Suing a Family Trust

Friday, August 21st, 2009

Mary Bucksbaum Scanlan, an heiress of Bucksbaum shopping-mall clan has sued the family trust as well as its lawyers for breach of fiduciary duty and malpractice.  She blamed them for investment losses from her trust shares worth $300 million. 

The 40-year-old is a daughter of Martin Bucksbaum, who’s the late co-founder of General Growth Properties Inc.  She filed this lawsuit in Chicago U.S. District Court naming attorneys Earl Melamed and Marshall Eisenberg with their law firm named Neal, Gerber, and Eisenberg LLP.  Also included in the suit is General Trust Co., Bucksbaum family trust as defendants.

The attorney representing Melamed, Eisenberg, and their law firm is Atty. Stephen Novack, who claims that losses suffered by Bucksbaum family trust were truly caused by the souring stock market and the economy.  General Growth is based in Chicago - it manages and owns over 200 malls in the U.S. but it filed for bankruptcy (Chapter 11) protection in April carrying a debt load of $27 billion.

The lawsuit of Mrs. Scanlan alleges the attorneys (also the trustees) of breach in their fiduciary duties since they kept most of the assets of the trust in General Growth stock during the time that stock has declined in 2007 from $67 to $1 last year.  Allegedly, the attorneys also failed to inform her about the loans made to executives of General Growth with a total of $100 million.

Tags: attorneys, Bucksbaum, Chicago, Earl Melamed, Family Trust, General Growth Properties, heiress, law, lawsuit, lawyers, malpractice, Marshall Eisenberg, Martin Bucksbaum, Mary Bucksbaum Scanlan, Stephen Novack, stock, sue, trust
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Prescott-Based Family Trust

Friday, August 21st, 2009

A family trust based in Prescott made a request to Planning and Zoning Commission because it plans to lease and probably sell their vacant building.  The agent for Polland Family Trust, Eileen Fowler, said, “They’re just trying to make use of the building they have.  Commercial developments are lying on both sides of the aforementioned property.  It covers 16 acres adjoining Highway 69 (west side) between Bradshaw Mountain Road and Village Creek Boulevard.”

She was referring to Century Productions’ former home - 15 acres of family land near Prescott Country Club.  She added, “If we could sell this lot, we would want to push through with that.  Most of this building is located on a hillside.”

Fowler is acting as the family’s agent and she applied to the commission in order to rezone the land (coming from residential to commercial including minor-industrial planned area development).  Another request was separately filed for General Plan amendment coming from low-density residential and going to regional commercial for 2 acres because they’re outside the boundaries of town.  The planning staff recommends approval of these requests from family trust provided that they would keep a 200-foot natural buffer in between Prescott Country Club and the property.

Tags: Eileen Fowler, Family Trust, Planning and Zoning Commission, Polland Family Trust, Prescott, Prescott Country Club, property
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Your Will May be Fake

Thursday, August 20th, 2009

Many people are getting scammed when they seek assistance in writing their wills. A lot of solicitors can draft wills; however, these solicitors are not properly trained nor qualified to do so. In fact, there are many will-writers who don’t need to be regulated by Law Society before they offer their services.
According to a Liberal Democrat spokesperson for regulatory reform, enterprise, and business, Lorely Burt, “It’s no exaggeration that will-writing has now become a hunting ground for dishonest, incompetent, and fly-by-night operators.” Some offer a low fee but would keep adding extra charges for extra services and some involve outright scamming.

Since will-writers are not regulated, some problems also arise out of incompetence. For instance, an old lady wants to exclude her son from inheritance since he stole from her in the past. She made a will for her estate to be given to her care givers instead. But since she just used a will-writer who advertised in the local paper, her will was challenged by her son. And since it has been witnessed and drafted incorrectly, the will was declared invalid – effectively, she has no will and her son actually inherited everything after all.

Therefore, be very careful in looking for assistance to draft your will. To be safe, seek help from qualified estate planning attorneys. You can find many of them in online directories all over the web.

Tags: attorneys, directories, draft, Estate Planning, Law Society, Liberal Democrat, Lorely Burt, online, scamming, solicitors, web, will, will-writers, Wills
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A Father’s Secret Will

Thursday, August 20th, 2009

There was a case where the father died five years ago and a daughter discovered that there was a will kept secret from her by the solicitors.  It emerged that the solicitors were holding on the father’s will and the daughter was named as a joint executor together with the stepmother.  The child was never informed about this and it came as a shock to her when she discovered it.  The father clearly left everything equally to her and her stepbrothers but she did not receive any inheritance.

There might be a case for this or there might be none.  The first point is that if the father held joint property with the stepmother, everything could have passed automatically to her anyway, regardless of the contents of the will.  However, this is unlikely in second marriages, and if the will is valid, there’s certainly a slip-up when the father died and the will’s solicitors failed to inform the daughter of her rights.

In a case like this, the daughter can consult a lawyer and file proceedings to recover assets from the estate of the stepmother - the costs of these proceedings should be covered by the solicitors.  They may also bear costs of consequential losses such as capital growth and interest accruing to the assets of the stepmother.

Tags: daughter, estate, father, inheritance, joint executor, lawyer, losses, proceedings, rights, solicitors, stepmother, will
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Farmers Exemption from Estate Taxes

Wednesday, August 19th, 2009

U.S. House of Representatives (H.R. 3524) recently introduced a bill that will exempt family farms from federal estate taxes if the farms will stay with their respective families.  The bill is called Family Farm Preservation Conservation Estate Tax Act.  It was assigned to the Committee of House Ways and Means after being introduced by (D-Colo) Rep. John Salazar and (D-Napa) Rep. Mike Thompson.

According to Laurel Brown, the spokeswoman of Thompson, “The bill would defer estate taxes on conserved and agricultural land indefinitely, so long as it still remains in the family - this ensures that nobody would have to sell the land just to pay for the estate taxes.  Then Murray said that “So many family farms have been struggling until now.  This bill will encourage farms to remain in the family’s possession.  There aren’t too many left.”

The law governing agricultural estate taxes is expiring next year.  It’s expected to be replaced by another law in 2011 that would tax families blending the levels of 2001 and 2002.  This level is hard for a lot of family farms, which are typically asset rich yet cash poor.

The new estate legislation was endorsed by 28 farm organizations including Western United Dairymen, Western Growers, California Association Winegrape Growers, and California Farm Bureau Federation.

