Avoid Probate! Have a Living Trust

Whether a Californian who lives and dies with a Will or without one if any property is owned in your own name over a certain low threshold of $150,000 then probate will likely be required.

By changing the way you hold title to your property a Living Trust makes probate unnecessary. Putting all of your assets in the trust you have absolute control over all your assets, it’s as if you owned them in your own name. Though, you do not own property in your own name.  Instead, your Living Trust owns your property.  And you own your Living Trust.

Initially, one might think that not owning their property in their own name is a bad thing.  But it’s not a bad thing….it’s a good thing, because you are the Owner (aka Trustor), Manager (aka Trustee) and Trust Beneficiary.  So you (and your spouse) control your Trust and the assets in it.  You can give away your Trust assets, buy assets and put them in the Trust, sell Trust Assets, trade Trust assets, derive income from Trust Assets and even mortgage Trust assets.  As long as your trust is revocable and not non-revocable you can change your Trust, add to it, or even revoke it any time you want.

The real difference the Trust makes is when you die. The person you assign to take charge of your Trust after your death is your Successor Trustee. The successor trustee will step in and do everything according to what is written in the trust for the disposition of your estate.  This saves your survivors huge costs, prevents a disgruntled family member from challenging your final wishes, eliminates publicity and relative to the cost of probate, costs very little and is not an inconvenience for your family.

Living Trusts are also indispensable for avoiding the indignity of a conservatorship.  In the event of your disability or mental incapacity a Living Trust helps you ensure that your physical and financial needs are handled as you would want them to be.

The Living Trust dates back hundreds of years. As consumers become better educated about the pitfalls of probate, all signs point to Living Trusts becoming even more popular in the years ahead.

Trusts Are necessary for classes of people

Do all wealthy people have trusts…decidedly so. They have a lot more than just a trust…but that is another story. Now that you’re aware of the challenges of probate, it’s probably the last thing you’d want to bequeath your loved ones. Even if your estate is valued less than $150k or includes real estate at any value, you should probably have a Living Trust to avoid death probate. Regardless of the value of your estate, you should definitely consider a Living Trust in order to avoid living probate.

A comprehensive Living Trust-based estate plan will cost you more up front than a “discount” Will or bargain basement Living Trust. Begin by searching for a Trust attorney or call me for a referral anytime.

The American Academy of Estate Planning Attorneys recommends that you start with an attorney who is experienced and qualified and concentrates on this area of the law.  That’s the best way to ensure that your legal professional has invested the time and energy to providing you with the most current estate planning techniques.

Your Living Trust

Once you’ve worked with your estate planning attorney to create your Living Trust-based estate plan, don’t stop there.  Taking advantage of everything this powerful estate planning tool has to offer requires these final steps:

• Make sure you put all of your assets in your Living Trust. A trust can only work if the title to your property and accounts have been transferred to the Trust.  If you keep your property in your own name, then the trust is useless.
• Keep your Living Trust up to date. As you acquire new property, be sure that you transfer title to these assets to your Living Trust.
• Ideally, a Living Trust is a living, breathing document, and a plan that will serve you for many years to come. That means, however, that you’ve got to take the time to review it periodically and have it updated as your family’s situation, your goals, and your needs change.  A good estate planning attorney will stay in touch with you over the years to ensure your Living Trust continues to serve you well.

Article Paraphrased from What Every Senior Should Know About Probate May 9, 2014 by American academy of Estate Planning Attorneys

Call me or send me an email, I’ll be happy to help you sell your home when you are ready.

Gloria Roma

Call 726-999-0566

or Email Us

Elderly Parents Money Saving Tips

If you’re already retired in your San Diego senior housing, then you will want to save as much of your money as possible. One of the biggest problems for elderly parents is finding where those savings can be made, but if you have the right advice, you’ll find that you can be more comfortable and financially secure, even without having to make major sacrifices.

