Testamentary Trust" for you, look for “triple dipping.” He/she will get paid for the will, paid a second time for the Trust and paid a third time for the probate, because such a trust is funded only AFTER your estate has been probated. Subsequently, anyone can learn the amount of assets and property you left and to whom. This public information can be used to target your heirs for anything from legitimate charitable donation requests to questionable investment schemes.

Even when your assets are held in joint tenancy, your estate will go through probate upon the death of the last joint tenant if assets are to be re-titled. If your attorney or CPA tells you that your estate (in the absence of a Living Trust) will not have to go through probate or gives you a specific probate cost, ask him or her to put it in writing.

Passing assets and property through an appropriately designed Living Trust and related documents is a perfectly legal method for the purpose of helping protect your family’s privacy, simplifying the process of estate settlement and increasing the inheritance by eliminating probate costs, high attorney fees and minimizing taxes.

For more on probate, check out the excellent websites ca-trusts.com and McKee Estate Services.

We will work with you and a local specializing attorney to devise the strategy for your individual estate.

You need to make that decision after getting opinions from experts you trust. These may include your tax preparer/accountant, your attorney, your financial advisor, your insurance agent/broker, your know-it-all brother-in-law or any combination of them.

What you DON’T want to do is ask anyone who sells anything if you need what they sell. What do you expect the answer to be?????

For your consideration, here are the opinions of some financial authors. They are not recommending or endorsing any Trust provider, including us. I am simply sharing their opinions.

Making the Most of Your Money - Jane Bryant Quinn
“Why you might want a living trust:

• To have someone reliable to handle your money if you are incapacitated *To avoid probate
• To defend against relatives who might challenge your will
• To handle real properties out of state
• To simplify the process of leaving money to young children
• To keep matters private."

The 9 Steps to Financial Freedom - Suze Orman
“If you own property or other assets, have children, or care about what happens to the people you love after you’re gone, I urge you to look into a Trust. When? As soon as possible.”

Complete Book of Dollars and Sense - Kathy M. Cristof
“If you want to avoid probate, there are a few ways to do it. Living Trusts are, by far, the most popular option, partly because they allow you to handle all assets in a single way, and partly because they do a bit more than just distribute your stuff when you die. They also help you handle possible incapacity.”

Smart Guide to Managing Personal Finance - Alfred & Emily Glossbrenner
“A Trust is the only device that can be used with all types of property and does not depend upon the survival of specific persons to avoid probate.”

If You’re Clueless about Financial Planning and Want to Know More - Seth Godin & John Parmelee
“Trusts are not just for the richest of the richest. In fact, many people in different financial situations can benefit from a Trust. There are several key advantages.

• First, Trusts enable you to give your heirs money while still maintaining some control over how it’s used.
• Also, you can use the Trust to disburse assets to minor children, dependents or other family members who just don’t have enough financial savvy to manage the assets on their own.
• Trusts can also be used to manage your own assets should you ever become unable to take care of your finances yourself.
• What you have in Trust is private and not a matter of public record.
• Trusts can also reduce or provide for payment of estate taxes.”

The Truth About Money - Ric Edelman
“A revocable trust has many advantages. Through it:

• Your estate avoids probate
• You distribute assets as you wish
• Your decisions are not public
• You make it harder for disgruntled heirs to complain.”

Invest in Your Self - 6 Secrets to a Rich Life - Marc Eisenson; Gerri Detweiler; Nancy Castleman
“Trust advantages:

• Avoids probate, saves time, money, and hassle. A trust is especially useful if you have property in more than one state.
• The courts won’t freeze your assets for months, maybe years.
• You retain complete control of your property while you’re alive.
• Your trust can be changed or terminated at any time.
• You can structure your Trust to allow for uninterrupted business or asset management during illness or incapacity.
• Your privacy will be protected.”

Ernst & Young’s Personal Financial Planning Guide - 2nd Edition
“Advantages of Revocable Trusts

• Avoiding probate and ancillary administration
• Avoiding legal guardianship
• Relief from financial responsibility.”

Dr. Tightwad’s Money-Smart Kids - Janet Bodnar
“Naming guardians of the person and property is a great beginning but if your children inherit assets outright, the property guardian will still be subject to court supervision until the kids reach 18. Avoid these hassles by setting up a trust to be the beneficiary of any property you leave to your kids, including the proceeds of life insurance policies. Don’t make the mistake of thinking that Trusts are only for rich people.”

Every Woman’s Guide to Financial Security - Ann Z. Peterson; Stephen M. Rosenberg, CFP
“The best way to protect your minor children’s inheritance is through the use of a Trust. It avoids probate, cares for you if you become disabled and is difficult to contest.”

Money Clips - 365 Money Tips That Will Pay One Day at a Time - Lorraine Spurge
“Tip #347 - Do your will. Now!
“Tip #348 - Even better, set up a Trust. Trusts aren’t just for rich people any more, and they can make life a heck of a lot easier for those you leave behind. The main reason is that a Trust can transfer all of your legal authority to another person in a way that a will can’t.”

8 Ways to Avoid Probate - Mary Randolph
“Other advantages of a living trust

• Protection from court challenges. Court challenges of living trusts are rare.
• Avoiding a conservatorship. A living trust can be extremely useful if you someday become incapable of taking care of your financial affairs. This feature of a living trust can be a god-send to family members.”

Inheritor’s Handbook: A Definitive Guide for Beneficiaries (As reported in Esquire Magazine, January 1999) - Dan Rottenberg
“The basic thing to do is to make sure your parents have a will. Also stress the importance of a living trust, ... so that, should they become incapacitated, there is someone (a co-trustee, such as you or a sibling) who can step in and manage their finances without a slow and expensive legal procedure.
“In addition to minimizing taxes, there are other good reasons to establish trusts: to create a common management for family assets; to protect children from creditors, judgments, and ex-spouses; and to give assets to charity...”

