Real Estate Planning – the Benefits of Peace Ideas
I have been practicing for more than 27 years only in the field of land planning. Yet, last week, a question raised by a young party seemed to resonate in my mind as never before. "What is the number one advantage of trust?" My mind started quickly in the 1980s City Slickers, when old crunchy cowboy Billy Crystal, the city's slicker, had to find "one thing" in her life, a motivation for a happy and successful life . This line pointed out that real estate development is "just one thing" like the movie, different for everybody. The real answer is the important cliché, "it depends". The purpose of this article is to list the most important factors that people should take into account. Finally, whatever it is "the only thing", you have to motivate you to take action and provide "peace" to your loved ones.
Avoiding Proof – This most important factor seems to be the most commonly mentioned, although I do not agree that this is the most important reason for the plan. The Arizona test is not as expensive and cumbersome as in some states such as California or New York. Yes, it costs money, but in most cases it's only a few thousand dollars. The severity of the certificate depends to a great extent on the composition of the devices. The more "complex assets" you have (eg lease, close family business, partnership, real estate market interest, etc.), and more states where you have real estate, then the "Probate Meter" quickly. If you own property in more than one state, you must be convinced in each state that you will need a lawyer in every state. But if your devices are "simple" (house, car, some CDs) and primarily in Arizona, then the "Probate Meter" is very low.
Tax Savings – People have read this sentence over and over in newspaper advertisements calling for state seminars by a "national expert" that no one has ever heard. But how does Trust help a saver? According to today's tax rules, the joint Revocable Trust does not save taxes for most people. First, the Trust does not save any income tax. The Trust is disregarded for income tax purposes and all proceeds generated by the Trust are given to the Trust Custom Executives as is customary. In addition, for a single person, the Trust does not exempt the property tax. But for a couple, the Trust can save property taxes. Most couples have Revocable Trust, which will become the first "A" and "B" trust on the death of their first spouse. The primary reason for this division is to guarantee that the couple will receive two exemptions from the property tax. Exception of trust B at the death of the first spouse and then a second exemption from trust A when the surviving spouse passes. Without A / B, it is possible to wipe out the immunity of the first spouse. But since federal real estate exemption is set to $ 5 million, most couples need only one exemption. So in the end, 95% of married couples who are trusted do not release property taxes. Well, that's true for the Revocable living trust. Do not confuse this 4 or 5 other "expert trusts" whose specific purpose is to save property taxes. Examples of a "special trust" would be an irrevocable life-assurance trust (designed to preserve life insurance from the inheritance system) and a Qualified Personal Resident Trust (designed to keep the primary and holiday home from the property tax system).
Restrictions and Incentives to Your Spouse – The well-formed Trust must include provisions on what happens to the death of the first spouse's property if the surviving spouse re-engages. Most clients provide your spouse with the right way, but do not want to provide the spouse's new husband or wife. Also, to what extent the surviving spouse changes the property plan after the death of the first spouse to disperse the children. My experience is that most spouses are reborn, and most of my time my new spouse has my children. We are now a "mixed family". Over time, the surviving spouse dreams about the love and loyalty of the new spouse, and possibly the new stepchildren. We are all likely to agree that the surviving spouse must be able to have what the donkey is interested in in relation to the property of the community. The harder question is whether the surviving spouse is able to control the ultimate order of the threatened spouse's community property half of the trust and the new spouse or the new stepchildren provide provisions for half of the trust offered by their spouses.
Limitations and Incentives for Children – The most important issue here concerns the timing in which a child should have free access to devices after the death of both parents. We would all agree that if a child is a minor, then the devices must be controlled and limited by an independent agent at the same time. What we disagree with is the age at which all restrictions and the independent agent should be removed. Some customers say they are 25 years old, some say 30, and many say 50 or 60. According to my experience, the older the customers are, the higher their age will be to gain control of their children. For example, if children are minors, most couples at the age of 30 lift the restriction. However, if the patient is much older and the children are older than 30 years, these couples can set age limits for the 40s or 45s. We also want to build some "incentives" for the real estate plan. The common incentive is that "if you are looking for money, trust will cost you another money". So, encourage a child to go out and live. Over the years, I have seen the devastation that is being bought for a "foundation baby". Money and inheritance will ruin the child and ruin life. That is why many rich people leave much of their wealth to their benevolence instead of their children (and yes, there are income tax benefits and tax benefits to accomplish this, but the primary reason would be to encourage the child to be encouraged to depend on a a child graduates at a university, or some other educational benchmark, I see the risk of trust as a "carrot" hanging out to a child to be manipulative But some well thought-out incentives can really take a long way to go Protecting Devices – For example, if an A / B Reliability can ascertain as aforesaid that the deceased spouse's assets are not part of the claims of the surviving spouse's claimants , as the company is therefore the A / B fund A / B trust can provide two immovable property exemptions. In the variable, the surviving spouse ends in a nursing home, which rapidly nettes the net worth. Thus, half of the property in trust "B" protected by the surviving spouse from creditors (ie their care costs) makes a lot of sense.
