If you own bank accounts and want to reduce your exposure to probate with these assets the “payable on death” option may help you.

This option offers an easy method to keep bank accounts out of probate court. All that is required is a form which most banks can supply naming whomever you want to inherit the money in your account at your death. The process is simple, at your death the beneficiary simple goes to the bank with proof of your death and claims the funds in the account.

Nothing happens while you are alive and you have not signed away any rights. You are not giving anyone access to your funds while you are alive. The payable at death (POD) only allows access at your death. The probate court has no jurisdiction or say in how this account is transferred.

In the event of joint ownership between spouses, the POD will not become effective until the death of the last remaining spouse. This simple and easy to use step in avoiding probate requires no fee or charge, simply a form to sign.

If you own an IRA, 401 k or other type of retirement account you will be asked to name a beneficiary. If a named beneficiary inherits the account at your death, it also avoids probate and is transferred immediately and without delay. Naming a beneficiary though a will may cause the need for a probate decision and can cause delay.

Single people are allowed to name anyone they desire but married couples could be required to name their spouse as beneficiary. If planning for heirs is to transfer funds to a child or other beneficiary other than the spouse, permission may be needed to make that designation. Community property states may also have requirements for the surviving spouse that may not wish to be designated as a beneficiary.

When considering estate planning issues it is always important you obtain proper legal and tax advice. An incorrect or improper decision may be costly and cause undue tax or expense liability.

By: Bill Broich

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In Colorado, lawyers for various fields are available. Lawyers practicing Business Law, Commercial Law, Franchising, Litigation and Taxation are available for Colorado. The lawyers and law firms are bound to the Colorado Rules of Civil Procedure and other Colorado Laws.

Lawyers practicing in Business Law perform a number of jobs for their clients. They can assist and suggest the nature and type of organizational entity under which one should operate and various other business law details.

The lawyers work closely with their clients in the formation and business planning stages. They also assist in the various preparations of agreements, obtaining financing and funding for various business operations, sale and purchases of businesses and dissolution.

Matters pertaining to director and shareholder liabilities, their rights, franchising, dissolution, reorganizing, and joint ventures are also handled by lawyers in Colorado.

Estate Planning and Probate lawyers are also available in Colorado. These firms handle the entire range of estate planning matters, ranging from life planning to complex dynasty planning.

Lawyers in this area deal with disability planning, entity’s property at the time of death, wills, taxes, insurance, property, benefits, and trusts. Lawyers work towards their clients getting full benefits of various laws.

Various law firms also handle franchising. Their job profiles range from preliminary examination to final negotiation. Lawyers in Colorado are available for franchisees. They are hired for remedies through courts, arbitration and negotiation.

Litigation is another strong area for which lawyers are available in Colorado. Their profiles range and include lawsuits to settlement. Various law firms also represent clients in Colorado in matters of tax implications and other inherent tax problems.

By: Jimmy Sturo

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Trust funds are becoming more and more commonplace amongst not only the super-rich class of citizens, but in average families as well. As the property value on homes increases and people make more and more money off the stock market, people are increasingly turning to trust funds for their children (and even grandchildren) as a way to preserve their own wealth, establish some financial security for their children, and minimize death taxes.

Who Benefits from Trust Funds?

Trust funds benefit not only the beneficiaries of the trust fund (usually, the children of the trustors), but the individuals who establish the trust, as well.

When a trust fund is set up for a child, the money or property is handled by a trustee-usually, someone who has experience and is responsible with handling money. Assigning a trustee to handle and control the money in a trust fund ensures that the beneficiary cannot recklessly spend all of their property.

For the parents, grandparents, or other individuals setting up the trust fund, there are numerous income, gift tax, and estate benefits that come with establishing a trust. In the case of grandparents establishing trusts for their grandchildren, they can establish a trust fund for their grandkids while they are still living, or they can arrange to have money put into a trust after their death.

What Type of Trust Fund Should I Choose?

