For most people, the Living Trust has become the best method and least expensive way of avoiding probate and saving taxes.

A Living Trust is a written document which allows you to transfer your assets into your trust, for you and your heirs.

You are the trustee of your Living Trust, and you continue to manage and control your property as you do now.

You also choose your successor trustee, the person or persons you want to manage your property upon your incapacity, and to distribute your estate to your beneficiaries upon your death.

You may change or cancel your Living Trust at any time.

Whether you have a small estate or a large estate, a Living Trust offers you substantial savings and other benefits.

ADVANTAGES OF A LIVING TRUST

1. A Living Trust avoids complex probate proceedings.

Probate is the court process by which your assets are transferred to your heirs after your death. During probate your executor must get court approval before your executor can pay your bills, sell any property or distribute your property to your heirs. Many times your property must be sold to pay the costs of probate.

In most states Probate fees are based upon the gross value of your property. There is no allowance for your mortgages and other liabilities. There are other fees in addition; fees for court filing, publication to creditors and miscellaneous "costs of administration".

With a Living Trust, there is no necessity to go through probate. The high costs of probate can be avoided.

2. A Living Trust avoids out-of-state probate.

If you have property in another state, upon your death that property must go through probate in that state.

With a Living Trust, the out-of-state probate is eliminated and the property will pass directly to your heirs.

3. A Living Trust allows quick distribution to your heirs.

The normal probate usually takes between one to two years. Complex probate can take much longer. The estate does not have to be large in order for it to be a complex probate. During this period of time, assets are frozen and cannot be distributed to your heirs.

With a Living Trust, upon your death the person(s) you choose can take immediate action to distribute your assets to your heirs. On the other hand, if you do not wish your heirs to receive their inheritance until a certain age, that can also be controlled by the trust.

4. A Living Trust allows a single parent to pro-vide continuing care for minor children.

If a single persons has minor children to care for and dies with or without a Will, their assets will be tied up in probate and there will be no funds available for the care of their children without special application to the court.

With a Living Trust, you can select the person you wish to have physical control over your children as well as the guardian of your child's estate. Your assets will be immediately available for this purpose.

5. A Living Trust can protect "second marriage" families.

Many times second marriages have the problem of husband's heirs, wife's heirs and possibly new heirs. In many cases, there is no protection for the heirs of the first spouse to die.

With a Living Trust you can protect all heirs, as well as the surviving spouse.

6. A Living Trust is completely confidential.

If your estate must be probated, your file is open to the public. Anyone interested can simply go to the courthouse and obtain all the information in your file.

A Living Trust is a private document. It does not have to be filed with any governmental agency. The size and distribution of your estate will remain confidential.

7. A Living Trust is more difficult to attack than a Will.

In probate court, anyone can easily attack a Will, even without using a lawyer. Your Potential heirs are notified when probate is commenced and they can contest a Will simply by notifying the court.

With a Living Trust, it is difficult for anyone to attack the distribution of your estate since this is a private document and not the subject of court proceedings such as probate. It would be very costly for anyone who wished to do so.

8. A Living Trust eliminates joint tenancy problems.

Holding your property in joint tenancy can eliminate probate upon the death of the first joint tenant, but probate is required upon the death of the surviving joint tenant. In addition, the surviving joint tenant incurs capital gains tax upon the sale of the asset.

With a Living Trust, probate is eliminated and capital gains taxes are minimized or eliminated entirely.

Adding your children as joint tenants creates substantial risks to you:

• Your child's creditors can attach your property
• In case of divorce, your child's spouse could claim an interest in your property
• Your child can interfere with your decision to sell or refinance the property

With a Living Trust, your property is safe.

If the person with whom you hold title jointly becomes incapacitated and can no longer handle his or her affairs, you must go to court for permission and approval to sell the asset. With a Living Trust, this can be avoided.

9. A Living Trust preserves governmental benefits for disabled heirs.

A disabled heir generally loses governmental assistance payments upon receiving an inheritance.

A Living Trust can authorize your successor trustee to make special distributions for a disabled heir while still preserving governmental benefits.

10. A Living Trust avoids conservatorship upon incapacity.

If you become incapacitated during your life, your family will have to apply to the probate court to appoint a conservator to manage your property. This will entail yearly court fees and costs.

In a Living Trust, the successor trustee you have selected can manage your property, upon certification by a physician that you are unable to handle your affairs.

11. A Living Trust can help protect your estate against catastrophic medical expense.

If you should require care in a convalescent home, the extreme expenses could wipe out your estate.

With a Living Trust, the person you have chosen can make gifts of your property to your heirs; and/or take other actions necessary to qualify for governmental benefits.

12. Durable powers of attorney supplementing your Living Trust.

If you become incapacitated during your lifetime, court proceedings would be necessary to appoint a conservator to manage your property.

As part of your Living Trust estate plan a durable power of attorney is drawn up for management of the assets you have not transferred to your trust (which could include your retirement accounts and life insurance).

13. Living Will and durable power of attorney for health care.

At Springer & Pollock, we also provide a durable power of attorney for health care decisions on your behalf if you are incapacitated. Your "Living Will" gives your agent the power to decide whether or not life should be prolonged indefinitely by expensive life support systems when there is no hope of your recovery or whether you should be allowed to die a natural death.

These durable powers of attorney and Living Will, in conjunction with a Living Trust, allow for continuing management of your estate in spite of your incapacitation during your lifetime. They also protect your estate from being dissipated to pay for life support systems when there is no hope of recovery.

14. A Living Trust can save you substantial death taxes.

Federal estate taxes are imposed upon the net value of your estate. Under current tax laws the first $700,000 of your estate is exempt from taxation. After this exemption, your estate is taxed at the rate of 37% - 55%.

With an A-B or Disclaimer Trust, married couples can double their federal estate tax exemption. With an A-B Trust or Disclaimer Trust, both spouses serve as trustees. Upon the death of a spouse, the survivor serves as sole trustee and divides the estate into "deceased spouse's trust" and the "surviving spouse's trust".

The surviving spouse has the benefit of the income from the deceased spouse's trust, as well as the assets, if necessary, for support. The surviving spouse cannot change or cancel the deceased spouse's trust.

Planning your estate with a revocable Living Trust is an inexpensive and relatively easy method of ensuring that your loved ones are protected. Unfortunately, in many cases even responsible people tend to procrastinate and put off their estate planning until it is too late.

Whether you choose to allow Springer & Pollock to assist you in formulating your living trust estate plan or prefer to seek assistance elsewhere, we urge you not to delay your estate planning.