Problems with Traditional Estate Planning
Traditional Estate Planning has typically taken one of four forms:
No planning at all
The problem with no planning at all should be self-evident – if you don’t plan, you don’t control, and your desires mean nothing. The government controls everything.
A simple Will
The problem with a simple Will is that you are forcing your loved ones to go through the agony of Probate. And, in most cases, you have made no provision for what is to happen should you be in a condition that you are still alive but not able to take care of your assets.
An unfunded Trust
Unfunded Revocable Living Trusts have always amazed and confused me. Why would any attorney set up a Living Trust for people and then have them put only $1.00 in that Trust? That is forcing everything to go through Probate before it ends up in the Trust. Perhaps the attorney is thinking they can “kill two birds with one stone” – they get to charge for the Trust and they still get to charge for the Probate case. Maybe, I don’t know.
Operation of law
Operation of law simply means titling assets as joint tenants with rights of survivorship or as POD and TOD accounts. This method works well at avoiding Probate on the death of the first person, but it actually increases the amount to go through Probate for the second to die.
What should I do?
At Cutchin Law Firm we do not believe that any one method is correct for everyone. That is why we take the time to get to know you and your situation. We are then in a position to best advise you on your unique case.