Tags: agriculture, bill, estate, estate taxes, farms, federal, John Salazar, Laurel Brown, law, legislation, Mike Thompson, U.S. House of Representatives
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Change of Estate Tax Law

Wednesday, August 19th, 2009

Wealthy residents from Connecticut usually flee to Florida in avoiding the estate tax in the state.  But now, they don’t need to do that because there’s a new law (House Bill 6802) enacted on Sept. 8.  The law states that deaths occurring from January 1, 2010 onwards, as much as $3.5 million worth of estates and gifts will be exempt from tax.  This raised the threshold for taxable gifts and estates from the existing $2 million level.

In Connecticut today, when the estate is exactly $2 million, there will be no estate taxes paid.  However, an estate of $2,000,001 pays Connecticut $101,700 in taxes.  Fortunately, this will change beginning 2010.  The new legislation will not only increase the threshold exemption, it will also reduce the rates by 25%.  For instance, a $5.1 million estate which currently pays Connecticut $402,800 will only pay the state $130,200 if the death occurred after year-end. 

This means that you can now stop avoiding Connecticut in planning and establishing your residence.  State Rep. (R-149^th Dist.) Livvy Floren said, “These changes may be considered good step toward the right direction.”  So if you’re a resident of Connecticut or you have real property there, you might want to revisit and make current your estate plan with an attorney soon.  

Tags: attorney, Connecticut, estate plan, estate tax, Florida, gifts, law, Livvy Floren, state, wealthy
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Benefits of Bowers Trust

Tuesday, August 18th, 2009

Frances Bowers, a Mannington woman, passed away in the year 2000.  Her family members have all passed away as well and they have compiled the largest fortune in the community - they’re famous for the second largest state district fair.

Bowers was on the First Exchange Bank board.  Her father was late George Bowers, owner of Warwick China Co. and Bowers Pottery Co. (two very prosperous businesses).  He died around 1940s and left his three daughters with a huge estate.  Frances was the last surviving offspring.  She’s a private and opinionated woman who traveled a lot.

Upon her death, a part of the family trust has been placed in George Bowers Family Charitable Trust - many students and organizations in the area benefited from this trust ever since.  People may not know that the family did a lot of good things to the community.  It’s like a federal government awarding to organizations that need funds yearly.  Also, it’s similar to an annual gift; but the surprise is who will reap the rewards. 

Although many organizations are applying, only so many can be given out each year.  For instance, this year, East Fairmont Junior High, Fairmont Senior High, Disability Action Center, Mannington Middle School, and Salvation Army were some of the lucky ones awarded with grants.

Tags: Family Trust, First Exchange Bank, Frances Bowers, George Bowers, George Bowers Family Charitable Trust, Mannington, trust
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Rethinking Anonymous Giving

Tuesday, August 18th, 2009

There are a few inconsistencies and pitfalls of giving anonymously.  Just last spring, there was news of a multi-million-dollar gift coming from an anonymous donor.  However, this picked public interest and extensive media coverage.  So even if anonymous donors ask a concealment of their identity from the public, the recipient of support may have legitimate interest to know the identity of the major donor, as shown in recent court opinions.

For now, this court ruling may be concerned only with affiliated foundations and educational institutions.  However, similar suits may come up in the future.  These recent series of gifts given anonymously may also spark a debate within philanthropic communities whether it’s appropriate to accept a gift from somebody whose identity has been concealed from the board of trustees and the institution’s president.

This admonition is sound, since nonprofits are under increasing public pressure and congressional scrutiny about funding sources and operations.  However, consider the reasons of donors for wishing to remain anonymous - not wanting to draw public attention to their wealth, concerned about being targets for other organization’s solicitations, and avoidance of questioning from their family.  Nevertheless, nobody can deny that the motives of anonymous donors are sometimes questionable and everyone would be better served if there’s full disclosure of gifts made to organizations.

Tags: anonymous, communities, donor, educational, foundations, giving, institutions, philanthropic
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Proposed Health Reform

Monday, August 17th, 2009

With all U.S. economy problems -surging bank failures, rising foreclosures, and high unemployment, you would think that the resolution for these crises would be focused on by Congress.  The legislators may have believed in a spin because they started new initiatives like cap-and-trade bill.  Now, they passed the health care reform (H.R. 3200).

Under the proposed law, there is a requirement for employers to offer a health plan and pay the premium (at least 72.5%) for their workers.  In addition, those citizens without insurance will be penalized by 2.5% tax.  Rich people will be punished further with surcharge - they wouldn’t be able to deduct the fee.

However, some bill critics claim that this will deny medical treatment that’s supposedly for the elderly and disabled.  When you look at pages 425-432, the bill authorizes conference payments between health care providers and patients to create “advanced care directive.”  Physicians will receive higher reimbursement rate when they participate, although this is not a mandatory plan.  This medical order may include hospice care, health care proxies, living wills, and other intervention details that the patient wants before the end of his life.

For most health care providers, they want to comply and boost revenue.  Incentive payments require data sharing with government under Physician’s Quality Reporting Initiative.

Tags: bill, Congress, crises, foreclosures, health care reform, health plan, high unemployment, legislators, living will, medical treatment, physicians
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English Family Trust

Monday, August 17th, 2009

Finance Minister Bill English is called by Labour to release his family trust details due to questions over his qualification for an accommodation allowance of $700 per week.  In Parliament yesterday, the arrangement was put under fire - to replace Prime Minister John Key, Gerry Brownlee was taking questions.  English qualified after he signed a declaration that states he has had no financial interest on a trust owning his family home.   

Pete Hodgson, Labour MP, said that the public should judge whether English controlled the family trust so he needs to release details of it, even if he deletes family names as appropriate.  Under Mr. Key’s office rules, it’s permissible to lease a family trust home and use it as ministerial residence only if there’s no pecuniary interest of the minister.

Officials took their concerns to Mr. Key’s office on whether English truly qualified for the rent allowance.  Mr. Hodgson said, “Gerry Brownlee confirmed in the house that it would depend on the structure details whether or not this trust passed the test.”   

As of March, the trust title was transferred to Mary, the wife of English.  The Endeavor Trust owns Karori property worth $1.2 million, and everything would be okay when English has certified no financial interest in it.

Tags: Bill English, Family Trust, Finance Minister, Gerry Brownlee, John Key, Karori property, Labour, Mary, Pete Hodgson, Prime Minister, trust
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Hershey and Cadbury Deal

Sunday, August 16th, 2009

Hershey family trust controls 80% of Pennsylvania chocolatier voting stake.  The biggest obstacle is that they wouldn’t likely agree to a deal with Cadbury because they wouldn’t want to dilute their stake significantly.  Kraft bid $16.73 billion for Cadbury, and there’s a wave of speculation out there that says Hershey will counter that with a higher offer.

