Estate Planning And Real Estate

There are many reasons people don’t plan for the one certainty in life – Death. Some people would rather not think about grim thoughts; others could care less about planning and what happens after they are gone. And many people just rest upon false premises that of course their prized possessions would pass on to their loved ones without doubts.

A judge would disrespectfully disagree with those statements and you may be leaving behind one big mess.

• Martin Luther King Jr

• Howard Hughes

• Jayne Mansfield

• Sonny Bono

• Rita Hayworth

• John Denver

All of the people mentioned above died without leaving a will. The civil rights leader, Dr Martin Luther King Jr died without leaving a will and his estate became the jurisdiction of Georgia. Sure, everyone knew he was married to Coretta Scott King and had four children; however, the widow needed to post a bond in the amount of $20,000 for Dr King’s estate. If Dr King had done some estate planning and prepared a Will, it could have expressly stated that the executor, Mrs. King, need not post any bond.

Probate-avoidance isn’t complicated; you simply create a revocable living trust. The trust document names people you want to inherit each item of property. One significant advantage of a living trust is that you can name alternate beneficiaries – people who will inherit if your first choice does not survive you. You can even name alternatives for each of your alternatives.

You name a trustee, the same as if you were to name an executor to carry out your wishes upon your death. The trustee is in charge of keeping complete control of all the property and transferring to family, friends or whomever you named as the beneficiaries; and it’s handled all at no cost. So in the end, say you left your real estate to your eldest son, James Jr., the trustee can simply sign a deed transferring the property to James Jr.

Living trusts are the most flexible way to avoid probate. If there is a challenge to your living trust, it’s extremely difficult to attack. The person challenging your trusts would have to prove your signature was forged or influenced by someone else because you were incompetent at the time.

Setting up a valid living trust isn’t difficult; many do-it-yourself kits are available and you can get it notarized and witnessed to prove your frame of mind. For real estate purposes, a living trust is a wise strategy to avoid court.