If you want to make the most of your fixed income, the best way to get started is with these ten helpful tips.

1. As An Elderly Parent, You Need to Manage Your Regular Expenses

Making sense of all of your financial obligations might be difficult at first, but once you document everything, you’ll have a simple system to keep track of all of your regular expenses. Insurance, medical costs, groceries, and any mortgages will be easy to calculate and document, and you’ll have a clearer understanding of what is coming in and going out every month. By defining your expenses, you can set a budget, stick to it, and live within your means to avoid wasting any money. Saving money on regular expenses will be hugely beneficial for your overall estate planning.

2. Take Advantage of Medicare Savings Programs

You might be able to get more money back into your Social Security check if you’re enrolled in Medicare. Medicare savings programs can help to reduce your co-pays, as well as your premiums.

3. Save Money on Your Prescriptions

Medicare can help in another way by offering a number of programs that provide assistance for drugs for your elderly parents.

4. Get Assistance With Property Taxes

If you have property assets then these could be costing you a significant amount of money in unnecessary taxes. There are programs available that will help you to reduce your annual tax, such as circuit rider and local abatement programs. With the right program you could save up to $2000 every year.

5. Free Cell Phone Plans

Everybody needs a phone in the modern age, but you might be paying too much for yours. A number of states offer free cell phone plans and elderly parents money saving tips on their websites. Look for options in your local area and search Google.

6. Spend Your Time Wisely With Volunteer Work

During estate planning you will find that you have plenty of downtime, which could be used to perform community work. There are a number of programs that offer stipends for seniors, and this can be a great way to supplement your income. This elderly parent money saving tip isn’t really money saving…but it does fill your heart because giving is in of itself a gift to ourselves.

7. Leverage Off of Your Home Equity

If your fixed income is simply not enough, and you don’t want to rely on a trust or other financial fund, then you could leverage off of the equity of your home (or other large asset) so that your finances remain solvent.

8. Take Advantage of Senior Programs

Don’t forget that there will be plenty of companies near your San Diego senior housing that will be able to offer senior discounts. Always take advantage of these to reduce your day-to-day expenses. SDGE, mobile phone companies and others provide elderly parents money saving tips on all of their websites because they know that the more they help our elderly the better off we all are.

9. Get Your Estate Planning in Order

Whether you’re setting up a trust, outlining your will, or even setting up a gifting program to distribute money to your loved ones, you should always make sure that everything is legally finalized, as early as possible because life is uncertain.

10. Get Expert Help for your Elderly Parents Money Saving Tips

Estate planning can be time consuming and complicated. You can get free advice from a local estate services company for elderly parents, or you can find assistance from the U.S. Department of Health & Human Services. The best advice will allow you to save you the most money, and you will have confidence knowing that your financial affairs are taken care of.

Call me or send me an email, I’ll be happy to help you sell your home when you are ready.

Gloria Roma

Call 726-999-0566

Email Us

Estate Planning Baby Boomers

America is now home to more retirees and elder people than ever before. Thanks to medical advances and lifestyle changes over the years, the population is living longer than ever. That’s fantastic news for you, but it does mean that you’re going to have to start thinking about the future. If you’re about to retire, or living in San Diego senior housing, you need to start thinking about estate planning.

What is Estate Planning

Estate planning, at its most basic roots, is the anticipation and planning for the management and disposal of a person’s estate after their death, or when they become incapacitated. It is very much an individual process and will look slightly different for everyone. Mostly though, the goals are to minimize paying taxes on fees such as gift, estate, and income tax.

Why you Should be Thinking About Estate Planning Now

It’s not something you really want to be thinking about, and that’s understandable. However, estate planning really is in your best interests. It’s not only to manage your estate after the event of your death, but to arrange care for you if the need ever arises. One of the drawbacks to the population living longer is that the risk of developing conditions such as dementia and Alzheimer’s also goes up. If you’re lucky, you’ll never have to live with those conditions. It is sensible though to plan for a future in which you may have to. Your planning can include naming people in trust to take over your assets when you become ill, and that’s where a conservatorship may come in.

