Released on = April 12, 2007, 8:17 pm

Press Release Author = Philfortune Media, Inc.

Industry = Law

Press Release Summary = Many assume that they only need a simple will to best take
care of their affairs when they pass away, and that only the wealthy need to have a
trust. While this may be true in some instances, it often also leads to unexpected
results.

Press Release Body = By Shawn Christopher

Estate Planning, put simply, is the process of arranging one's affairs for when they
pass away. This can usually be accomplished through the use of living trusts and
wills. To most, the concept of estate planning sounds relatively straightforward.
You probably feel that you should dictate how and to whom your assets are
distributed after you pass away, with little concern for any other issues that may
arise.

The reality of estate planning, however, is not always so simple. There are a number
of factors to consider when preparing an estate plan, including, but by no means
limited to, the following:

.The value and types of your assets

.Your current and future income

.Your distribution desires

.Your mental and physical condition

.Other objectives, such as leaving a legacy, providing for a charity, taking care of
your children or grand-children, or proving for someone with special needs

The most common estate planning instruments are wills and living trusts. There is a
common misconception about the need to have a living trust. Many assume that they
only need a simple will to best take care of their affairs when they pass away, and
that only the wealthy need to have a trust. While this may be true in some
instances, it often also leads to unexpected results.

Wills

A will is a document that lists how you would like your estate and affairs handled
upon your death. The process by which this is accomplished is called probate, which
is when a will is submitted to a court for administration after your death. The
executor of the will, usually a person named in the will, is responsible for
managing the affairs of the estate as it progresses through probate. The court will
oversee your estate, payment of your outstanding obligations, and distribution of
your assets according to the terms of your will. This process typically takes a
number of months at a minimum to complete, usually involves your executor having to
hire an attorney to handle the entire process, and is quite expensive for the
estate. Further, since your will is submitted to the court, it becomes a public
record for the entire world to see, which is problematic for those who desire a
sense of privacy over their financial affairs.

Living Trusts

A living trust is also a document that details how you would like your estate and
affairs handled after your death. However, unlike a will, a living trust does not
require your heirs to submit to the probate process. The trustee of the trust,
usually the person or company identified in the trust to handle the affairs of the
trust, is responsible for managing the trust estate until the trust terminates
pursuant to the terms of the trust. The terms of the living trust usually describe
how one\'s assets are to be distributed. Further, this distribution can occur over
many years if you so desire, thereby allowing you to retain a measure of control
over your assets even after your death. You may also be able to place other
restrictions over your assets, which can help to protect the assets from the
creditors of your heirs or to ensure that your goals and objectives are met.
Moreover, since your living trust is not submitted to a court, the terms of your
living trust are kept out of the public domain.

Which Do You Need?

The determination of whether to choose a living trust or a will depends on a number
of factors. In general, in Nevada, the main factor to consider is the value of an
estate. For persons who do not own any real property and have an estate worth less
than $20,000.00, the entanglement of the probate process is minimal. In such a
scenario, only an Affidavit of Entitlement is needed to transfer assets. For people
in this category, it is usually recommended to have a simple will. For those who own
real property or have an estate worth more than $20,000.00, probate can get more
complicated and costly. In these situations, it is usually advantageous to have a
living trust. While it is usually less expensive to prepare a will than it is to
create a living trust, this minimal savings is more than offset by the expense and
burden of probate. However, as with most things that deal with your legal rights,
your unique present and future state of affairs will dictate how you should best
plan your estate.

In general, the main advantages of having a living trust instead of just a simple
will are as follows:

1. Minimize Probate - If properly funded, probate can be minimized, if not entirely
avoided, by using a living trust.
2. Tax Planning - There are limits on the exemptions one can claim from your estate
having to pay Federal Estate Taxes.* For married couples, proper use of certain
clauses in your living trusts can maximize the benefits of these exemptions, thereby
saving more money for your heirs. *For 2007 & 2008, the annual Federal Estate Tax
Exemption is $2,000,000.00 per person. It is $3,500,000.00 per person for 2009. The
exemption is unlimited for 2010. However, unless Congress adopts new limits, the
Federal Estate Tax Exemption in 2011 will only be $1,000,000.00 per person.)
3. Protect Assets - While the creator(s) of a living trust generally will not be
able to protect their assets from their own creditors simply by placing their assets
into a living trust, with proper drafting, you can protect the assets included in
the living trust from the creditors of your heirs.
4. Special Circumstances - One of the better features of living trusts are their
flexibility. You can prepare a living trust to accommodate all types of unique
situations, such as the special needs of an heir, desire to regulate the manner in
which distributions are made to an heir, etc. . .

Lastly, in order to take full advantage of the benefits of a living trust, it is
vitally important to make sure that the trust is properly funded. This ensures that
all relevant assets are included in the trust. If not done properly, a situation can
arise where one\'s heirs may have to probate an estate even though there is a living
trust, which completely circumvents one of the main advantages of having a living
trust.

- - - - -

Shawn Christopher is an attorney licensed in Nevada and California. His office is
located in the Las Vegas area. For more information, please review his website,
http://www.shawnchristopherltd.com


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