The value of trust(s)
This
week I am going to start my newsletter with the tip of the week because I want
to make sure you all are aware of this VERY IMPORTANT vehicle.
In
the past year, I have helped 4 families that would have greatly benefited if their
loved ones formed a living trust.
Why
form a living trust? From the California Bar Association: A living trust “is a
written legal document that partially substitutes for a will. With a living
trust, your assets (your home, bank accounts and stocks, for example) are put
into the trust, administered for your benefit during your lifetime, and then
transferred to your beneficiaries when you die.”
Living
Trusts may help you in 5 significant ways:
1.
Avoid long and costly probate.
2.
Provide clear directive should you become incapacitated physically
or mentally.
3.
Avoid, delay or reduce taxes
4.
Privacy
5.
Protection against creditors
If
you own a home you should have a Trust. Transference of real property probate
is required even if you have a last will and testament. Cost of probate can be
as little as $2,000 but can also be over $100,000 depending on the estate.
Probate also takes weeks if not months to resolve.
My
trust attorney is Jonathan Hollister. If you have any questions about your
estate plan or how a living trust might benefit you, please feel free to call him
at 225-2264 or email hollisterjon@aol.com
to arrange a free consultation.
Hot news of the week.
On
Wednesday, the Federal Reserve said that they did not see the need to raise
rate for the foreseeable future, which means June at the earliest. We oil
prices down and inflation in check, the growth of the economy can be supported
by lower interest rates.
This
will likely keep interest rates very low. In many cases we are seeing mortgage
rates below 3.75% again for 30 year FIXED mortgages and below 3% on most 15
year fixed or 7/1 ARMs.
The Fed’s
full press release is here.
-Kris
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