Living Trusts: Carrying Out Our Wishes

Who will get our assets when we're done with them? Careful estate planning can protect our loved ones and insure that our wishes will be carried out.  

Estate planning includes cash management, tax analysis and preparation of legal documents to minimize taxes, expenses and inconvenience for our beneficiaries.

You may execute a will, to direct disposition of your estate, appoint a personal representative and nominate a guardian of your children's person and property.  Disposition by will usually requires a court-supervised probate, which includes evaluating assets, paying creditors' claims, preparing an accounting and an order for distribution. Probate takes eight months or more and may cost thousands of dollars.

To avoid probate, consider a revocable living trust.  A well-drafted and properly funded living trust:

* appoints your representative
* informs your family of your wishes and instructions;
* avoids probate;
* may save up to more than a quarter million dollars of estate taxes and probate fees;
* assures continuity of management of your assets; and
* permits prompt, inexpensive transfer of your assets to your beneficiaries.

What  documents are best for you? Your attorney and your tax professional are in the best position to help you decide. In any case, don't procrastinate. Do your estate planning while you can. Sudden illness, accidents and earthquakes happen.

A word of caution: Have your will or trust prepared by an attorney experienced in estate planning.  The consequences of poor or imprecise drafting are potentially devastating to your loved ones.  Even basic estate planning is too important to entrust to an amateur or to "standard" forms that were not created with you, especially, in mind.

Jerry Kessler  practices law in the Santa Clarita Valley, emphasizing estate planning & business law.  You may call him at (661) 255-1001, for a free half-hour consultation concerning the preparation of a living trust and other estate planning documents.

Copyright © 1998 by Jerry Kessler