When deciding to set up a trust fund for your child, it is important that you choose a trust fund that will qualify your investment for the annual gift tax exclusion. Currently, there are two types of trust funds you can set up (for a minor) that qualify for the gift tax exclusion:

· Section 2503(b) trust-with this trust, money must be annually given to the beneficiary while they are a minor. If your child (or grandchild) is too young to responsibly handle the money, it can be put into a separate account for them.

· Section 2503 trust-the section 2503 trust allows for all money and property in the trust to be used for the child until their 21st birthday. Once the beneficiary turns 21, all money left in the trust is given to the child, and it is their decision to either take the money or to extend the trust.

Remember….

It is important to remember that a trust fund is significantly different than a bank account. Once you put money into a trust for your child (or grandchild), you cannot get the money back-even if you really need it! Be sure to think about this decision before allocating money for a trust fund, and be sure to consult a legal professional before making this type of investment.

If you would like more information on trusts or setting up a trust fund, contact the Austin probate lawyers at the law firm of Slater & Kennon, LLP today.

By: Joseph Devine

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If life is not sufficiently complex, then think again about death and taxes! Dying has never been more messy, as State and Federal courts prowl through deceased persons’ estates in search of “government’s share” of what you’ve worked and saved for. Simple, legally proper and increasingly popular living trusts in California guarantee you and your heirs privacy and lower estate transfer costs to after-death estate events for State residents.

Probate Versus Family’s Interest Contained By A CA Living Trust. Preserving family estate assets from the protracted and expensive probate process is the key to the grantor style revocable living trust. It’s all about time and money savings to your heirs. Absent proper estate organization … supported by lawyer-prepared documents … your heirs might wait three years or more, plus literally lose over 20% of the underlying asset value to “probate administrative costs”.

Assets - What Have You Actually Got? Are all of your assets located in California? Or, do certain assets, like a cottage or retirement condo or boat exist outside California?

* In-California Assets. If you’re single, and a resident of California, then your California living trust can accept your asset transfers as “separate” rather than “community” assets as is the case when a married couple … with joint title to say a house or real property … makes a transfer designation of that jointly-owned asset into your California living trust. In California law “community property” can be managed by a spouse, without limiting authority or transfer rights.

* Out-Of-California Assets. Any financial or real property assets that you have either deposited at a financial institution or held as title registered to an out-of-State address should be transferred into your California living trust. There’s a catch, however, you need to do the asset transfer correctly, based on the other State’s laws … so to be prudent hire an estate attorney in the other State to draft the required documents.

How Does Your Revocable California Living Trust Manage Your Death Event? Let’s assume that all of your in-State and out-of-State assets have been properly transferred into your living trust, which is now “legally funded”. Your “successor trustee”, who acts with full legal or fiduciary powers and can be a qualified friend or an institution, checks on all areas of liability … think taxes, debtors or any other legal obligation … makes payments to eliminate these obligations prior to the distribution process you’ve outlined for your heirs.

Creating The California Revocable Living Trust Deed - Who Do You Need? Avoid low cost “estate promoters” selling estate planning deals. You’ve worked hard all your life. You love your family. You don’t want them to go through additional agony after you’ve died by battling with courts over faulty documents. In most communities you’ll find a suitably qualified Californian estate lawyer. His or her job will be to inventory your entire asset base,

Costs, Fees Estimate From A California Living Trust Attorney. California law obligates lawyers and licensed financial estate service providers to state in writing the full scope of their services … from assert reviews to document creation and review … along with associated cost for you to understand and accept or modify under contract.

Cancellation Rights On A California Living Trust - Consumer Protection. If your CA living trust preparation costs exceed $25 … which they certainly will do … then by law after you’ve signed the contract agreeing to purchase the service, you still have three business days following execution of the original contract and copy to cancel without liability.

California Taxes And Your California Living Trust. You may wonder … “how is my California living trust identified, as a legal person or entity?” by California, my county and the Federal government? Answer? Your social security number, as the grantor or settlor of this revocable living trust, is the identifying “code”. Under California law, no taxes accrue nor are taxes paid by your CA living trust until the grantor dies. Meanwhile, any ordinary income or reporting of capital gains or losses is reported on your individual income tax return. California living trusts do not confer any direct tax minimization benefits that could not, otherwise, be created through regular and proper estate planning, inclusive of ordinary wills.