According to an analyst from Stifel Nicholaus, Christopher Growe, “We believe that this transaction should be roughly 65% equity and financed at 12x EBITDA multiple to trump the proposed offer of Kraft.”  However, this high stock component may threaten Hershey’s trust control.

When Cadbury and Hershey discussed a 2008 possible merger, the trust balked.  There’s no reason to think that a lot has changed after a year.  Growe divulged that when Hershey’s former CEO, Rick Lenny, approached Cadbury with this combination, it led to his company exit.  Also, the trust has substantial control over the board of the company.  Recently, there were two board members who resigned due to new risk committee installation that oversees most of Hershey operations.

Hershey may offer more cash instead of stock to avoid this dilution issue.  But where would they find that cash?  The company has an $8.8 billion market value compared to Kraft which has a market value of $39.2 billion.

Tags: analyst, Cadbury, Christopher Growe, equity, Family Trust, Hershey, Kraft, merger, Pennsylvania, Rick Lenny, Stifel Nicholaus
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USA Death and Taxes

Sunday, August 16th, 2009

In Canada, there is deemed disposition of the fair market value of your property.  The increase in value starting from the date of purchase up to the owner’s death is taxable as capital gain on the financial tax return.  On the other hand, the system in the U.S. works differently.  They impose an estate tax that’s levied on fair market value across all property owned on date of death instead of deemed disposition with potential tax liability.

The future of the U.S. estate tax is the most talked about issue today.  At the end of the year, the current regime would be expired.  This issue is critically important to two groups of people: Canadians owning a U.S. property and U.S. citizens that are living in Canada.  This U.S. tax applies to all citizens, even to those living in other countries.  It also covers non-U.S. citizens who died with properties in the U.S. (like stocks in U.S. companies or U.S. real estate).

Currently, U.S. citizens have a $3.5 million exemption from their estate.  However, non-citizens, such as Canadians owning U.S. assets, would only be entitled to pro-rated exemption under Canada-U.S. tax treaty.  This means that when you have a worldwide estate (like a Canadian home for instance) that would total below US$3.5 million, you don’t need to worry about taxes - for now at least.

Tags: Canada, citizens, death, estate, estate tax, financial tax fair market value, market value, property, tax, U.S.
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Living Wills: Hard to do?

Saturday, August 15th, 2009

There was an idea gathering steam lately.  The G20 group of central bankers and finance ministers met in London over the week to require firm-specific contingency plans from systemic firms.  Due to the widespread chaos caused by Lehman Brothers’ bankruptcy last September, a lot of regulators are finding a way to unwind the global financial giants.  One way to do this is prepare for a “living will” to guide their orderly demise.

The concept had wide appeal.  This crisis convinced regulators and politicians of all colors to allow large financial institutions to fail without imposing huge burden on taxpayers.  This may be a possible alternative to an intrusive regulation as seen by bankers.  However, drawing up a “living will” in detail may be easier said than done.  According to Clifford Chance’s Simon Gleeson, it’s more important for legislators and regulators to establish resolution regime and cross-border crisis-management than for these individual firms to be prepared for their own demise.

Some issues posed by financial crisis may be politically challenging, and some may be intellectually difficult.  And, devising a “living wills” legal framework manages to be both.  If there’s any solution to deal with a future Lehman, it may still remain a long way.

Tags: bankers, Clifford Chance, crisis, financial giants, Lehman Brothers, living wills, London, ministers, regulators, Simon Gleeson, will, Wills
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Future of Estate Taxes

Saturday, August 15th, 2009

Legislative gurus, estate attorneys, and financial planners are bustling about the estate tax’s future.  A lot of people already know that under the 2001 EGTRRA (Economic Growth and Tax Relief Reconciliation Act), federal estate tax changed almost annually for the past few years.  In fact, it’s most likely to phase out entirely next year but will come back in 2011 if things don’t change in Washington. 

Currently, estate tax exclusion rests at $3.5 million (for married couples, $7 million) and top tax rate is at 45%.  When federal estate tax goes back in 2011, the exclusion would drop back - $1 million for individuals and $2 million for married couples, with top tax rate rising to 55%.

Today, most experts would agree that estate taxes are here to stay considering that budgetary challenges occupy congress and the current administration.  Also, economic crisis is still underway.  Legislation has been introduced to keep exclusion at current levels and marry this exclusion to lifetime gift tax exemption. 

At this point, it’s still too early to tell the ultimate fate of the current proposal and all others that are bound to be proposed during the coming months.  In the meantime, those in the know solidly believe that it’s important to revisit your current estate plan as well as undertake proactive tax planning.

Tags: attorneys, EGTRRA, estate attorneys, estate plan, estate tax, federal, financial planners, legislation, legislative gurus, proposal, tax planning, Washington
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Traits of Planned Giving Volunteers

Friday, August 14th, 2009

When you commit time in serving a special interest group or a nonprofit organization as a volunteer of planned giving, you’ll need a dedication like no other.  The difference is the essence of a gift - it reflects the history of the donor: the success, drive, and individual passion created in the particular situation.  Therefore, if you have a nonprofit organization, the first step to make it work is to find and retain planned giving volunteers.

Here are some key traits most common among successful volunteers:

1. *Competency - they know that being a volunteer in a nonprofit organization is a difficult task.  However, when they carry it out properly, they can provide long-term gratification to the institution and the donor.  If they have the experience and skill to make these connections, they would be glad to put their knowledge to good use.
2. *Time - since there’s not enough time to do all things that need to be done, they make choices to do only the things that have value.
3. *Relationships - establishing a legacy, giving back to the community, and meeting wonderful people are the respect and pride that they get.
4. *Self-satisfaction - the work allows them to extend themselves to a worthy cause beyond their everyday occupation.

Tags: community, competency, dedication, donor, nonprofit, organization, Planned Giving, relationships, self-satisfaction, time, volunteers
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Boomers Retirement Plans

Friday, August 14th, 2009

Times have changed, and the priorities come along with it.  This is true for the seniors and baby boomers as well.  Today, it’s more essential than before to plan your future given the increasing financial abuse received by seniors from caregivers or loved ones and the tough economic times.

Until now, the preceding American generation had been better off economically compared to their parents due to their inheritance, thriving economy, and job opportunities.  However, recent times don’t seem to be well.  It would be a good bet if the boomers will inherit a single title from their parents.  And the boomer’s children may even get less.

