1. Wills
1.1. Guarantee Probate
1.1.1. Joint Tenancy guarantees probate on second death
1.2. Problems
1.2.1. Lost wills
1.2.2. Wills don't affect IRAs, Life Insurance or joint property
1.3. Good things
1.3.1. Wills avoid the "bond" payable in probate
1.3.2. Couples with young children (needing guardians) use wills
1.3.3. Usually inexpensive to have prepared
2. Probate
2.1. What causes Probate?
2.1.1. Dying with a will and more than $100,000 in own name
2.1.2. Any real estate in own name
2.1.3. Dying with no will "intestate" and more than $100,000 in own name
2.1.4. Usually a house in the deceased's own name or stocks in deceased own name cause the probate
2.2. What avoids Probate?
2.2.1. Living Trust
2.2.2. IRAs with a beneficiary
2.2.3. Life Insurance with a beneficiary
2.2.4. Joint Accounts with 1 person living
2.2.5. TOD "transfer on death" accounts
2.3. Fees
2.3.1. $500 filing fee
2.3.2. $2500.00 attorneys fees minimum often more
2.3.3. Executors Fees
2.3.4. Bond required in intestate estates
2.4. Delay
2.4.1. 6 month wait during "claims period"
2.4.2. 30 day wait to open estate in estates with no will
2.5. Forum for Disgruntled Heirs
2.5.1. Fights over who will be executor
2.5.2. Notice must be given to "heirs" even if they don't inherit
3. Living Trust Benefits
3.1. Pros:
3.1.1. Avoids Probate
3.1.2. Protects Against Disability
3.1.3. Private-Not registered anywhere
3.1.4. Can save on inheritance tax for married couple only
3.2. Cons
3.2.1. "Funding" of trust
3.2.1.1. Cost of setting up- attorneys fees
4. Inheritance Tax Freebie Amount
4.1. Uncertain at Best
4.2. 2006 $2.0 million
4.2.1. Further Update- In August 2006 the Senate rejected this change.
4.3. 2009 $3.5 million
4.4. 2010 Unlimited
4.5. 2011 Back to $1.0 million
5. Types of Trusts
5.1. Two Living Trusts Married Couple
5.1.1. Use if: Total estate is $1.0 million or more
5.1.2. Pros: Avoids Probate
5.1.3. No estate taxes up to $4.0 million
5.1.4. Protects against disability
5.1.5. Cons: Cost of establishing $700 per trust; "funding"
5.2. 1 Trust for Married Couple
5.2.1. Use if: Total estate is $1.0 million or less
5.2.2. Pros: Avoids Probate, Protects against disability
5.2.3. Cons: Cost of establishing $700, "funding"
5.3. Single Trust Divorced, Widowed Single
5.3.1. Use if: Anyone can benefit
5.3.2. Pros: Avoids Probate, Protects against disability
5.3.3. Cons: Cost of establishing $700, "funding"