 |
|
|
"Ask
the CPA" Other Links Map
to our Firm Consulting
Tax Our Background |
To use many different
financial calculators, to look at Additional Accounting News,
IPO News, Financial News, General News, and Technology News,
or to get links to a lot of helpful business sites on the web and much more just click on
the following at : Click here for an additional site for financial calculators on the web Living Trusts As we grow older we worry about what will happen to our property after we die. This is a very important decision and unfortunately it can also be confusing. Today we are going to look at Living Trusts. Many times we see that people who are selling Living Trust packages are making false or incomplete statements about the probate process in Texas, guardianship and the taxation of estates. Some of these statements are as follows:1. Living trusts save taxes: Misleading, most Texas estates will face no death taxation at all. 2. Living trusts help you avoid contested wills: Misleading, trusts jut like wills are subject to attack on the basis of lack of capacity, undue influence and fraud. 3. Living trusts help you avoid your creditors: False, during your lifetime and after death assets in a living trust are subject to claims of creditors. 4. Attorney charges are much higher to probate a will then the cost of process a Living Trust. Wrong, we have seen cases where the process of both establishing and administrating a living trust has far exceeded the cost which would have been incurred with a proper will and probate. 5. Living trusts avoid the expense of a guardianship: Misleading, In some circumstances, a Durable Power of Attorney is a simpler and less costly way to achieve the same goal. 6. Probate takes years to complete: Wrong, it has been our experience probate can normally be completed in two to three months. 7. Probate requires excessive time and money: False, the administrative requirements for probate can in many cases be much less then that of the living trust. In conclusion while a living trust may be appropriate for some people, the cost of creating, funding, and administering a living trust may outweigh any benefits. Many of the issues discussed above need to be discussed with your attorney or our attorney. In addition there are tax implications which we would be glad to help you with. In future articles we will look at living trust and wills in more detail giving some of the estimated cost and tax implications. Always remember tax matters can get very complicated. If at anytime we can be of service in your tax planning or the completion of your tax return please let us know. Best Regards Joe H. Hicks Jr. CPA We now offer payment for Tax, Accounting, Consulting and other services and products by credit card on our Secure Payment Form. Just click on the Credit Card Symbols below.
|
|