All these mean that seniors and boomers need to develop a plan for life, due to possible incapacity and inevitable death.  This planning process does not only involve “estate planning” or “financial planning” but “life planning,” “death planning,” “burial planning,” “nursing home or long-term care planning,” and even “pet planning” as well.

Creating and implementing these plans would need a huge multidisciplinary effort coming from a qualified team of professionals.  Among others, see a lawyer to help you handle your assets and complete your plan in case of incapacity, disability, and death.

Tags: American, baby boomers, death, disability, Estate Planning, incapacity, lawyer, priorities, seniors
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University’s New Planned Giving Director

Thursday, August 13th, 2009

There is a new planned giving director at University of Arkansas.  Renee Brida from Little Rock will be holding office in university development and reporting to Jim Harris, the executive director of gift planning and estate.

Prior to joining the development team, Brida spent almost five years as estate planning attorney for Little Rock’s Haught & Wade LLP.  She held a lot of fundraising positions in Little Rock including Arkansas Children’s Hospital, Pulaski Academy, and East Inc.

Through these positions, Brida was the one responsible for providing legal counsel in relation to organizational processes, developing a program for planned giving, planning & executing special events, running a fund campaign annually, and cultivating major gifts.  She holds a Psychology and English bachelor’s degree from University of Texas and earned Juris Doctor from San Antonio’s Mary School of Law.

Harris said, “Renee’s experiences as a development officer and attorney make her an idea candidate in leading the planned giving office.  She understands that working with friends and alumni as well as raising private gift support create plans that would work best in every unique situation.  So I have the highest confidence that she would do a good job of taking the planned giving efforts of the university and building new relationships to the next level.”

Tags: attorney, counsel, director, Estate Planning, Jim Harris, legal, Little Rock, Planned Giving, Renee Brida, University of Arkansas
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Description of a Planned Giving Volunteer

Thursday, August 13th, 2009

When you talk to existing planned giving volunteers, you would find out a lot of things about the association.  Typically, these planned giving volunteers are well-read, they understand the non-profit’s strategic goals, and they’re educated in finance administration.  Attracting good volunteers is always an on-going task in any nonprofit organization.  In fact, the main task of the organization could be to determine what specific things they can offer to the volunteers in their area.

When a volunteer speaks from the heart and from experience, and he or she has already given a planned gift to the institution, then you have a very powerful spokesperson.  This planned giving volunteer realizes the substantial donation value and understands the gift’s gravity.  Based on personal success, they’re emphatic and inquisitive without being forceful.  They’re able to communicate excellently to the benefiting community as well as to the potential donors.

Planned giving volunteers are powerful advocates that you can find for your organization.  They’re the best way to exhibit humility and grace as they work with donors that make monumental gifts.  These gifts will in turn continue the vital services of your nonprofit and provide you with a steady support source. 

Tags: advocates, association, donors, finance, goals, nonprofit, organization, Planned Giving, support, volunteer
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Local Fundraisers Benefit Disability Group

Wednesday, August 12th, 2009

From a donation of a fundraising group, a group of people with physical and learning disabilities enjoyed a great day out on North Yorkshire Moors Railway.  The day was organized by Rotary Club’s Pickering District for Wilf Ward Family Trust service users, with lunch as well as a railway trip.

There were more than 40 support workers and service users who took part in this outreach.  Several Rotary Club members also attended to make sure that the day went well.  The treasurer of Pickering District, John Fields, is pleased to support Wilf Ward Family Trust.  He said “It’s the second time this was done and so far, it was a great experience to see many local people that enjoy the local fundraising we do.”

On this day out, service users coming from Scarborough, Norton, Malton, and Pickering made the trip.  The chief executive of the Trust, Richard Pick, said, “The day turned out great for service users and a big thank you is in order for Rotary Club and all their supporters.”  Wilf Ward Family Trust is a Pickering-based trust that offers a wide range of services for those people with social care needs.      

Tags: donation, fundraising, John Fields, North Yorkshire Moors Railway, Pickering, Richard Pick, Rotary Club, trust, Wilf Ward Family Trust
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Ridglea Theater Trust Deadline

Wednesday, August 12th, 2009

A bankruptcy judge from Fort Worth gave R.K. Maulsby Family Trust trustee until Nov. 4 in order to sell the historic Ridglea Theater located on the west side of the city even for just a pending deal.  Otherwise, they shall face foreclosure.  Doug King, the trustee, told Russell Nelms (the bankruptcy judge) that he has accepted a contract from the buyer putting down earnest money of $50,000 and then paying $1,075,000 for the property.

King said that selling the property would generate enough money to pay the creditors.  However, he declined to name the buyer after the hearing.  As the only asset of Maulby’s Trust, it filed for a Chapter 11 protection to prevent property foreclosure.  Dallas’ FixFunding posted the property for a possible foreclosure because it’s behind on its payments for a $1.1 million loan.  It also owes $260,000 to TaxEase.

Nelms said “Under that contract, I gave a chance for the debtor to perform.  However, it’s a short lease.  There will be dismissal of the bankruptcy case on Nov. 4 if the contract will fall through.”   Chad Berry, the attorney representing FixFunding and Elizabeth Zieglar, the trustee of federal bankruptcy court, asked Nelms to dismiss this bankruptcy case and argued that the family trust has no valid business purpose.

Tags: attorney, bankruptcy, Chad Berry, Doug King, Elizabeth Zieglar, Family Trust, FixFunding, foreclosure, Fort Worth, judge, Maulby's Trust, Ridglea Theater, Russell Nelms, trustee
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Procrastinating is a Bad Habit

Tuesday, August 11th, 2009

When faced with a difficult decision, people naturally procrastinate.  For instance, only 40% of people have an up-to-date will according to Visa Inc.’s recent poll.  A will is certainly not mandatory - although you don’t have to have a will when you die, you wouldn’t want to leave important decisions about your health and finances to strangers would you? Therefore, address these issues now and spare your family from dealing with them.

Consider hiring an estate planning attorney to draft and review your documents.  They can help you decide whether to create a simple will or come up with complex documents such as trusts involving large assets or complex estates.  Here are some things you need to do:

• *Before naming a power of attorney or executor, make sure they’re up to the task.
• *Name alternate executors and beneficiaries in case someone would die before you.
• *Compare trust or will beneficiaries to those named in your retirement or insurance plans to eliminate conflicts.
• *Review documents periodically, most especially when your family situation changes (death of a beneficiary, new child, divorce, or marriage).
• *Date, sign, and notarize documents as well as file them for safekeeping.

