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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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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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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Planned Giveaway of Free Clothing

Monday, June 29th, 2009

On July 11, local residents of Olean, New York, are hosting a large giveaway of food, appliances, and clothing.  This event will be held at 647 S. Union St. South Side Chapel from 9am-1pm.

David Herne, the chapel’s current pastor, established this ministry in 1991.  South Side Chapel is currently under the umbrella of Heritage Aflame ministries.  Paula Ayers, the ministry coordinator, said that they have been shelving clothes since mid-1990s.  She said, “We had property in Bolivar (Main Street) in 1994.  One side of that property was turned into a coffee shop while the other side was converted into a youth game room.  Then, we saw a need for burned out people who need clothing, or for women thrown out by their husbands.”

So they got the property across the street and opened a donation clothing store.  Volunteers sell clothes at quarter and dime prices, “for people who don’t have much money, being able to buy clothing for their kids gave them pride.  But for fire victims or people who truly can’t afford to pay, the clothes have always been given for free,” Ayers concluded.

Rose Levia, a volunteer and member of South Side Union Chapel says, “More volunteers are welcome.  All donations from anyone will also be accepted.”

Tags: Bolivar, clothes, donation clothing store, giveaway, Heritage Aflame ministries, Main Street, New York, Olean, Paula Ayers, Planned Giving, property, Rose Levia, South Side Chapel, volunteers
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60% of Canadians Don’t Have Wills

Saturday, June 27th, 2009

The chance of catching a fire in your house is only one-in-230; but people are lining up to get property insurance, just to be sure.  Meanwhile, the odds of death are one-in-one; despite this, over 60% of Canadians do not have a will or even a comprehensive estate plan.  This is according to Society of Trust & Estate Practitioners.

Maybe it’s an issue of facing mortality or not wanting to place a burden to the family.  Most of the time, people don’t see any immediate benefit of planning for the estate, or sometimes, they just don’t know where to start.

Everyone should make a will, regardless of your wealth.  An estate is everything you own - this includes property, investments, and real estate.  At the same time, it also includes all the debts you owe.

The objective of most people is to make sure that their family is financially secure when they die (though in some cases, beneficiaries may also include charities or non-family members).  So an effective “will” does not only make sure that it states clearly who should get what, but rather, distributes the assets tax-effectively and efficiently.  It’s also critical that your assets are managed before you are incapacitated or ill.

The first step would be to pull together a team of experts to guide you.  It’s recommended that you include a financial adviser, tax professional, and a lawyer, who can be your overall coordinator.

Tags: debts, estate, estate plan, experts, financial adviser, investment, lawyer, property, real estate, tax professional, wealth, will
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Advantages of Revocable Family Trust

Sunday, June 21st, 2009

A trust can only be effective if you own the title to the asset or property.  Remember that when you transfer your assets’ title into trust, it’s called “Funding your Trust.”  And when assets are already moved, then there’s no need for probate because the control of the estate is now transferred to the trustee.

Here are some advantages of using revocable family trust:

• -If ever an accident or illness leaves you incapacitated, then your successor trustee would be able to handle your financial affairs - the court will not need to appoint any conservator or guardian.
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• -If beneficiaries are minor children, the trust continues to hold assets until the children reaches a more mature age.
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• -If you own real estate properties in several states, you can avoid the hassle, time, and expense of multiple probate proceedings.
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• -Husbands and wives can maximize federal estate tax exemptions.
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• -Trusts are more difficult to contest compared to a traditional will. In order to invalidate it, either you prove that it’s signed under duress or the maker was incompetent during the signing day.
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• -It’s almost impossible to contest family trusts. When wills are contested, the assets are usually frozen, however, assets placed in family trusts can still be distributed pending the legal challenge outcome.

Tags: advantages beneficiaries, asset, estate, Family Trust, family trusts, probate, property, trust, trustee, trusts
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Getting to Know Family Trust

Friday, June 19th, 2009

A family trust is also known as a living trust or revocable living trust.  It’s a legal document holding ownership or title to your assets and real property.  When you create a family trust, it means that you will transfer the ownership of your assets to this trust.  This asset transfer is typically called “funding.”

You do not relinquish control when you transfer title.  Therefore, you can still borrow, buy, or sell.  Family trust may look similar to a will because it includes information and details of the instructions for your estate at your death.  Unlike wills, however, properly funded trusts:

• -Do not go through probate,
• -Give you control over assets you’re going to leave to your children or grandchildren, and
• -Prevent courts from controlling assets at incapacity.

In other words, you will not lose control of your assets when you write a family trust.  Also, it enables you to pass the property to your family or loved ones after your death.  In addition, it allows you to pick out a successor trustee (or any appointed person) to make sure that your property will go to the people you chose when you pass away.  As a result, you’ll have peace of mind.

Tags: assets, estate, Family Trust, funding, living trust, probate, property, revocable living trust, successor trustee, title
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You Need a Basic Will

Thursday, June 18th, 2009

It’s a pretty good advice to say that “if you are not doing anything to care for your legal affairs, then you should write a will.”  It’s a known fact that if you don’t create a will before you pass away, the state law will determine who will get your property.  Also, a judge may be the one to decide who will take care of your children.  It’s scary to think that their choice may not be whom you will choose.

You might think that it’s a daunting task to write such an important document.  However, you can confidently purchase software or use a self-help book to create a legal binding will that will:

• -Name a guardian to take care of your children (minors)
• -Name someone to manage the property that you will leave to your children
• -Leave your property to organizations or people you choose
• -Name your executor, or the person authorized to carry out the terms of your will

The safest way for you to make a will is to consult an attorney experienced in helping people create it.  The rule of thumb is that if you’re below 50 years old and don’t expect to pass on valuable assets subject to estate tax, then you can probably have a basic will.  However as you acquire more property in your old age, you’ll most likely engage in a more sophisticated planning.                                                                                                                                               

Tags: advice, attorney, basic will, estate tax, executor, property, state law, valuable assets, will
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