Law Offices of Claud A. Sinclair




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LIVING TRUSTS HELP PRESERVE FAMILY WEALTH…AND MORE…

THEY ARE NOT JUST FOR THE WEALTHY
It's a common misunderstanding that living trusts are only utilized by the wealthy. But many people can actually benefit by creating a living trust.
You may assume that your assets are too modest, or that you have plenty of time to make arrangements for events that are still years away. But even if you possess a small estate, a living trust can be a valuable estate-planning tool. By laying a foundation for the future now, you'll be doing both yourself and your family a favor.

WHAT IS PROBATE?
Probate is the legal process through which the court "proves a will". It is the process of changing title from the old owner to the new owner, whomever that may be, which can be costly. Most property (real estate) ends up being sold and lost to your family forever. If title is left in the decedents name your beneficiaries can not sale the property or take out a loan against it until it is probated. Most beneficiaries can't afford the cost of probating the property and most property has to be sold to cover the expenses. Like a bucket with a hole in it, WEALTH flows out and is lost forever.
The probate process can be expensive and time consuming. The main expenses are attorney, executor, appraisal, and court filing fees. The fees generally range from 4% to 10% of the entire value of your estate, and depending upon the complexity of the estate, can take an average of nine months to two years to complete. Probate usually becomes a tremendous burden for your loved one.
KEEPING CONTROL WITH A REVOCABLE LIVING TRUST
A revocable living trust is a legal contract, which holds and manages your assets. It includes your instructions for what you want to happen to your assets - just like a will. But, unlike a will, a funded living trust avoids probate. It also prevents the court from controlling your assets if you become incapacitated or pass away.

ADVANTAGES
AVOIDS PROBATE;
PREVENTS COURT FROM CONTROLLING ASSETS AT INCAPACITY; ASSURES MAXIMUM PRIVACY; RAPID DISTRIBUTION OF ASSETS TO BENEFICIARIES; CAN REDUCE OR ELIMINATE ESTATE TAXES; EASY TO ESTABLISH AND MAINTAIN; REVOCABLE DURING YOUR LIFETIME; DIFFICULT TO CONTEST; CAN PROTECT DEPENDENTS WITH SPECIAL NEEDS; PREVENTS PROBLEMS WITH JOINT OWNERSHIP, PROVIDES FOR GUARDIANSHIP OF MINOR CHILDREN AND PROVIDES PEACE OF MIND.

DISADVANTAGES
The initial costs of setting up a trust are usually higher than those for writing a will. But ultimately, your beneficiaries may save thousands when compared to the probate cost and the risk of losing your family home. This is a major reason communities change its composition.

HERE'S WHAT YOU WILL RECEIVE IN YOUR REVOCABLE LIVING TRUST PORTFOLIO
Premium packet $850; Basic Packet (*) $495.

REVOCABLE LIVING TRUST (*)
Avoids probate, Conservatorship and, in many cases, reduces estate taxes.

POUR OVER WILL (*)
Transfers assets held outside of the trust into the trust.

CERTIFICATION OF TRUST
Provides a summary copy of the trust for easy use in dealing with banks, brokers, insurance companies, etc.

LIVING WILL
Authorizes medical personnel to remove life support systems, if you so desire, in the event of a terminal illness or injury.

DURABLE POWER OF ATTORNEY
Authorizes your agent to place property into the trust in the event of your absence or disability so that the trustee can manage it.

MEDICAL POWER OF ATTORNEY
Authorizes your agent to make health care decisions should you become incapacitated.

THERE ARE NUMEROUS ESTATE-PLANNING OPTIONS TO HELP MEET YOUR GOALS.

If you think Knowledge is expensive, what is the cost of ignorance?
STOP THE WEALTH DRAIN!


Law Offices of Claud A. Sinclair
5708 S Fairfax Avenue
Los Angeles, CA 90056-1225

Phone: (323) 299-2509
Fax: (323) 298-8559

 

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