Tags: attorney, beneficiaries, documents, estate, Estate Planning, executor, family, procrastinate, strangers, trust, will
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Transfer through Register of Wills

Tuesday, August 11th, 2009

Take this scenario: In 1993, a mother passed away.  She is a widow with only one son.  The son and his wife have been living inside the family home since 1990.  The mother did not leave a will and the son didn’t try to change the title.  Fortunately, the insurance and taxes are up to date and the mortgage is paid off completely since 2001.

Now, the son wants to change the title to his name.  But the problem is, he waited too long to do it.  Nevertheless, he can still work around it.  His first step would be to appoint himself as his mother’s estate administrator.  Then, he can transfer the property to his name.  He has to go to the office of Register of Wills and seek help.  There, he will get the necessary administrator appointment.  He has to bring his birth certificate and the death certificate of his mother to expedite the process.

Most likely, there will be an inheritance tax due commensurate for the property’s value at date of death.  Some say, however, that you can appeal to abate the mentioned penalty.  Seek the help of a lawyer to guide you through the transfer and give you advice on the best course to take.

Tags: administrator, certificate, estate, inheritance tax, insurance, lawyer, mortgage, mother, Register of Wills, taxes, title, widow, will
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Guide to Estate Planning

Monday, August 10th, 2009

Many would just watch their bills add up and portfolios dwindle.  Because of this, it’s very tempting to put off future planning.  However, experts caution that everybody needs to sit down in planning their estate.

According to the co-owner of a Seattle-based financial services practice called Sound Financial Partners, Debbie Whitlock, “Whether you’re debt-laden or wealthy, you should not just tell your loved ones how you want to handle your estate, you should put it into writing.”  Also, estate planning is not just about distributing cash.  It’s also making sure that your heirs don’t end up liable for all your debts.  In addition, you would prevent your loved ones from being saddled with funeral costs without hope of reimbursement, or sometimes it could take years of lengthy court process before they are reimbursed.

Planning for your estate could also be a way for you to determine what your life needs and goals are.  Do you want to ensure that your niece’s college education is paid for?  Or do you dream of giving a trust fund to your favorite charity?  Are you sure that you can still stay in your current house when your partner dies?  These are questions that can be answered with estate planning.

Tags: Debbie Whitlock, estate, estate plan, Estate Planning, goals, needs, planning, Sound Financial Partners, trust
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Never Ignore Estate Tax Planning

Monday, August 10th, 2009

At this point, a high percentage of Americans don’t need to worry about federal death tax.  Federal government allows tax-free exemption up to $3.5 million net worth for individuals and $7 million combined for married couples if they do some basic planning.  When they don’t have a basic estate plan, they could miss this full exemption and actually pay a seven-figure tax bill.

Currently, the federal law is hoping that in 2010, all states would pass this estate-tax-free.  However, off-the-record word from Congress says that there’s no way this law will survive 2009.  The states are re-evaluating their existing death tax rule.  There are some states that have no death tax, such as Florida.  While others, like Massachusetts or Connecticut have death taxes as high as 10% for a one million estate.

Therefore, it’s foolish to ignore the issue of estate tax.  Imagine people evading the local sales tax in their state, purchasing in another state, moaning about their annual income tax, yet doing nothing to plan for the largest tax they’ll ever pay?  It sounds ridiculous but it’s so common.

Ben Franklin may be right when he said “There are only two guarantees we have in life - death and taxes.”  And when death comes, taxes are voluntary.  Therefore, plan your estate wisely.

Tags: Americans, Ben Franklin, death, death tax, estate plan, Estate Planning, estate tax, federal, law, tax
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Planned Giving Gifts in spite of Economy

Sunday, August 9th, 2009

Donors to charitable organizations such as Wayland Baptist University are reluctant to dismiss any liquid assets.  If invested funds and retirement plans tanked with the market somewhat, it will only add to the uncertainty.

However, it doesn’t mean that you’ll strike off the university from your generosity.  In fact, while thinking of your own, you may want to consider contributing to Wayland’s future.  An ideal way for you to do this is through planned giving.  You can support Christian higher education and leave a gift down the road to the university.  So no matter how large your estate is, it’s a good move to plan ahead.

When you put the university inside your will - whether you give certain assets, a percentage or your estate, or your entire estate - these are planned gifts.  People who want to leave a legacy in the future actually have several options to do so: provision by will, charitable remainder annuity trust, charitable remainder unitrust, gift annuity agreement, retirement plans, charitable lead trust, revocable living trust, and planned gifts.

According to Martha Cross, the director of major gifts for Wayland, “If you don’t make future plans, somebody else will decide what will happen to your things and your money.  Better do it yourself rather than allow someone who doesn’t know your heart do it.”

Tags: estate, funds, legacy, Martha Cross, planned gifts, Planned Giving, retirement, trust, Wayland Baptist University, will
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Philanthropy Honored by Planned Giving Council

Sunday, August 9th, 2009

Applications for the much awaited Philanthropy Day Awards have been released, as announced by Planned Giving Council Acadiana (PCGA).  In union with National Philanthropy Day, this is the eighth year that PCGA gave awards in three categories: Outstanding Fundraising Volunteer, Outstanding Philanthropic Organization, and Outstanding Philanthropist.

Individuals or organizations who wish to recognize the active people in philanthropy should submit a nomination.  The awards will be presented in November 10 at UL Alumni Center in conjunction with the celebration for National Philanthropy Day.  If you want to nominate a philanthropist, you can download an application from PCGA website under the tab named “activities.”

PCGA is a nonprofit organization that provides a forum for planned giving ideas exchange in Acadiana area of Louisiana.  Its mission is to ensure that donors of planned giving in communities are professionally served.  Also, there should be satisfaction of their philanthropic interests in conjunction with the general financial and estate plan.

Since 2002, past honoree include Alfred Lamson, Robert Trahan, Paul and Lulu Hilliard, Jackie Edgar, Bo Ramsay, and Sharon moss as outstanding philanthropists.  The outstanding fundraiser volunteer award has been given to James Prince, Phena Guidry, and Joe Klutts among others.  Lastly, Special Children’s Foundation, Blue Cross Blue Shield, and Junior League of Lafayette were among the winners of outstanding philanthropic organizations award.