Bottom Line. California living trusts offer privacy, and potentially significant cost and time savings to your heirs, without the imposition of court-ordered probate. Learn how CA living trusts and spendthrift trusts can simplify estate planning so that legal heirs.

By: Robin J. Derry

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Probate Process in California?

The probate process in California begins with a legal request or petition that opens the estate and names a PR or personal representative who takes care of the deceased’s property. An official Notice for Creditors is published in newspaper and a notice of same is sent to all the involved parties. Creditors are then given a set amount of time to file their claims depending upon the estimated time published in the notice. The PR then clears all the debts and dues remained in the name of deceased person and distribute the remaining estate to his close relative. Finally, the petition for discharge is filed and the estate is closed.

This is the normal process of probate in California. The process involves many smaller steps which had to taken care of during the whole legal process. In many cases when the property balance is more than speculated or has some tax liability to it then a tax consultant or a CPA is to be hired who estimates the overall pricing of the estate.

Below we show you how the legal procedure of Probate in California runs:

Probate - First Phase
- Original Will and Codicils are filed
- Legal Notice of Petition is published to the Administer Estate
- Notice of Petition is filed and published in the local newspaper
- Proof of Will and Codicils are filed for further enquiry
- A letter is issued to all interested parties.

Probate - Second Phase
- Application for Employer Identification Number
- Income tax return and other legal taxes are filed
- Opening estate bank account and arrange for tax returns
- A mail with legal notice is sent to debtors and claims are cleared
- Approval or refusal of claims are made
- Property is listed for sale
- A petition is filed for Confirmation of Property Sale
- Court hearings are made and any final federal taxes are cleared

Probate Third Phase
- Final petition is filed for distribution
- A notice is sent to heirs and beneficiaries
- Proof of mail is filed with court
- Final order of petition is filed
- Transfer of assets and properties is cleared

If in case there are any living spouse or relatives of the deceased the property is distributed in a legal way among them without giving benefit to a single person. The California state law has the rules according to which the reaming estate is distributed. The court has the final verdict on the sale or distribution of property. If a bid is overbid by any person during the hearing then the property is transferred to the highest bidder.

This is a simple explanation of probate process in California. We are only describing the legal process. It is advised to contact an attorney for proper legal procedure. You can find more detailed information in Sections 6400-6413 of the California Probate Code.

If you are in need of an attorney please feel free to e-mail me, I will send you a list of attorneys in Los Angeles.

By: Luis Pezzini

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Investing or selling real estate will probably the largest transaction you will undertake. In addition to the enormous financial commitment, real estate buyers and sellers face numerous details and a lapful of paperwork, much of which has been drafted in indecipherable legalese. It is indeed a difficult task for an individual to handle and fulfill these formalities successfully and without any complications on his own. With so much at stake, it is always advisable to hire a real estate lawyer to handle real estate transactions and deals.

Real estate lawyers have expertise and regular practice in the field of wills, trusts, probate and estate planning. These lawyers can be the best guides to give you sound legal advice as you put your estate selling or buying plan into place. Estate-planning attorneys are subject to the regulations of state bar organizations. Many of these organizations have continuing education requirements, as well as liability insurance in case of attorney error. When you speak with an estate-planning lawyer, you can get answers to your questions-including how much investing would cost. Hiring an estate-planning lawyer also helps to avoid the financial and emotional nightmares that can occur with a poorly drafted plan.

In case you are planning to buy or sell a real estate in New Jersey, it is always advantageous to hire a real estate lawyer from local office, as they are fully equipped with the knowledge of real estate law and rules of court. They can help you come out of the most legally and factually complex real estate cases, involving several layers of relationships, extensively detailed contracts, and rare or conflicting legal issues. Often the expense incurred in retaining an estate-planning lawyer to prepare and help you put an estate plan into place is worth several times what you and your family would pay with no planning or poor planning.

By: Jason Gluckman

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Wills and probate are part of life and death. A last will is used to express the final wishes of a person who has died. This legal document outlines everything from funeral arrangements to which assets beneficiaries will inherit. Upon death, decedents’ last will and testaments are filed through probate courts for validation and estate settlement.

