April 24, 2010
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Walk into hornets nest, get stung.
Dear Mrs. Figgins:
Three months ago, my Uncle Freddie passed away. A month to the very day, Aunt June died.
The last couple of years, they talked quite a bit about their wishes, and made them clearly known to everyone. They always said they were going to make a trust, but unfortunately never got around to it.
Now they’re gone and suddenly their four kids don’t remember (or don’t give a flying hoot) about what their parents’ wanted. An all out war has broken out, and the family has been torn apart almost overnight.
My parents are sad, and I am mad. I realize that the word “family” is not all it’s cracked up to be.
This has taught me the importance of putting things on paper. Believing everyone will play nice at the end is foolhardy.
The fight has become a hornets’ nest, and I don’t know what to do? Do you?
Wanting to help!
Dear Wanting to Help:
If you see hornets and walk into their nest, you’re going to get stung.
Respectfully suggest an arbitrator – and then, stay out.
When money is involved in the “past tense”, trying to find out who’s naughty and who’s nice, is usually too late. This sensitive issue has been exacerbated by the fact that Uncle Freddie and Aunt June died intestate (without a will or trust”).
I am no legal expert; however a trust is always the smart way to go.
Wills or trusts are responsible tools in estate planning. The peace of mind is priceless.
Always seek professional advice. Nowadays, there are reputable online sites that help with such matters for a reasonable price.
Wills:
In the case of wills, (with no trust), distribution rules may vary from jurisdiction to jurisdiction and can be very complex.
In most instances, the spouse and/or the children of the deceased, are first to share in the estate.
Wills serve as a tool to appoint an executor overseeing your wishes. With a will you may designate a guardian for your children, as well as appoint a trustee to administer property.
A will does not avoid probate; however, it can reduce the cost of probate and the burden to your loved ones. Whether your property needs to go through probate is determined by how that property is titled, not whether you have a will.
Estate laws may change or differ depending on where you live.
Trusts:
While a trust may not always be necessary, there are many beneficial advantages to trusts.
A living trust is an alternative way to own property during your life and transfer property at your death.
Revocable living trusts are completely flexible with the distribution of the family’s assets. You will have all the present benefits of your assets without losing the ability to control them.
The terms are changeable, flexible, and can be drafted to suit your individual needs and family situation. Yes, you can change the terms at anytime.
The trust is funded with most (or all) of your assets by “re-titling” the assets to yourself as trustee.
The assets in the trust can be re-transferred to your name if desired, without adverse tax consequences. A living trust allows you to avoid probate.
Estate planning is a very smart move for an individual, couple or a family.
Mrs. Figgins
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