Tags: Acadiana, Louisiana, National Philanthropy Day, nonprofit, organization, PCGA, philanthropist, Philanthropy Day Awards, Planned Giving
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Murdoch Family Trust

Saturday, August 8th, 2009

Rupert Murdoch, chairman of News Corp (NWS) has three wives and six children.  In addition, he also has two living sisters, a 100-year old mother, one deceased sister, and a father who passed away in 1952.

His biographer, Michael Wolff, divulged more facts about the Rupert’s family.  He said that Rupert’s first wife is Patricia Murdoch.  She was an intern at his paper but the family disapproved this marriage so it lasted only from 1956-1967.  Then during the recession from 1990-1991, Rupert’s wife was Anna Torv Murdoch and he promised her that he will retire as soon as the company goes out the mess. 

Unfortunately, this didn’t happen because in 1999, the couple was divorced.  Then on the same year, Rupert was married to Wendi Deng, a young executive in News Corp where he had two more children later on.  Everybody could have been happy except that when Rupert was divorced, he left the voting shares of his News Corp to a trust controlled by four of his children - called the Murdoch Family Trust.  In addition, he agreed to Anna’s stipulation in the trust that no new children should be admitted to this trust.

But Wendi can’t accept this arrangement and so a new one has to be created.  Suddenly, the kids of Wendi are now allowed into Murdoch Family Trust (without voting participation).  Rupert also paid $150 million to each of his first four children.  

Tags: Anna Torv Murdoch, chairman, children, Michael Wolff, Murdoch Family Trust, NWS, Patricia Murdoch, Rupert Murdoch, trust, Wendi Deng
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Retirement and Tax Law Changes in 2010

Saturday, August 8th, 2009

This fall, advisers of people who are planning for retirement will hear changes in federal law which can have a huge impact when it comes to their financial plans.  According to a taxation and estate planning professor emeritus at Northwestern University Law School, Roy Adams, “Things that will happen in the succeeding months could cause the biggest changes in the estates and trusts fields.”  From estate tax to Roth IRA conversions, there’s a lot to consider on the horizon for individuals who will leave inheritance to their heirs or to charity, ensure continuation of their family business, and have enough retirement money.

Adams will explain these changes in his presentation at Minneapolis Convention Center on September 14.  At the heart of these changes is estate tax.  In one year, it’s scheduled to be repealed and in 2011, its 2000 version will be followed.  There will also be changes in gift tax and estate rules.  Therefore, these changes could have a huge impact on heirs and family-owned businesses as well as affect gift taxes and charitable contributions.

Furthermore, income limitation to convert 401(k) accounts, 403(b) accounts, and regular IRAs to Roth IRAs shall be removed in 2010 and will be opened up to wealthy individuals.  It is expected that many would want to capitalize on an opportunity like this.   

Tags: charitable, estate plan, estate tax, federal law, gift taxes, income, law, Minneapolis Convention Center, Northwestern University, retirement, Roy Adams, taxation, trusts
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Things to Do Now

Friday, August 7th, 2009

All of us must face the reality that we are going to die.  Therefore, make sure that your final wishes have already been taken cared of.  Here’s a list of things you should do now (in no particular order) just because you need to do it before you pass away:

• *Pre-pay and pre-plan your funeral arrangements.  Just contact a local funeral home and discuss to them what you want to happen in your funeral including the costs and the ways you can pay for it.
• *Get a trust or will to take care of your estate after death.  Do not try to do this over the internet.  You’ve got to see an attorney to ensure that the trust or will is in place and to guarantee that your estate will be surely handled the right way.
• *Also get a durable and health care power of attorney in place.  These could help you avoid messy health and financial problems.
• *Write your own obituary.  It’s hard for your survivors to think of all your life details during the time of grief.  Since you know these better than they do, you’ve got to do it now.
• *If you’re receiving life insurance or retirement money, make sure that you check your beneficiary designations or notify the company if you have any changes in beneficiaries.
• *List the people that you’d like to notify of your death - these may be family, friends, pastor or priest, employer, business associates, etc.
•  

Tags: attorney, beneficiary, death, estate, funeral arrangements, funeral home, health, obituary, trust, will
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What Do You Need?

Friday, August 7th, 2009

A Harris Interactive poll (2008) found that 55% of adults don’t have wills.  Maybe some don’t want to think about dying, but the truth is: majority doesn’t know how to start one or who to talk to.

An estate plan may be as simple as creating a will or it could also be as complex as building up a living will or trust.  You can talk with a qualified attorney to be enlightened on this but remember that it’s important to create one because you want to ensure the destiny of your assets as well as your children.  When you don’t have any of these, the state will have a free hand on where to take your money and your children along with it when you pass away.

Choose what you need.  A will is an instruction document that states your assets and the individuals or institutions where you want to give it to.  Most wills go to probate after your death.  A probate court will oversee inheritance distribution and debt payment.  A living trust sets up conditions on when and how to distribute your assets.  This will help reduce the taxes paid and avoid probate.  Finally, a living will provides an assignment of medical power of attorney given to a person you trust.

Tags: assets, attorney, death, estate plan, Harris Interactive poll, living will, probate, state, trust, Wills
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Estate Planning Options

Thursday, August 6th, 2009

In Wisconsin Statutes, the Ch. 770 addition encourages more same-sex couples to have more options to estate planning.  However, attorneys say that there are still a lot of questions to answer.  Michelle T.L. Hernandez, an attorney for Krueger & Hernandez shares that she has been receiving several calls about this process ever since the application for domestic partner declarations have started on August 3.

Over 400 couples have already filed for declarations - this means that same-sex domestic partners may inherit assets pursuant to state intestacy statute.  They may also sue a wrongful death of a deceased partner.  Hernandez said that this niche is still small.  As more couples register, she expects an evaluation whether she would change their trusts, wills, and estate planning documents and incorporate the new law benefits.  “I think attorneys implementing plans for domestic partners as well as those handing partnership termination will find this new area to be a brand new and hot law.”

Many attorneys are now encouraging their clients to apply for this domestic partnership status.  Same-sex partners will find that the new law provides a few “unique” opportunities in estate planning that is not available to them before.  This includes the ability to obtain the partner’s property, vehicle, or home in the event of death.    

Tags: assets, attorneys, death, declarations, Estate Planning, Krueger & Hernandez, law, Michelle T.L. Hernandez, partnership, same-sex couples, Wisconsin
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Legislation Complicates Taxes and Estate Planning

Thursday, August 6th, 2009

Florida Bar requires Florida attorneys to report a certain number of CE (Continuing Education) credits each year.  Most teleconferences and online meetings cost around $100.  So it’s a treat when a sponsor, Regents Bank, came in and paid for a series of lectures from Cannon Financial’s Attorney Roy Adams.  The bank offered local attorneys the chance to attend free, meet their staff in trust department, and receive CE credits for two hours.

