Realty411 Magazine A Spotlight on Charles and Lena Sells | Page 87
"Merger") and have full control
over its assets.
Living Trusts originated in the
16th century where English
landowners used trusts to
circumvent the redistribution of
their property by the King. The
King’s desire to oversee the
transfer of wealth upon the death
of landowners was the first form
of probate. Over the centuries
living trusts made their way
throughout the British colonies
and became firmly rooted in
American jurisprudence.
An object of primary concern
in estate planning is the avoidance
of probate. Probate is a court
procedure whereby upon your
death your assets are distributed
according to your will, or by state
law if you have no will. It is
important to note that “Testamentary
Trusts” and “Wills” instantly send
your estate into probate as the very
definition of probate means "prove
the Will". Only a properly drafted
living trust can keep your assets
from entering probate.
There are many advantages to
avoiding probate including the
unnecessary costs to your family
for attorneys, appraisers, real
estate agents, and independent
administrators. Probate is not a
private proceeding but rather a
public event where assets are often
frozen and prohibited from being
distributed without a court order.
The average estate takes 1.5 years
before the probate process is
finally over. And if your estate
contains real estate in multiple
jurisdictions ancillary probates are
held in each respective state
wherein the properties are located.
Should any problems arise,
extensive time delays may occur as
courts can extend probate for years
to resolve conflicts and disputes. If
probate can be avoided or
eliminated, all reasonable
measures should be taken to do so
with a living trust.
Living trusts can help almost
anyone with estates valued in
excess of $100,000 (as even
"smaller" estates are subject to
probate proceedings) by saving 3%
to 5% on on the value of the estate
in court costs and legal fees.
Living trusts also help welltodo
couples looking to maximize their
Unified Credit and can assist
individuals seeking to avoid court
appointed conservatorships. If you
have (minor) children, you will
surely want to appoint someone
through your living trust whom
you know and trust to raise your
children until such time as they are
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able to fend for themselves act in
a mature manner upon reaching
adulthood.
Our comprehensive revocable
living trust includes a section for
contacting immediate family,
friends and advisors, a document
locator, special power of attorney
for assets, general power of
attorney for property, durable
power of attorney for healthcare,
physicians directives, last will and
testament (ie. pourover will),
trust agreement, schedule “A”,
certificate of revocable living
trust, declaration of final
arrangements and all the
necessary supporting letters for
your financial institutions
including your banks, investment
accounts and brokerage firms. We
also have additional resources for
creating a "Special Needs Trust"
for beneficiaries who are mentally