Will, living trust, inheritance, estate tax

dhindia · Post by **dhindia** » Fri Feb 23, 2007 10:01 pm

Guys.
This might have been discussed in the past. But i would like to know what is the easiest way to make sure that if i die (not that i am planning to), all my assets will go to my wife and daughter. Do i need to create a will ? OR can i just consolidate all my assets and keep their records and info in a safe place.

Mel · Post by **Mel** » Sat Feb 24, 2007 1:02 am

Okay one of the reasons I was busy and couldn't join the forum sooner was that we went through an estate planning ordeal after the birth of our second kid. I just happened to attend a talk by an estate lawyer and was scared to death after he said this "If both parents die, the kid does not go to grandma or grandpa. The state will take the kids unless and until there is a legal document stating guardianship for the kids." My wife and I didn't want our kids to be looked after by the state even for one day, so I got off my behind and met with this lawyer.

We ended up creating a living revocable trust, will, guardianship docs for the kids, living wills, living POA for each of us. Another dumb rule is that unless you have a living POA, even a spouse cannot ask for health records due to HIPPA regulations.

I would suggest talking to some friends or colleagues who know some good estate lawyers in your area and get a free consultation. Then choose some one you are comfortable with.

laks0 · Post by **laks0** » Sat Feb 24, 2007 2:06 am

Mel;8712Okay one of the reasons I was busy and couldn't join the forum sooner was that we went through an estate planning ordeal after the birth of our second kid. I just happened to attend a talk by an estate lawyer and was scared to death after he said this "If both parents die, the kid does not go to grandma or grandpa. The state will take the kids unless and until there is a legal document stating guardianship for the kids." My wife and I didn't want our kids to be looked after by the state even for one day, so I got off my behind and met with this lawyer.

We ended up creating a living revocable trust, will, guardianship docs for the kids, living wills, living POA for each of us. Another dumb rule is that unless you have a living POA, even a spouse cannot ask for health records due to HIPPA regulations.

I would suggest talking to some friends or colleagues who know some good estate lawyers in your area and get a free consultation. Then choose some one you are comfortable with.

Mel,

How much were the charges in setting up this trust?. Just want to get a feel of charges involved.

THanks,

Mel · Post by **Mel** » Sat Feb 24, 2007 2:35 am

laks0;8744Mel,

How much were the charges in setting up this trust?. Just want to get a feel of charges involved.

THanks,[/quote]

The guy originally charged $1400, then gave us a 10% off because we used a State Farm agent that he works with closely (I guess this SF agent sends him clients). When I looked at the amount of money that my state taxes in probate fees, this amount was not too bad and my net worth is not big at all.

laks0 · Post by **laks0** » Sat Feb 24, 2007 2:43 am

Thanks. Also how long does this process take to complete

kalpesh145 · Post by **kalpesh145** » Sat Feb 24, 2007 2:50 am

This was discussed in past in msn forum. Based on the responses, I bought Suze Orman will kit software and did it myself. Basically, I wanted to take care of two things.
1) If I die, kids and money stays with my wife.
2) If we both die, kids and money go to grand-parents.

You can do it yourself, S/W is pretty cheap and self-explanatory.
http://www.amazon.com/Suze-Orman-Will-Trust-Kit/dp/1401905676

Mel · Post by **Mel** » Sat Feb 24, 2007 2:52 am

About an hour or hour and half of consulting time. My wife and I ask too many questions :emsmile:. Then he called us a week later to sign up the papers and go through the docs. That was another hour at least (there were a few corrections made)

Some of the cool stuff (I don't know if it is standard) was that we can change anything on the document for free for one year, after that minimal "typing" charges will be assessed (he said $20 or so) However you have to do a lot of work, after you get this trust done. You have to go to every account you have and ask them to change your beneficiaries according to your trust name, etc. That is a huge pain and can take months if you are lazy like me :( Also it is important that you keep all documents in this "folder" with your estate papers. That way it is easy for your executors.

Jaggudada · Post by **Jaggudada** » Sat Feb 24, 2007 8:11 am

Ok you make a WILL and if no one knows it, it's of no use. If you provide a WILL to someone back home, first of all they may not be very familiar with the system out here and second of all, how comfortable you are in telling everything? Disclosing all your accounts etc.

IndianByDefault · Post by **IndianByDefault** » Sat Feb 24, 2007 8:34 am

Thanks to all for providing very useful information.

dhindia · Post by **dhindia** » Sat Feb 24, 2007 10:06 pm

guys
is it ok to use the suze orman kit as mentioned by one member.