Adams is a well- respected and known by estate planning attorneys in the area of speaking every January at Heckerling Conference in Orlando.  The event is attended by over 2,000 attorneys.

One of the topics was the several pending estate tax legislation in Senate and the House.  Most people will not be subject now to estate tax but when the unified credit amount or lifetime exclusion is $3.5 million (less gifts made) per person, this may reduce the lifetime exclusion (it may also be $7 million for a couple if properly planned).  If the lifetime exclusion will be reduced to $1 million (which is already scheduled after 2010) and new legislation doesn’t change the existing law, there is no estate tax.

However, many legislators feel that eliminating estate tax (even for only a year) will greatly contribute to increase of federal deficit - this will eventually be paid back by the taxpayers in the future.

Tags: attorney, attorneys, Cannon Financial, CE, Estate Planning, estate tax, Florida, Heckerling Conference, legislators, Orlando, Regents Bank, Roy Adams
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Never Let Donors Drown in Planned Giving

Wednesday, August 5th, 2009

The American Council Gift Annuities (ACGA) recommends that people invest on a portfolio with 5% cash, 40% equities, and 55% bonds.  Individuals who are looking for security are more open to CGA (charitable gift annuities) because there’s stock market volatility.  In the meantime, this market may be wreaking havoc on charity’s annuity reserves, where a portion is usually invested in equities.

The senior vice president of The Sharpe Group located in Memphis. Tennessee, John Jensen, is expecting more nonprofit boards to look at annuity reinsurance.  He said “A charity locks whatever losses it had.  But is it smarter to do this?  You wouldn’t reinsure if you’re thinking that the market would come back, but from a standpoint of risk management, you wouldn’t want that exposure, or you don’t think the market is coming back, then you reinsure.”  

“What we’re hearing is that charities are so nervous and now they’re doing risk assessments and looking at gift annuity programs,” said Tanya Howe Johnson who’s the CEO and president of PPP (Partnership for Philanthropic Planning) in Indianapolis.  She further added, “It might become popular to reinsure a gift annuity which is something that nonprofits would do occasionally.”

A large pool consisting of gift annuities minimizes the charity risk.  Therefore, if one gift annuity would go under water, the more charity risk would be spread out if the annuity pool is larger.   

Tags: ACGA, annuity, CEO, CGA, charity, equities, John Jensen, Memphis, Planned Giving, PPP, risk, Tanya Howe Johnson, Tennessee, The Sharpe Group
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Planned Giving Marketing Impacts Legal Ruling

Wednesday, August 5th, 2009

There was an opinion issued by U.S. Court of Appeals involving Robert Dillie in a case that charged him with operating a fraudulent foundation from 1996 to 2001.  The foundation was actually in a ponzi scheme issuing $55 million gift annuities to more than 400 donors - these were sold through investment advisers receiving commissions on each sale.  The opinion was issued this past June and M. Dillie is now serving a prison sentence of 121 months.  However, the legal fallout from the operation lives on.

Due to return of commissions ruled by the lower court, investment advisors sued the receiver who’s assigned to recover the remaining funds and repay defrauded donors.  However, Federal Court of Appeals concurred with the rulings of the lower court and rejected the arguments of the investment advisers’ lawyer.

Truly, the underlying facts of this case were unique.  And the ruling’s significance is how the gift annuities were viewed by the Court in light of marketing techniques used.  When the court looked at various promotional advertisements used, it was clear that the gift annuities were actually investment contracts.  Therefore, charities should be careful in marketing their gift annuities or other life income vehicles.  Make sure to emphasize that these are gifts first and foremost.

Tags: commissions, court, donors, foundation, gift annuities, lawyer, Planned Giving, Robert Dillie, U.S. Court of Appeals
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Allan Scott’s Estate in a Family Battle

Tuesday, August 4th, 2009

As a trucking magnate, Allan Scott accumulated an estimated $600 million estate.  His two favored children will receive a big bulk of this empire.  However, there is a current rift developing within his family due to the fortune he left behind.

A source close to the Scott family said that some relatives have been angry that Mr. Scott short-changed his grandchildren, as only three were explicitly mentioned in the last will.  The source said that “Zena’s got all the power and money so she can do whatever she likes.”  Due to this some relatives are filing a legal challenge.  On the other hand, his widow, Grace Scott, have not yet seen a copy of the will.  She said the family kept her in the dark about the inheritance.  “I’m very illiterate when it comes to this legal stuff,” she commented further.

Mr. Scott died of heart failure and left all his wealth and business in the hands of his two children, Raymond and Zena as well as lawyer and business associate Tony Johnson.  His will acknowledged that Raymond and Zena should receive a greater portion of his estate because they spent their effort, time, and goodwill to contribute a lot to the business.

Tags: Allan Scott, business, empire, Grace Scott, lawyer, legal, Raymond, Tony Johnson, trucking, will, Zena
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Ensure your Preferred Medical Care

Tuesday, August 4th, 2009

The main problem with estate plans today is that they don’t have any documents for health care.  Another serious problem is that they don’t understand the documents they have, or worse, they have the wrong documents.  Here are some documents you need to make sure that your wishes are followed:

• *Living Will - very simple to execute as most states recognize living wills officially.  The idea behind this is to avoid certain levels or types of care (also known as “heroic measures”) in different circumstances.  A very simple living will would state “I don’t want to prolong my life through any artificial means if I contracted a terminal illness with no hope for recovery.”  Although following this statement may result to a debate (since there is no exact definition of a terminal illness), it’s still necessary to guide your relatives on what to do when you’re brain dead or in a vegetative state.
• *Do not hospitalize/resuscitate order - DNH and DNR orders are common for older people in frail conditions, most especially those in nursing homes.  These people preferred to be in the comfort of their homes rather than pass away in a hospital.
• *Power of attorney/health care proxy - a document that appoints a person or several people to make the medical decisions when they’re unable to do so.

Tags: DNH, DNR, documents, health care, health-care proxy, living will, plans, power of attorney
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Never Procrastinate

Monday, August 3rd, 2009

When faced with a difficult decision, people naturally procrastinate.  For example, planning on your own demise is the most common thing that you delay until it’s too late.  Remember that wills are important even if they’re not mandatory.  Your affairs will be decided by the state if you don’t have a will when you die.  And worse, someone else will make your healthcare and financial decisions when you’re no longer able to make it on your own.