The process of validating wills and probate typically extends between three and nine months. Probate allows time for estate administrators to locate missing heirs, contact creditors, obtain property appraisals, pay outstanding debts, and notify government agencies such as Medicare, Social Security or Veteran’s Administration.

Factors which can prolong probate include case workload, contesting a will, or when decedents’ do not execute a last will and testament. Intestate probate requires appointing an estate executor through court confirmation. Oftentimes, relatives will accept the position or retain the services of a lawyer or estate planner to settle the estate.

Contesting wills occurs when heirs believe they are rightfully entitled to inheritance assets which were not bequeathed to them. Heirs can also contest probated wills if they believe the deceased was not of sound mind or under the influence of another when they executed the document.

When wills are contested, the plaintiff absorbs legal fees unless the court rules in their favor. The decedent’s estate must pay for legal counsel to object. If the court files in the plaintiff’s favor, the estate must reimburse legal expenses. Contesting a will rarely accomplishes anything other than destroying family relationships and bankrupting the estate with litigation fees.

When family dysfunction exists, estate planning experts recommend hiring a probate lawyer to settle the estate. Although this can’t prevent heirs from contesting a will, it oftentimes dissuades family members from proceeding in this manner.

Several options exist to avoid probate and the time-consuming and costly tasks that come with it. Many estate planners and probate attorneys provide complimentary sessions to discuss estate planning needs. These professionals can advise the best course of action to protect your family and assets.

Estate planning can be as simple as executing a last will and testament to developing irrevocable or revocable trusts. Multiple types of trusts exist and can be customized to suit individual needs. Trusts are managed by an appointed Trustee. Assets protected by trusts are usually exempt from inheritance taxation.

Small estates can utilize strategies to keep assets out of probate. Assign transfer on death beneficiaries to retirement and financial investment accounts and payable on death beneficiaries to banking and checking accounts. Real estate and automobiles can be jointly titled.

Personal probate representatives must submit forms to state Tax Assessor’s office where the decedent resided. These forms are required to provide evidence no outstanding taxes are owed. As long as taxes are current, the Assessor will stamp the form and return to the institution where funds are held. Funds are then distributed to beneficiaries. If taxes are owed, the estate must make payment before distribution occurs.

The process of wills and probate can be a dreadful experience for loved ones; especially when family strife exists. Don’t procrastinate about writing a will. The process is not difficult and in the end it is the best gift you can leave your loved ones.

By: Simon Volkov

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The DUI Lawyer

The legal fees that are paid to a lawyer for a case if subject to money awarded are called contingent fees. In case there is a monetary award, the lawyer gets a percentage of the recovery. There is no written law about the contingent fees the attorney can charge a client. However, the rates are quite uniform because of the competition in this field. The lawyer charges more contingent money in those cases where he needs to spend more time or more money. In certain cases, such as worker compensation claims or claims under the federal law, the fees are regulated by the law.

These contingent fees generally increase in case of complicated cases and those that involve a trial or appeal. Simple cases, without much added expenditure attract a contingency fee of 33 1/3% of the total recovery. In medical malpractice cases, there is lot of money involved and the contingent fees based upon the outcome, have to reflect the risk and are kept high. The contingent fees include the expenses incurred by the lawyer during the case.

Many clients are unsure whether the contingency fee is calculated on the total amount of recovery or after subtracting the expenses. In most cases, contingent fees are calculated on the total amount recovered. A lawyer?s time and expertise has to be considered. If the costs in the case came out of the lawyer’s fee, expensive cases would pay the lawyer little or no fee. Since a lawyer’s time and expertise are part of his work, his compensation must be calculated accordingly.

It is worth considering the fact that if costs were to be borne out of the lawyers share, the lawyer would not want to spend the money. If the case is lost, then the client need not pay the lawyer.

By: Eric Morris

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For most people receiving inheritance is a mixed blessing. Heirs receive property or cash from a loved one who has died. During the grieving process, family members aren’t thinking about how much money or property they will inherit.