The Basics of Conservatorship

A conservatorship is a legal process in the United States, that gives one individual control of the assets of another. This usually comes about because the conservatee is living with physical or mental limitations, including those that come about from old age. There are actually a few times where a conservatorship can be appointed. For example, if a person is suffering from psychosis, or is suicidal, somebody can be placed to care for them.

The conservator’s roles are varied, depending on the needs of the conservatee. They may need to oversee their health care, take over paying house hold bills, or take care of the person’s living arrangements. So, for example, a conservator may decide that it’s in the conservatee’s best interests to begin living in a San Diego senior housing complex, as they would get the best care there. They would also look after paying for the housing, and checking in with the staff when needed.

Who can be a Conservator for You

When planning for the future, you’ll want to think about who you would taking care of your affairs, should you need that help. Often, retirees choose a spouse or a child of theirs to take over when the need arises. You want somebody who’s close to you, that you believe will have your best interests at heart. So it’s best that you learn estate planning now baby boomers.

Keeping your family nearby has several advantages as you retire. For one thing, having strong family ties has been shown to actually delay the onset of dementia in patients. As well as this, having close relationships means if you do start to show signs of becoming ill, they will be able to detect it much quickly, and get you the right help. That means if the conservatorship needs to be enacted, it can happen while you’re still able to understand the process.

How the Process Works

If you’ve already set up a trust for conservatorship while you’re fit and healthy, it will be fairly simple to have it enacted. When you’re planning, go to an elder care lawyer in your area to have the trust set up. This is a straightforward process, and you won’t need to visit a large law firm in order to do this. Most lawyers that work in elder care are often sole practioners. They’ll walk you through the process and help you understand everything so you understand estate planning baby boomers that needs to be done.

Once it has been established by your appointed conservator that you will need the care of a conservatorship, they will visit this lawyer and discuss the matter with them. The matter of setting this arrangement up does need to go through court, but the lawyer will do this on your behalf. If you’ve already put a plan in place, this should not be too difficult, either.

Once the conservator is legally in charge, they will have the control over your assets that you agreed on when you were healthy. This will vary from person to person, but generally your needs will be cared for by the conservator.

What Happens if an Estate Plan isn’t Put in Place?

If you haven’t got a plan legally drawn up when you become ill, it could be the case that several people could petition the courts to be appointed your conservator. When this happens, the judge will have to decide who is put in charge.

In most cases, the first person to be considered is a spouse or partner. If this isn’t possible, then any children you have will be considered. They will go down a list of your next of kin, depending on who is in your family and able to care for you. Understand estate planning now baby boomers.

In some cases, this can work out well and the conservatee will be in good hands. However, if it’s your estate, you want to be sure that someone you pick is the one to be able to have access to it. That’s why it’s so important to plan for this eventuality.

Other Concerns when Estate Planning

1. Creating a will: Anyone over 18 should have a will, and you probably already do. However, if you don’t, now is the time to draw one up. Even if you think you don’t need one, it can save a lot of worry and confusion among your heirs if they ever need to use it.
2. Physical items inventory: You may have already done this when you made your will, but it’s a good idea to have this document in case you need a conservator, or in the event of your death. You’ll need to go through your possessions, and list anything that’s over the value of $100. This can include laptops, TVs, furniture, and so on.
3. Non physical assets inventory: Once you’ve done the physical inventory, it’s time to count up your non physical assets too. This can include life insurance, bank accounts, 401k plans, and so on. If you’re not sure what to include, you can consult with a legal expert.
4. Assemble a list of your current debts: It’s a good idea to run a free credit check on yourself every year, so you can keep up to speed on what you’re currently paying off. Make a list of any debts you have. These can include credit cards, mortgages, students loans, and any other kind of debt. Having a good record of your current financial status when you understand estate planning baby boomers you too can make it easier for a conservator to keep track of what needs to be done with your assets.
5. Check up on your life insurance: While speaking of life insurance, it’s worth checking up on yours while you’re fit and well. This is to make sure that they’re giving you the right cover, and that you have the right beneficiaries listed on the policy.
6. Consider your digital life: Until recently, people didn’t have to think what would happen to their online data when they died. Now, though, there’s all kinds of things to consider. You may have several social media accounts, or an email address that holds a lot of your personal information. You may want to have the passwords for them stored, with instructions on what to do with them should the need arise.