Here are some of the negative consequences when you don’t make a will:

• *Your preferences for burial instructions and life-support procedures may not be exactly followed.
• *The state may decide over your minor children’s guardianship.
• *A court-supervised probate may hold your estate which can result in costly fees.

To prevent these scenarios, you need to prepare any or all of the following: Will, Revocable Living Trust, Durable Power of Attorney (both financial and healthcare), and a Living Will.  Remember to date, sign, and notarize them for safekeeping as well as review them periodically most specially if there are changes in your family situation (death of a beneficiary, new child, divorce, or marriage).  To further eliminate conflicts, compare the trust or will beneficiaries to the ones named in your retirement plans or insurance.

Tags: decision, durable power of attorney, fees, financial, guardianship, healthcare, living will, planning, probate, revocable living trust, state, trust, will
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Estate Planning Prevents Family Feuds

Monday, August 3rd, 2009

Augusta’s Randolph Wade Jr. takes his obligation to his family very seriously.  Several years ago, he prepared a will and now that he’s 70 years old, he is sure to protect the ones he left behind.  “You’ll never know when you’ll reach the road’s end,” Wade said.  “All of a sudden, it could happen.  Time and time again, I’ve seen how much chaos there will be if the will is not placed in a proper way.  Since some folks waited too long, it’s been a disaster if their loved ones will be left behind.  For me, I want all my children to be very happy.  That’s why I want to leave them in good shape.” he added.

According to a lawyer, Judith Becker, “Many fail to plan for their estate because they don’t want the subject of dying as a thought.  However, the worst thing that a person can do is to procrastinate.  It would be a huge problem for them if they do this.”  

Mr. Wade has a son and two daughters.  In addition, his wife also has one daughter.  They’ve combined all the children in the will.  All of them are named executors in a specific order.  “For blended families, planning ahead is particularly important,” he concluded.

Tags: Augusta, blended families, lawyer, planning, Randolph Wade Jr., will
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Taking Family Trusts to the Next Level

Sunday, August 2nd, 2009

Beneficiaries of family trusts (oftentimes referred to as discretionary trusts), typically have no entitlement to assets held in trust, not until the trustee would exercise his or her discretion and distribute capital or income in their favor.  For example, when a father passed away, his wife may inherit the house or other assets that form part of his estate.  Then, the children (if they’re not minors) would usually take control of the trust and business.  However, trusts commonly have beneficiaries who are creditors too - this part is most often overlooked.

The reason that family trusts (especially those that carry business) tend to have creditors as beneficiaries is because the trustee would be taxed on the debts with a 46.5% flat rate unless he or she distributes all profits, earnings, and realized capital gains in a financial year.  This is one of family trusts’ benefits - the ability to stream the various classes of income and give it to most appropriate beneficiaries so that in the end, a lower tax amount is paid generally compared to business structures where the owners have fixed settlement.

Ideally, a succession plan requires a solicitor, accountant, lawyer, and financial adviser working together.  This will encourage a smooth facilitation so that the estate plan is complied with in a timely manner.

Tags: accountant, beneficiaries, capital, creditors, discretionary trusts, estate plan, family trusts, financial advisor, income, lawyer, solicitor, sucession plan, trust, trustee
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Understand Estate Planning

Sunday, August 2nd, 2009

In spite of recent financial setbacks, a lot of people are claiming to be better off financially compared to five years ago.  That’s why when a group of financial expert asked novices in the investment arena what estate planning they have done in the past, they were surprised that there was no affirmative answer.  Most people looked perplexed and raised their eyebrows.  It seems that they’re confused whether the expert mean setting up a trust or drawing up a will.

The expert asked not to be named but he said “It’s very interesting to find out that most people have never heard of the estate planning concept.  And even those aware of it have not taken it seriously.  However, it’s going to be a very serious issue when people get richer.” 

Moreover, the director of Transcend Consulting, Kartik Jhaveri pointed out that “We’ve been trying to spread the concept so that a lot of people are aware of it, but we don’t get a lot of queries.”  Therefore, a wealth manager concluded that “People usually find estate planning difficult to grasp.  So it’s much better for us to talk about different concepts of financial planning (such as retirement planning) to explain things to people.”

Tags: estate plan, Estate Planning, financial, Kartik Jhaveri, Transcend Consulting, trust, wealth manager, will
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Transferring Real Estate Title

Saturday, August 1st, 2009

When you own property in another state, the only way that you can avoid probate proceedings is to prepare and record a new deed that will transfer the title to include joint owners.  These owners may be your beneficiaries such as your spouse and children.  You can also transfer the title to a revocable trust or to entities like partnerships, limited liability companies, and corporations.

When out-of-state real estate’s title is transferred to a trust, the title will not be held by an individual but by a trustee.  So even when the individual dies, the trust will still continue.  Same thing for transferring to an entity - it’s the entity that holds the real estate title and not the decedent.

While these are simple procedures, there are a few downsides to a joint ownership.  Any lease, mortgage, sale, or other transactions that involve the property require unanimous consent of every owner.  Another disadvantage is this: the interest of any joint tenant is exposed to creditors’ claims.

And if your property is a pied-a-terr in Paris or an island villa in Antigua, you need to consider estate tax systems and probate in foreign countries.  Therefore, your attorney needs to work with a lawyer in a foreign jurisdiction for proper coordination and inclusion of the property in your estate plan.   

Tags: attorney, estate plan, joint owners, lawyer, probate, property, revocable trust, tax systems, transfer title, trust, trustee
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Estate Plan for Faraway Real Estate

Saturday, August 1st, 2009

Do you have a condo in a ski country?  Maybe you have a house at any shore or a Florida time share?  So how much real estate do you have in several states?

No matter where your real estate is, your properties will be involved in your estate settlement unless you make some arrangements to your estate plan and avoid this complication.  Real estate law is a state law.  This means that only the courts in a particular state can have the authority in resolving issues about ownership and title of real estate property in that state.

So if you’re a Pennsylvania resident and you own a Florida condo, your estate settlement will require Pennsylvania domiciliary probate and a Florida ancillary probate when you pass away.  Take note that ancillary probate is always required in each state wherever you own real property.

The simplest way to eliminate the probate proceedings requirement is to title the real estate in joint names of your intended beneficiaries (probably with your spouse and children).  This is a simple device which means that in the event of your death, the real property will automatically pass to the joint owners without any probate proceeding requirement.

Tags: beneficiaries, courts, Estate Planning, Florida, owners, Pennsylvania, probate proceedings, real estate
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