Dispelling Common Myths About Living Trusts

Most people have a general idea of what a Last Will and Testament is and the purpose it serves. However, if you mention establishing a Living Trust, many people will look at you quizzically with no idea what you're referring to, or they'll mistakenly claim that a Living Trust is reserved for "rich people." This is not the case. In fact, there are many misconceptions surrounding Living Trusts. Below are some of the most common myths about Living Trusts and important facts you need to know. Myth No. 1 – I Don't Need a Trust Because I am Not Wealthy This is, by far, the most common misconception surrounding trusts – they are only worthwhile for people who are wealthy. Not so. The benefits of having a revocable living trust in an estate plan are plentiful and may actually wind up costing you less than the traditional Last Will and Testament. How?...

28 April

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How to Properly Establish a Living Trust

Posted by Bobby Feisee

in Bobby's Blog

One of the best estate planning tools you can utilize is a living trust. Establishing a trust allows your loved ones to avoid lengthy and complicated probate and may save your family money in administrative expenses and taxes. So how do you set up a living trust? The requirements of a trust to be considered legally valid include: You need to have the intent to create a trust. This is a fairly simple requirement to meet by stating your intent in the trust document. You need to have the testamentary capacity to create a trust. This means you need to have the mental capability to create and sign the trust document. Your trust must have a specific, legitimate purpose (e.g., for management of assets in your estate plan). The trust must convey some form of property. This means you cannot simply create a trust and it be barren. Future interests in property...

10 August

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There’s No Such Thing as a “Simple Will”

Posted by Bobby Feisee

in Bobby's Blog

I get this request, in some form or another, on a regular basis - “I want a simple will.” The client is thinking they have a relatively straightforward collection of assets and a “typical” family. Then they drop the proverbial bomb and reveal that they have a half-interest in a rental property based in Honolulu, natural gas interests in another state, and a general partnership worth somewhere between $100,000 and $5,000,000. They also divulge the fact that they have one child who is physically disabled and another child who has served jail time with two divorces under their belt. Clearly, a simple will is not going to be in the picture. And I make this determination in many instances when meeting with clients. Each individual’s estate is unique. It is important to look at all the complexities and nuances so your estate plan is detailed, thorough, and legally valid. When meeting with...

18 July

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Maintaining Control of Your Money From Beyond the Grave

Posted by Bobby Feisee

in Bobby's Blog

A funny story, found on littlethings.com, about a man and his money goes as follows: There was a man who worked all of his life and saved all of his money. He loved money more than just about anything, and just before he died, he said to his wife, “Now listen, when I die I want you to take all my money and place it in the casket with me. Because I want to take all my money to the afterlife.” So, he got his wife to promise him with all her heart that when he died she would put all the money in the casket with him. When one day he died. Just before the undertakers got ready to close the casket, the wife said, “Wait a minute!” She had a shoebox with her, she came over with the box and placed it in the casket. Then the undertakers locked...

06 May

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The Williams Family Feud – Lessons for Estate Planning

Posted by Bobby Feisee

in Bobby's Blog

Back in November 2014, I blogged about Robin Williams’ estate plan and his use of a living trust as a vehicle for distributing assets to his children. Unfortunately, despite what appears to be a thoughtfully crafted plan for who receives which assets, members of Williams’ immediate family have opted to litigate a dispute over his estate. The dispute focuses on an array of Mr. Williams’ personal items including his a tuxedo Mr. Williams wore, a promise ring, photographs and awards at his Tiburon, California home. The rivaling family members include Mr. Williams’ wife and three children from previous marriages. According to his estate plan, Mr. Williams passed on his Tiburon home to his wife. However, her attorney contends that the home should not be “stripped” of the things inside of it. On the other side, Mr. Williams' children argue that they are entitled to personal items, per the...

05 November

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No Will Hunting – Robin Williams Used a Living Trust

Posted by Bobby Feisee

in Bobby's Blog

Robin Williams made millions during his career and took steps to protect his wealth so it could be passed down to his three children. Did he just have a simple will based plan? No. Instead, reports indicate that Mr. Williams likely had a plan centered around a revocable living trust. Why would Williams, and other individuals, opt not to have a just a will based plan? First, the probate process can be very complicated and time consuming because it requires the estate be administered through the court system. Think about your experiences that involve the courts or the government in any way. Was it efficient? In our experience, we find it is more complicated and time consuming to have government involvement than having the estate administered privately by people that you hand pick. Revocable Living Trusts combined with properly titled assets can avoid the probate process and...

02 October

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Famous People and Estate Planning Disasters

Posted by Bobby Feisee

in Bobby's Blog

If you think all the well-to-do or celebrities have a magnificent estate plan in place, think again. Many wealthy individuals and famous people failed to properly organize and plan their estates. The result? Estate planning nightmares that lead to millions of dollars being gobbled up by Federal estate taxes, unnecessary legal fees, and lengthy court battles between family members. Below are three prime examples of missed opportunities, in terms of proper estate planning: Steve McNair Steve McNair was a successful NFL quarterback who died suddenly and unexpectedly. He did not have a will or any estate planning documents when he passed away. He left behind a wife and four children. An all too common problem is that two of his children were from a prior relationship. This can create conflict because an estate that is divided by the laws of intestacy are not concerned about fairness or equity. Intestacy laws are a...