As you can see, there’s a lot to think about when you’re planning what to do with your estate as you retire. There’s so many things to take into consideration that it can be overwhelming.

However, understanding estate planning baby boomers you begin to understand conservatorship making it a great way to put your mind at ease. That way, you know that if you need it, a loved one can step in and help you out with your finances and estate. Speak to a legal expert and see what you can get drawn up. It will help out an awful lot in the long run.

Call me or send me an email, I’ll be happy to help you sell your home when you are ready.

Gloria Roma

Call 726-999-0566

or Email Us

What the Shocking Death of Prince Can Teach Elderly Parents

When the artist Prince died earlier this year, the news came as a shock to everyone, especially his fans and those who were close to him. At the age of 57, his family and friends were left behind, trying to make sense of the loss. After grief, the financial reality would set in, and unfortunately for all involved, there was absolutely no estate planning to be found. With no trust and no will, nobody will ever really know how Prince Rogers Nelson would have wanted to distribute his wealth.

Elderly parents in San Diego senior housing can learn from this story. Prince probably thought it was too early to arrange his affairs, but the reality is that it’s never too early. Rather than putting your family through an expensive and stressful legal process to divide your estate, you can take lessons from Prince’s unfortunate situation, and act now to get your affairs in order.

Nine Important Estate Lessons for Elderly Parents

• 1. It’s Never Too Early to Arrange Your Estate

It doesn’t matter how old you are, whether you’re approaching retirement or you’re well into your golden years, an unexpected event could change everything for you and your family. Estate documents should be kept updated and they should be legally binding. With a trusted estate attorney, you could manage your will, a trust, or any of your important legal documents. Find a trusted legal representative who is close to your home in San Diego senior housing.

• 2. Don’t Underestimate Your Assets

Whether you’re going to be leaving a multimillion dollar property portfolio, a cash amount, or simply the possessions that you have in your home, there is always a reason to perform estate planning. Having a legal will helps to ensure that your family won’t have to go through painful legal proceedings in the future

• 3. Be Involved With the Process

Maintaining involvement is the best way for you to understand the process of planning your estate. While you will need help from a legal professional, it’s not a good idea to leave things entirely in the hands of someone else. There will be papers to review and sign, and you may even be able to learn ways that you can save money now that you’re living on a fixed income. Find out exactly which legal documents you will need, whether they be for a family trust, your personal will, funeral arrangements, or a legal directive for health care should you become incapable of making decisions alone. Paying attention to detail will help to eliminate family conflicts. The passing of a loved one is an emotionally distressing time, and adding on the weight of an unplanned estate could create additional stress and division within your family. Always be involved and ensure that your documents are robust enough to serve their purpose, especially for when you won’t be around to ensure that things go ahead as you planned.

• 4. Make Things Easy for Your Family

It’s important to be open with your family when it comes to your estate. You don’t need to be specific about how your estate will be distributed, but you do need to make sure that your immediate family knows you have a will or other legal documents, and that they know what to do when the time comes to make use of these documents. Your planning will be worth nothing if you and your spouse are the only ones who are aware and involved.

• 5. Don’t Make Assumptions About Anyone in Your Family

It’s not just the elderly that will benefit from a will and other estate documents. Anybody in your family could be affected by an unexpected event. Don’t assume that people have their affairs in order, and make an effort to talk to your family about the importance of having a plan. You could use the Prince story as a great example of why estate planning is essential, no matter the situation or age.

