My loved one is terminal, how can I help make sure the estate planning affairs are in order?

Check the following three areas:

Use our Emergency Forms if necessary, and call us if we can be of assistance or answer any questions.

In the United States, ownership of marital property is governed by two major systems of law: community property law and common law. Community property states include Alaska, Arizona, California, Idaho, New Mexico, Nevada, Texas, Washington, and Wisconsin. (Louisiana has something similar to a community property system but is in a category by itself.) All other states and the District of Columbia are subject to common law...

To learn more about titling assets in Community Property States, you may find the following article by Strong Education Series infomative.To read the article in its entirity, go to Titling Assets in Community Property States 

One of the simplest and most often overlooked estate planning issues is the proper titling of your assets. Simply put, titling your assets is the process of legally indicating whether you, someone else, or both of you own an asset. This is important for two reasons. The first is that if someone else owns an asset, either outright or jointly with you, it may remove all or some of that asset’s value from your estate and therefore, from your tax liability. Transferring assets to a trust is an example of a change in ownership that might provide you with an estate planning benefit.

Another important reason for proper titling is that it may help you avoid the process of probate, otherwise known as the reading of the will. Probate can be a costly and agonizing experience for those to whom you intend to leave your assets. Fortunately, it can be easily avoided through reviewing the titling of your assets and the designation of your beneficiaries on assets such as life insurance or retirement plans.

(TFD)

Funding refers to the act of placing the assets that you and your family own into a Trust. Funding is accomplished by re-titling the assets in the Trust's name. For example, title to any bank accounts, stock certificates or real estate owned by the grantor must be transferred into the trust. Contrary to the impression created by many living trust salespeople, the grantor must take affirmative steps to transfer assets and fund the trust. Merely executing (signing) the living trust itself will not cause the trust to become funded. The act of funding one's Trust is so important, since the Trust can only benefit those assets that it maintains title to.

Thousands of Americans each year take the time, effort, and expense of diligently setting up a trust of some type, but then fail to fund the trust with their assets. The actual establishment of the Trust is only half the battle. Your most valuable assets, which you want to be controlled by the Trust, must be titled with the Trust's name for the Trust to afford any benefit to your family.

There is no universal rule of thumb when it comes to funding your estate plan. Trusts should only hold title to certain types of financial vehicles.

If you have questions or concerns about the funding of trusts, call our firm for a complimentary telephone consultation.

Distributions

Generally as soon as provisions have been made for taxes, debts and expenses. Provided the estate/trust is solvent, debts should be paid as presented and validated. There will be expenses; professional fees, filing fees, administrative fees, estate taxes, inheritance taxes, income taxes, estimated taxes, property taxes, property maintenance and other carrying charges. Distributions do not have to be made all at once; partial distributions can be made as assets are collected.

We highly recommend that distributions be planned, because depending on how and when distribution occurs material tax consequences for both the fiduciary and the beneficiaries can result. Remember, a Fiduciary is liable for property mistakenly distributed; therefore, the Fiduciary should receive, and is entitled to, a Receipt and Refunding Bond from the beneficiary.

If you have a taxable estate, we highly recommend that you call our office for a complimentary consultation with a seasoned tax strategist.