Living Trust Example

Ensure that the estate of a client does not pass through the approval is one of the main goals of estate planning. Why? Because probate costs money, takes time and can cause major aggravation.

First, here are some important terms in estate planning: Living Trust - a trust set up during the life of a person (in which the trust may be amended or revoked) to avoid approval.

Probate - the legal process by which the will is proved to be valid and enforceable (can be a lengthy and costly process).

Will - a legal document directing the disposition of assets in case of death.

Why is it important for an estate to avoid probate: In May 2008 American Bar Association Journal in a Chicago lawyer says: "Approval of Illinois is relatively painless, as there is no litigation associated with it. Estate needs only two court appearances, and decision making does not require court approval, until there is no dispute or disturbance heirs impede the administration of the estate. "It can easily be completely unexpected upset heirs impede the administration of the estate. And even just to pay the hourly rate for a lawyer for two court appearances and depositions different courts heirs can cost a lot of money .

Probate fees can take a big bite of a small area: the prosecutor and probate executor are fixed by law in some states, like California. Counsel for the estate in California will pay $ 13,000 for a small property of $ 500,000, what with the price of real estate in California is a small property. And if the executor does not waive the fee, he or she will also receive a sum of $ 13,000.

True, $ 26,000 in fees for an estate that could be just a small residence! Plus court filing fees, fees for the referee certification, the cost of certified copies and aggravation too much.

privacy issue - the approval is a public process: Another problem with certification is that it is a public process. A will is part of the records at the courthouse, and anyone who wants to read. If there is a controversial report be left a will, or if privacy is valued, approval should be avoided.

A living trust can solve these problems: What is necessary for the estate did not pass the legal hurdles of approval? A will is not enough to avoid probate. A living trust is necessary.

A living trust has the same instructions for the disposition of property that could be made in a will. But since the trust is a legal pre-existing, it continues after death. Therefore, the estate does not have to go through probate because there are no assets that must be "proven."

Pour-over will take care of all the assets not transferred to the trust, a will is always necessary if there are assets that have not been transferred to the trust. For example, the product of a wrongful death trial would be resumed by the will, because these products did not exist at the time the trust was created. The will "pay" it covers everything in the trust, which is why he is known as a pour-over "will.

The information above is that the considerations for you to discuss with your own domain planning attorney, the information is not legal advice. The supply of this material does not establish an attorney-client relationship.