In addition, a good estate lawyer can build the inheritance for children and continue to trust in their lives. This protects the legacy from potential child creditors, such as divorce, bankruptcy, litigation, and so on. The real estate plan is that after my wife and I die, our estate is divided into different trusts to provide a trust for all our children. We have an independent mandate and some incentives for all trust. At the age of 35, the child has the right to become her own trustee. So, essentially, the child can already take the trust the child wants "for his health, education, support, and maintenance." A child is free as an entrusted person to invest trust property in a seaside home, cabin, or any investment he or she chooses. Meanwhile, if this child is divorced, her spouse can not reach that trust. Furthermore, if the child falls into bankruptcy, lenders can not reach their fortune in this trust. This is what I call "protection packs" that can be placed on the assets that give our children "bulletproof" credit protection. It is also important to note that a child can not create his or her own confidence in providing such protection. The law in most states is such that creditors of trust provide protection only in cases where a person has created it for the benefit of another person. In other words, the originator of trust or trust can not be the recipient of trust and can not reach the creditor's protection. So as long as the parent establishes trust for a child or granddaughter, he or she can receive the credit protection described above.
Creating a Plan for Uncompromising – Since we all have time, we can see that our minds and memories are falling. Most of our property issues in our company are related to the inability of one or the other parent. When that happens, we find that many children turn to each other and there is a fight that is best in the mother and father. Unfortunately, children rarely agree on what is best. So a legal battle will continue to determine who has the means to control and who can make medical and financial decisions. Yes, these problems must be handled by a lawyer. But the purpose of the remedy is to address short-term situations, not permanent solutions. It is much better to have a plan within the confidences of who is responsible ("successor agent") when the mother and father are no longer able. In addition, what is the obligation of the Successor Truste to provide books to all children and inform them? Under what circumstances can the mother and father move from the state? What is the plan when the devices run out? Does mother and father live in a nursing home? Keep in mind that people over the age of 75 are more likely to become disabled and unfit for the next five years and die in the next 5 years. Then insert the fact that children are more likely to struggle with questions about what is happening to the mother and father, they must fight over the inheritance when a mother and a father die. Customers are much more likely to avoid these losses if a well-defined real estate plan is in place.
Privacy – Many customers like that Tróp-administered property is more likely to be owned by a court-managed property. So some of our customers create a trust for the simple fact. We've all seen ads on TVs where someone talks about real estate strategy for real estate buying a property. How do these professionals find the property and know what is in suspicion and what is not it? The answer is simple, with a lot of suspicious procedures, an inventory was placed with the Court and this register is a public record. So, all you have to do is have a person sitting in an office looking for records to find a real estate. Then it is easy to find the names and addresses of the heirs. Now that most of the heirs are set up and there is local real estate, the magic is in the fact that these are now "motivated sellers" and a low bali offer. The point is, the financial affairs of the deceased are now public records that are easy to search from any computer. Creating a Trust secures privacy and avoids this confidentiality.
In summary, there are many benefits to land design. It is also true that there are many risks and problems that were not created by building a land based plan. An important cause and benefit to you depends on your situation. In fact, I listed the reasons that are least important to me and the reasons that are most important to me the last. I am but based on 27 years of experience. You have to decide what matters to you. But in the end at least focus on questions and the plan is inevitable. During my early career I developed a "line" that I used in our public seminars. When the customer said, "Oh, I really do not think that land design would bring me any benefit at all." My answer "was ok, put my contact in the fridge". I knew this language, knowing that the few dollars a customer had to spend on creating a real estate plan would increase huge legal fees when the kids were trying to fight and try to cope with lack of planning or poor design. There is a reason why our real estate department is a rapidly growing area of our company. Hopefully your family will not fall into this trap. Whatever the reason or "just one thing", use this as a motivation to create a quality real estate plan. It gives you and your loved ones an invaluable peace of mind.