• 6. Remind Yourself of the Harsh Realities of Dying Without a Will

Perhaps the best motivation is reminding yourself about exactly what will happen if you die without a will in place. Intestacy is the legal term used for situations where someone has died without leaving a formal and legally binding will or other declaration. Your family will be dealing with grief, and then on top of that, your estate will now be left up to the inheritance laws in your state. The state will distribute your assets based on their power under the law, but this will in no way be representation of your intentions. Some family members may not be happy with how the state divides things, and this could lead to legal proceedings that create deep divisions and hostility within your family. Even the closest families can be profoundly impacted by the intestacy process, and this is not the kind of legacy that you want to leave. The majority of adults simply aren’t aware of what happens when someone dies without a will, and things become more complicated when unmarried and divorced elderly parents die. When children are involved, things complicate even further, and the state’s definition of a ‘family’ might be quite different to your own.

Don’t leave any ambiguity when it comes to your estate. Prince was the highest profile case of the last year, but there were countless other unexpected deaths where there was no will in place. You don’t have to leave things up to the government’s interpretation of the law. Instead, always make sure that you plan ahead, no matter your age or your circumstances.

Baby boomers are now retiring, and that means it may be time to think about estate planning and downsizing to a smaller property. After all, you no longer need your large home now your children are now living away with families of their own. This means you’re free to move to more manageable living arrangements, such as those in San Diego senior housing.

Many retirees are now thinking about renting properties instead of buying them. There’s a lot of positives to this idea. You no longer have to worry about mortgage repayments or maintenance, and there’s no worry about what will happen to the property if the worst happens.

However, it does come with its own set of challenges, too. Here’s a guide to help you navigate them and find a home that’s right for you.

The Challenges of Estate Planning

– Selling your home: The first thing you will have to do is sell your current home. This can be upsetting, especially if you’ve lived there a long time and raised your children there. Also, you will have to go through all the legal wrangling in order to get the sale completed. That sale money will most likely, at least in part, go towards the rental of your new home.

– Finding the right property: While you’re selling your home, you’ll also need to find a new home too. Rental homes are often more popular with different demographics, which is why so many retirees choose to go with a San Diego senior housing arrangement. You’ll need to keep an eye out for who your neighbors would be, and what’s the area for you.

– Legal challenges: Of course, there’s a whole set of legal challenges for retirees, too. The biggest worry can be setting up a trust, in case you’re ever in need of a conservatorship. If you find the right legal expert, they can walk you through this process. That means that you’ll find the whole experience a lot easier, and it can hopefully put your mind at rest.

The Benefits of Downsizing

Of course, along with the challenges come the benefits. Here’s just a few reasons downsizing could be for you:

– Saving money: When there’s less house, there’s smaller bills to go with it. A smaller place is cheaper to heat or cool as needed, and you’ll need much less furniture to go in it. You can even make a few dollars by selling surplus items before you move into the new property. When many retirees are thinking about how they’ll save money, you’ll have made a sensible step towards being financially sound.

– Reduce stress: You’re retired now, you want to start enjoying your free time. You can’t do that if you’re caring for a large home. A smaller one cuts down on the maintenance needed dramatically.

– It’s more eco friendly: Remember that a smaller home meant smaller bills? That means you’re having less of an impact on the planet. If you’re always looking for ways to reduce your carbon footprint, you can’t do much better than downsizing.

– Start a new chapter: If you’re suffering from empty nest syndrome, this may be the jump you need to take. Downsizing will help you move on with a new chapter in your life, and all the positive things it will bring.

Downsizing sounds like it’s stressful, but it doesn’t have to be. Plan your house move right and get a trust in place, and you know your future is secure. You’ll be amazed at how much your standard of living will increase.