I frequently get questions from my clients about how to avoid probate by retitling property. If your desire is to avoid probate, a properly funded revocable trust can do that. However, certain types of property ownership can also avoid probate. There are three categories of property ownership – property titled in your name, in joint names with others, or by contract. Below is a summary of each type of property ownership and whether or not you can use it to avoid probate. Click here to learn more about avoiding probate
Is Your Property Titled to Avoid Probate?
May 17th, 2010 by Nicole K. White
Bond – Estate Planning Term of the Week
May 12th, 2010 by Nicole K. White
Bond – An insurance policy used to ensure a legal representative will do his/her job and not misuse or steal assets he/she controls. If a party is injured due to acts of the legal representative, the bond guarantees that a certain amount of money will be paid to that party.
Bequest – Estate Planning Term of the Week
Apr 15th, 2010 by Nicole K. White
Bequest – a gift or property, which is transferred to an heir or beneficiary under the terms of a will.
Estate Planning Myth #6
Apr 12th, 2010 by Nicole K. White
Myth: A Revocable Living Trust always avoids probate.
Fact: If you have a Revocable Living Trust and it is not properly funded, all assets titled in your name at the time of your death and not titled in the name of the trust will need to go through probate. To properly fund the trust and avoid probate, you should retitle your assets such as bank accounts and real estate in the name of the trust, and you should update beneficiary designations of life insurance policies and retirement accounts.
Beneficiary – Estate Planning Term of the Week
Apr 7th, 2010 by Nicole K. White
Beneficiary – A person or organization who will receive the benefits of property from an estate or trust.
Estate Planning Myth #5
Apr 5th, 2010 by Nicole K. White
Myth: A Revocable Trust Can Protect Your Assets From Lawsuits
Fact: There are a couple of reasons why a Revocable Living Trust will not protect your assets from lawsuits: (1) You have the ability to change the terms of the trust when ever you want and you have the ability to add assets to the trust and to remove assets from the trust (i.e., you have total control over the assests), and (2) Although the assets in the trust are titled in the name of the trust, you still personally own the assets.
Therefore, a Revocable Living Trust cannot shield your assets from lawsuits or the claims of creditors. If you are interested in Asset Protection Planning, you should seek the services of an estate planning attorney to discuss creating a comprehensive asset protection plan.
Basis – Estate Planning Term of the Week
Mar 31st, 2010 by Nicole K. White
The dollar amount paid for an asset. This amount is subtracted from the sales price of the asset when it is sold to determine capital gains and capital losses for tax purposes.
Estate Planning Myth #4
Mar 29th, 2010 by Nicole K. White
MYTH: Estate planning is only for the wealthy.
FACT: This is one of the most common estate planning myths. There are many other factors or objectives other than wealth that you should consider. For example, if you desire to do any one of the following, then you need a comprehensive estate plan:
(1) providing for and caring for a minor or disabled child;
(2)providing for or caring for a surviving spouse;
(3) transferring ownership of property and assets in accordance with your wishes;
(4) avoiding probate;
(5) transferring closely held business interests
(6) transferring ownership of property in another state;
(7) charitable giving; and
(8) avoiding taxes.
These are some of the reasons you should consider to plan your estate. Everyone has their own objectives, but the size or value of your estate is not the only reason to plan.
How Fraud Alerts Can Protect Your Credit
Mar 26th, 2010 by Nicole K. White
If you have been or fear you could be a victim of identity theft, you should put a fraud alert on your credit report to help prevent further damage to your identity and credit.
What is a Fraud Alert?
Placing a fraud alert on your credit report notifies anyone who pulls your credit report that your personal information has been stolen or compromised. A fraud alert means that extra steps should be taken to verify your identity when a business checks your credit before opening a new account in your name.
Attorney in Fact – Estate Planning Term of the Week
Mar 24th, 2010 by Nicole K. White
Attorney in Fact - The person named as agent in a power of attorney to handle the financial affairs of another.