Posts Tagged ‘Probate Court’
The treatment by the courts and some legal professionals of some now deceased Celebrities Estates, is causing many of today’s Celebrities to re-focus their attention back to re-examine how their own status is with their legal advisors.
No longer, is it just good enough to work with only a lawyer, or notary, insurance advisor or financial planner, it is being discovered by some that one is far better off to work and plan with several of these legal professionals.
Take a look at the estate picture of the late Mr. JOHN D. ROCKEFELLER, SR. ?
HIS GROSS ESTATE SIZE WAS: $26,771,834.00. SETTLEMENT COSTS WERE: $16,991,640.00 LEAVING ONLY $9,780,194.00 ! FOR A 63% percent reduction !
AND ANOTHER WEALTHY INDIVIDUAL, MR. FREDERICK VANDERBILT: HIS GROSS ESTATE WAS $76,838,530.00. SETTLEMENT COSTS WERE $42,846,112.00 LEAVING ONLY $33,992,418.00 ! ( More than half eaten up by settlement costs ) !
A frequent question asked is “ DOES A WILL AVOID A DEATH PROBATE?
The answer, NO. The fact is if assets pass through a Will, probate is needed.! The word Probate comes from the Latin, and it means “ to prove the Will. ”
All property that is controlled by your Will must go through the probate court, and once your estate enters the probate process, it is trapped in the system until the judge releases it .!
Another question then is asked : “ Rather than a WILL, does a LIVING TRUST AVOID A DEATH PROBATE ?
The answer is YES!……. ALL ASSETS TRANSFERRED TO A LIVING TRUST COMPLETELY AVOID THE PROBATE PROCESS BOTH DURING YOUR LIFE AND AT YOUR DEATH ! Though this will cost more to set up, the savings can still be enormous.
That is why the position of this blog material suggests to involve as many of one’s family members in their Estate Planning process as possible for their protection.
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The oh so slow progress of one’s estate through probate often becomes very frustrating for the family sometimes causing arguements among members who would normally seek support from one another following a death.
That is because this complex process usually takes between one and two years to complete.! While that may seem like a long time, there are some that take years to settle.!
Though many families believe their estates are simple, it would still be impossible to close a full probate in less than a year, due to all the legal steps that must be completed to satisfy the Court.
Because the family loses control of the estate during probate, they can pay an emotional price as well and should use caution to avoid infighting within the family due to the slowness of the probate system.
To be certain that you are as knowledgable as possible , one can see why it is so vitally important to use the most informed legal professionals for guidance in planning your estate. There are no short-cuts to completing these valueable documents!
Estate Details Are Not Private In Probate Court?
posted by bruceE @ 12:16 PM
Friday, February 12, 2010
There is an oft asked question. “ Are the details of an Estate kept private in Probate Court ?
The answer is NO ! All probate proceedings are open to the public !
Anyone, who may be interested in your affairs, can pull up your probate file and examine every detail of your financial life !
The file will disclose an inventory and appraisal of every asset you owned at death. !
It reveals the name of all your creditors and amount owed to each.! It lays out the names of all your beneficiaries and the amount and conditions of their inheritances. ! This information is often compiled and SOLD to those who use the information to sell products and services to vulnerable surviving family members !
If you owned a business, it can be extremely damaging, because your competitors will have an abundance of your confidential business information readily available in your probate file.
This blog continuously urges individuals to take the time to investigate with their financial advisor, lawyer, notary or whomever they choose, and to discuss all the ramifications of the decisions they want to make in their final estate plan.
Remember………the ball is in your court ! How you handle it , is SOLELY UP TO YOU !
These Celebrities did not pay enough attention to their estate planning and Wills preparations and it cost them heavily !
W.C. FIELD’s estate was $884,680.00, settlement costs were $329,793.00 leaving $554,877.00 !
HUMPHREY BOGART’s estate was $808,378.00, settlement costs were $172,466.00 leaving $635,912.oo !
