[Sca-cooks] A small OT lecture from Auntie 'Lainie

[Mark Hendershott]

I'll seond most of what Bear said.  However, not everone needs a 
trust.  This is a decision to be made based on
individual circumstances and what jurisdiction you live in.  Probate isn't 
always necessary.  Here in Oregon we have a small estate
procedure which applies for a lot of folks I see.  I recently had to do a 
similar procedure for a family with
Wyoming connections.  Other states may have similar laws.

I don't get a flat fee of 15% for probates either (I wish).  I have to keep 
track of time and have the bill approved
by the probate court.  A well planned estate makes low billable 
hours.  Leave things in a big mess and
I profit.  I should also caution that I have seen many people who were sold 
unnecessary and high cost trust
setups.  Shop around.

Simon Sinneghe
Briaroak, Summits, An Tir


At 08:55 AM 12/21/2003 -0600, Bear wrote:
>Most people can actually use four documents.  The Advance Medical Directive
>(medical power of attorney), a Durable Power of Attorney, a Last Will and
>Testament and a Grantor Trust.  All of these can be assembled from
>boilerplate, if you understand the legal and tax implications of the
>phrasing, which is time consuming but not particularly difficult.
>
>The Advance Medical Directive states how you want your medical treatment to
>be conducted and appoints an agent (attorney-in-fact) to act in your behalf
>if you are unable to direct your care.  In most cases, the Advance Medical
>Directive will supersede the desires of any family member, but your agent
>must have a signed, witnessed, and notarized original copy to present to the
>hospital staff before they can act on your behalf.
>
>The Durable Power of Attorney provides for an agent to conduct your
>non-medical affairs if you are too incapacitated to do so yourself.
>
>The Will is for disposing of any property not held in the Trust after your
>death.  If you don't have a Trust, then all of your property is disposed of
>under the Will through probate.  I've been involved in a relatively simple
>probate for a year and a half now.  It is a pain.  My Will provides that any
>property held in my name is to be inherited by my Trust to be disposed of by
>my Successor Trustee.
>
>In some states, probate fees can be a real shock.  IIRC, in California, the
>lawyer handling the probate receives a flat 15% of the estate.  Which is a
>reason for using a Trust.  Whether or not one has a Trust, be sure to have a
>Will.
>
>The Grantor (or Revocable) Trust is a separate legal entity that is an
>extension of you.  Anything held in the name of the Trust can be distributed
>in accordance with the Trust document (contract) without passing through
>probate.  Income and estate taxes do apply.
>
>The primary drawback to a Trust is that trusts are very flexible tools and
>even a simple Trust has a lot of options, which can be confusing.  If one
>needs help drafting the Trust document, the process can be expensive
>(usually $1,000-3,000, but it can go higher).
>
>None of these documents will do any good unless there are properly signed,
>witnessed and notarized copies available to the people who need them.  One
>also needs to have the financial records, birth certificates, personal
>information, deeds, titles, etc. available for the executor or trustee of
>the estate.  Acting as the executor of a non-spousal estate, is a real
>eye-opener to the complexities of the death and estate process and to the
>necessity of estate planning for incapacitation and death.
>
>Bear
>
> >My small lecture is this: force yourself to sit down and think about what
> >you would want to happen if you were in an accident, seriously ill, or such
> >situation. What do you want to happen? What do you not want to happen? Sit
> >down with your family and loved ones and TELL THEM what you want. And then
> >put it in writing. It is fairly easy to put together a living will and a
> >medical power of attorney. Your doctor's office can tell you where to get
> >the papers.
> >
> >'Lainie
>
>
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