Pros and Cons according to MSN

A New, Potentially Significant Advantage of Trusts

Of course, there is the contrarian opinion, as expressed by Kiplinger.com
(If you want to know why they’re wrong, ask me.)

I recently had the following question from a very sweet lady I have known professionally for years:
She asked, “What is the next step down from getting a Trust for my family?”
This is the equivalent of asking her physician, when told her appendix is about to burst, “What is the next step down from an appendectomy?”
When getting and having a Trust is as simple as we make it, why would people try so hard to avoid it?

There have been those who have tried. They will use the wording of someone else’s Trust and try to adapt it to their situation and make it “sound legal.” But the question is – will all custodians (banks, credit unions, etc.) of the assets owned by the Trust accept the wording of the Trust after the creator of the Trust is deceased? If not, the assets will be stuck in an inaccessible account and attorneys or the courts will have to get involved to straighten out the mess.

In addition, who will be there for the family when the creator of the Trust dies? Who will explain proper procedures and current requirements for settling an estate?

One of my clients is an attorney.
I asked him, “As an attorney, why don’t you just make your own Trust?”
He responded, “I could, I have created Trusts for others, but I am contracting with The Estate Plan™ to assure that in the case of my death, someone will be there to assist my family.”

It’s not about just getting a document or even a set of documents. Your family needs a network of people who will help them now, in the future and at your death and do it COMPETENTLY! Sorry, didn’t mean to yell.

Well, there you indeed have some options. When using any of these, ask the following questions:

1. Can I call you over the years when questions arise?

2. Can I call you when I need to amend the Trust or other documents?

3. When a death occurs, can my family call you to assist them with settlement?

4. Will you monitor the state and federal law and I.R.S. rulings / letters and notify me immediately if any changes in them affect me?

or better yet, print the Consumer’s Information Guide for Trusts which I wrote to help those who just have to shop.

Your Living Trust Source Options
1) Your local attorney.
Here’s a conversation I had recently with a woman locking the door of an attorney’s office in our office complex at the end of the business day:
BobSaid – “What type of law is practiced by this office?”
SheSaid – “Personal injury, worker compensation... and, oh, yeah, wills and trusts.”
Terrifying.
Your local attorney may be a viable source if they can properly answer these questions, which should be asked of any potential Trust provider.
"What is your specialty?"
If it is not Trusts, think again.
"How many trusts have you prepared?"
If they just started, think again.
"May I see a John Doe sample of the documents?"
If “No,” think again.
"If I have questions any time prior to my death, may I call you – for free?"
"What will you charge if I need to make amendments later?"
"What will you charge to assist my family at the time of my death?"
If based on the value of the estate, think again!
"At the time of your (the attorney’s) death, who will take over your trust clients?"
There should be no hesitation.
"Will you notify us automatically and immediately if changes to federal or state law or I.R.S. rulings affect my family?"

2) THE INTERNET (no, I’m not kidding – people actually get their Trusts from the INTERNET!)

• Here’s one – Only $150!
• Here’s another Only $60.00 (unless there’s a half-price sale)!!
• Suze Orman will sell you a do-it-yourself kit for $18-$30!!!
  (Be very sure you consider the caveat provided in the kit!)
• And there are many more – it’s the Internet, for crying out loud!
• You may even be able to buy a do-it-yourself kit at your local office supply or book store.

3) THE SEMINAR-IANS
You probably constantly find announcements in your local newspaper about Trust seminars.
You may even get a free meal...
And a discount for buying at the seminar...
And special stuff not available otherwise.
Read the last line of the advertisement. There, in the smallest print on the page, you may find the most telling information on the page –
“Your Documents Will Be Delivered by a Licensed Insurance/Investment Advisor.”
Come on – what do you think they REALLY want to sell?
A Warning from The California Association for Nursing Home Reform (CANHR.org):

And another from The Attorney General of California

And another from the California Department of Insurance (see the end of page 2)

4 ) OR there is The Estate Plan™ and
W.R. Marlowe Living Trust Advisory Services.

The Estate Plan™, Henry Abts national Trust corporation, has been the nationally recognized leader in providing the most comprehensive Living Trust for the past quarter of a century. This properly written and supported Living Trust is a simple, inexpensive way to eliminate the costs and delays of probate and ensure that your loved ones will receive their inheritance promptly and exactly as you intended. It also allows you to plan for your own incapacity and for avoiding competency hearings.

Mr. Abts is also the author of these nationally best-selling books on Living Trusts and how to settle them. The Estate Plan™ is the only authorized distribution source of the powerful, perfected, and time-tested documents described in these books.

Over 25 years of document preparation are behind The Estate Plan™ Universal Living Trust™ documents; over 50,000 trusts have been prepared; over 5,000 estates have been settled without complications. The Estate Plan™ is the industry leader for Living Trusts and superior estate planning documents.
As your local independent distributor for The Estate Plan™, I provide the highest quality products and service second to none to my clients. I pledge to you the following:

I will not attempt to sell you an annuity.

I do not want your investment business.

And this will not happen.

I will treat you as I would treat a beloved member of my own family.
I have been through this with my family.
I have clients who have lost loved ones and I have had the privilege of assisting them at the hardest times of their lives.

If you believe that a Trust is appropriate for your family, print and fill out these one or two pages and call me.

My name is Bob.  I can help.

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W.R. Marlowe 17772 Irvine Blvd. Suite 102 Tustin , CA 92780 1-800-400-4262

The Estate Plan 1140 Financial Blvd. Reno, NV 89502 1-800-292-0223