GARY COOPER’s estate was $4,339,968.00, settlement costs were $885,437.00 leaving $3,454,531.00 !
CECIL B. DeMILLE’s estate was $4,043,607.00, settlement costs were $1,396,064.00 leaving $2,647,543.00 !
WALT DISNEY’s estate was $20,982,796.00, settlement costs were $4,789,888.00 leaving $16,192,908.00 !
ELVIS PRESLEY’s estate was $6,332,882.00, settlement costs were $3,542,083.00 leaving $2,790,799.00 !
Probate fees can be very expensive ! At the moment, it is known that the average cost is between 2% and 4% of the gross value of the estate!
60% goes to lawyers, and 40% goes to personal representatives and others.
Remember, every dollar that goes to pay probate costs is a dollar that could benefit your family, and opportunities can be lost because the cumbersome probate system moves so slowly.
With ever-changing legal and taxation laws, planning your estate, with the best legal professionals guarantee’s the proper advice to suit each individuals personal situation. There are no short-cuts !
With the estate planning accomplished, take the next step to REGISTER THE LOCATION OF WHERE YOUR VALUEABLE DOCUMENTS ARE GOING TO BE STORED WITH A WORLDS WILLS LOCATION REGISTRY for easy retrieval when needed without costly legal searches.
REMEMBER, IT IS THE SOLE RESPONSIBILITY OF THE TESTATOR TO INSURE THEIR MOST RECENT WILL CAN BE FOUND !
Can you be accused of poor estate planning and leaving messy details and anguish for your family because you did not leave a WILL ?
Can you be accused as well, that if you did leave a Will, did you register its location with a worlds wills location registry so it can be easily found when needed by the family and executor?
If you said YES to both accusations, you are joining some famous people like the following who died without a Will , and through poor estate planning lost a significant amount of their money in heavy settlement costs !
Clark Gable’s estate was $2,478,299.00. The settlement costs were $772,811.00, leaving a net estate of $1,705,488.00 ?
Al Jolson’s estate was $4,385,143.00, The settlement cost was $1,349,066.00, leaving a net estate of $3,036,077.00 ?
Marilyn Munroe’s estate was $544,810.oo. The settlement costs were $174,384.00, leaving a net estate of $370,426.00 ?
Franklin D Roosevelt’s estate was $1,940,999.00. The settlement costs were $574,867.00 leaving an estate of $1,366,132’00
( Once Wills go through the Probate Court, the Will information then becomes a public record in the courts,)
Do you want to lose an unnecessary amount of your money from your estate, and incurr additional legal costs through bad planning on your part ?
Isn’t the above history of these famous people enough motivation for you to investigate how YOUR estate planning can be handled to minimize your possible losses ?
THE GOOD_ _ THE BAD _ _ AND THE UGLY _ _ _OF SOME PROBATE FEES !
Some families may consider the way probate fees are calculated as being unfair to the family.?
Some states/prov. laws, sets the fees that probate representatives may charge. Many allow representatives to charge any fee that the court would consider reasonable, without limitations. Others, limit the fees to a fixed percentage of the value of the estate. These fees can be expensive under either method.
Cosider the late William E. Boeing estate results showing a 47% reduction in the estate value ? The estate was valued at $22,386,158.00. total settlement costs were $10,589,748.00 , leaving a net estate value of only $11,796,410.00 ? By any standard, that is extremely expensive as most would agree.
Depending on how title was held on the date of death, a married couple could pay some form of probate fees on the death of each spouse. Again a firm reminder for individuals to use the services of a qualified legal professional when they start their estate planning to minimize these sometime costly fees.
Because a WILL only takes effect at the time of your death, the answer is NO. A Will has no control over events during your life.
When the word Probate is mentioned, many people think it is only something that happens when you die!
Most people unaware of these processes, do not realize that probate can also happen while you are alive. It might be referred to as a living probate, but in legal language it is called a “conservatorship “ or “guardianship proceeding ”
If you become mentally disabled before you die, the probate court will appoint someone to take control of all your assets and personal affairs.