Inheritance assets are usually gifted through the decedent’s last will and testament. If decedents do not establish a trust their assets must undergo the probate process. Probate is handled differently in each state, but the process typically extends for several months.

Probate is necessary to validate decedent’s wills, locate missing heirs, pay outstanding financial obligations, and distribute remaining inheritance money and property to named beneficiaries. If no Will exists, a probate judge appoints an estate administrator to settle the estate. Inheritance property is then distributed according to probate laws of the state where the decedent resided.

It is not uncommon for heirs’ inheritance to be depleted during the probate process. Estate settlement costs, attorney fees, and outstanding debts must be paid before distribution can occur. The longer probate drags on, the higher potential for beneficiaries to lose most of their inheritance.

It is estimated less than 20-percent of heirs receive their intended inheritance gifts. Three options are available to protect assets and ensure heirs receive all of the property and money intended for them.

The first option involves giving away money and valuable assets prior to death. It is not uncommon for people to “gift” cash, financial assets, real estate and personal belongings to their loved ones while they are still alive.

The Internal Revenue Service permits gifts up to $12,000 per person or $20,000 per married couple per year, without being subjected to inheritance tax. Not only does gifting ensure beneficiaries receive the property, it reduces taxation and keeps assets out of probate.

The second option involves creating a trust. Many types of trusts exist, so it is best to consult with an estate planning service or probate lawyer. Inheritance property placed inside a trust is no longer considered part of the estate and exempt from probate.

Individuals who establish a trust must also execute a last will and testament. Trusts are managed by a Trustee, who is designated within the Will. Estate administrators in charge of trusts have fewer duties than those who administer probated estates because most of the tasks have been addressed through the trust.

The third option involves assigning ‘payable on death’ or ‘transfer on death’ beneficiaries. Payable on death can be used for checking and savings accounts, while transfer on death is used for individual retirement accounts, financial portfolios, and life insurance proceeds.

It is quite simple to assign beneficiaries to financial accounts and usually takes less than 15 minutes to complete necessary forms. Account holders can establish as many beneficiaries as they desire along with the percentage of funds they are to receive.

For example, an individual has a checking and savings account and wants the funds to be distributed equally amongst his four adult children. He would fill out a payable on death form at the bank and list the names, addresses and social security number of each recipient.

Beneficiaries cannot access funds until death occurs. They would then present their identification and a copy of the death certificate to claim their inheritance. Most states require estate administrators to submit forms to the county tax assessor’s office to verify the decedent does not owe outstanding taxes. This form must be stamped before financial institutions can release funds to beneficiaries.

Estate planning is the only way to protect inheritance assets. Most probate lawyers and estate planners provide complimentary consultations to help individuals determine which protection strategies are best suited for them.

By: Simon Volkov

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How to Pick an Attorney/Lawyer

There are no hard and fast rules regarding the legal fees charged by different lawyers. Generally, the fee arrangement is flexible and nominal. Broadly speaking, there are five basic types of fee structures followed. They are generally used individually as per the specific legal advice rendered. Flat or fixed fee is a prearranged fee that the client pays the lawyer on completion of the legal case. The lawyers calculate this amount based on their experience about the time, skill and effort that the case would require. Time based legal fees are calculated by multiplying the numbers of hours spent on the client?s case and charging accordingly. This type of fee structure is generally used in business matters such as negotiating the purchase or sale of a business or property.

A contingency fee is worked out at some percentage of the monetary recovery obtained in a negotiation. This is generally the fee decided in accidents and personal injury cases. This enables the clients to retain a lawyer even if they are not in any position to pay upfront initially.

In some cases, the fees are statutory. In social security disability cases, a set fee of 25% is generally charged on the recovery. In cases such as residential real estate contracts and closings, the money involved determines the legal fee charged by the lawyer. In these cases, though the work involved is almost the same, the lawyer charges more in case of higher priced houses. These are asset- based fees.

Basic legal fees are and should be reasonable under all circumstances. It is also advisable for the client to ensure that there is a written contract between him and the lawyer. There is also a provision for legal procedure in case of any dispute between the client and the attorney over fees.

By: Eric Morris

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