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REVOCABLE LIVING TRUST
For the sake of your family you must consider preparing a revocable living trust for the following reasons.
1.) All assets in the trust remain under your control until you die. With the trust, as far as you are concerned on a day-to-day basis, nothing changes. The change occurs for your heirs when you die.
2.) Out-of-state assets will not need to be probated in each state where they are located when they are in the trust.
3.) All assets in a trust avoid probate! Why is this important?
a- Attorneys cost money, a lot of money. This means a share
of your estate will go to the attorney. Attorneys in most states can charge as much as they want and that charge can be 10% of the total estate size or more, much more. We have seen estates where the attorney was the largest heir.
b- All estates, with or without a will, go through probate. Only
estates with a trust can avoid probate, period!! We have seen many wills in the probate court that state “This will is not to go through probate!”. Since we found the wills in the probate court files, they went through probate.
c- This probate process takes a lot of time. This means your
heirs will not receive your estate at your death, but much later, sometimes as much as years later. We have seen estates in probate for over 20 years!
d- The probate process is degrading to the heirs. They must
answer to the attorney they have hired regarding your most personal assets.
e- The probate process is a public process. I can go to the
Probate court and find out anything I want to know about your estate and who is inheriting what assets. Do you want this information to be public knowledge?
f- Appraisers must be hired to place a value on your assets
(home, cars, clothing, jewelry, etc.). These people cost money. Again, less for your heirs!
g- Heirs get into squabbles over estate items and what should
be done with them. Your job is to see that the family stays together and doesn’t fight. With the proper use of a living trust you can stop the potential squabbling and see that your heirs receive the entire estate!
4.) All assets in a trust up to $1,350,000.00 will be protected from Federal Estate Taxes for a married couple. The savings to your heirs could be in excess of $250,000.00. This is substantial! I don’t think you worked all your life so the government could tax you again just because you died. In case you don’t know, all life insurance is Federal Estate Taxable (unless in an irrevocable life insurance trust).
5. ) The trust gets your estate organized and is specific about how you
want your estate divided and how your want your heirs to inherit.
6.) The trust can be done in any state and is valid in all states.
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