These court appointed agents must file very strict annual accountings with the court, causing the entitre process to be very expensive, time-consuming and most of all, humiliating!
Living Wills
How to cope with aging parents who you watch getting older each day.
Facing the death of a parent can be a traumatic experience for the family and children of any age.
Having to cope with with the loss of a parent is an issue no one wants to experience, yet it is a factual part of living.
It should be remembered that coming to terms with the death of a parent happens in a process of stages and is usually not something that happens overnight. That is why it is important to try to determine their wishes about what they want family to do about a family Will, ( if there is one)
Since there is no right way to grieve, each should grieve in their own way. Some grieve outwardly through tears and expressed emotions, others, inwardly and keep the hurt they feel to themselves.
If talking about the situation makes one feel better, then they should express themselves. No one however, is obligated to anyone to tell them how they feel.
Learn to cope by remembering that even though your parents physical presence is gone, the relationship you had with them still exists. It will live on forever through you. Hold tight to your memories and keep the relationship alive despite their death and physical absence.
No matter what you do, your parents are going to age right before your eyes. Before you were even born, your parents knew aging at some point would be a factor. Everyone is in the same boat and will be aging soon., hopefully minus any serious illness or handicap, and some, sooner than others.
Help them in their declininng years to be sure that the family planning, and what is to happen to their estate after they pass, is properly addressed. It is to be expected that they above all, would not want to leave a mess after they are gone.
Will planning
A NEW MOON is an ideal time for new beginings and putting resolutions in gear that are meaningful !
Often, it allows sharper focus on family matters, what one can do to improve family relationships, and make all family members more comfortable in their surroundings knowing that the future of all members is being properly laid out.
You can start the dialogue with family members by introducing some of the language that they all should become familiar with. Your plans for their future, the Testamentary Letter, ( the letter first putting together all the information you will need to give to your legal professional), your Estate Plan ( and what that is ), explain what a Testator and a Testatrix is, what a Codicil and Probate means, what assets, beneficiaries and child guardianship mean, what a Family Will is, a Living Will, a power of attorney, a Health Care Directive is, Living Trust.
Impress upon them the importance of their input and the part they should play in helping put together this information together for presentation to their legal advisor.
And finally, with the legal advisor, be sure to explain the parts the family will have to play when that eventful time is at hand. The more members of the team that are involved makes for a more favorable accomplishment.
Family members with aging parents should not be bashful about asking of their parents, what they want the family to do in the event of. Some parents may not be so open to discuss these events, but family should press for definet instructions of what they want their parents to do. This is not being offensive. IT IS BEING PRATICAL !
Another estate planning option called a Revocable Living Trust is becoming popular with estate planners as a complete WILL substitute.
The reason, IT CAN CONTROL ALL OF YOUR ASSETS BOTH DURING YOUR LIFE AND AFTER YOUR DEATH !
Financial planners tell us that when you set up a Living Trust,, you transfer the title of all your major assets (stocks, bonds, real estate etc. ) from your name to the name of the Trust.
You then name yourself as the trustee and beneficiary. _ _ _ That gives you, and you alone, total and complete control of all your assets. _ _ _ You can buy, sell, trade, do whatever you want_ _ _just like you do now.!
These financial planners say the real benefit of it, is the difference between a Will, because when you die, there will be no assets left in your name, and therefore, no probate for your family to endure. Whomever you name as your successor trustee will immediately gain control of your assets to distribute them according to your exact instructions.
This blog consistently recommends that individuals enter this arena of Estate planning with as many professional helpers as possible. Your insurance broker, lawyer or notary, or financial planner or Trust officer to gain as much knowledge about what is best for their personal situations. Sure, getting married is a lot simpler, but in doing so, one automatically assumes a whole new world of responsibilities. How one handles and organizes these responsibilities determines how successful they will be in planning their estate.