The Disadvantages of a Living Trust - A Lawyer's Confession

At the many trust seminars I have held over the years, I have often heard the question, "What are the disadvantages of a Living Trust?" My answer has always been "They are so few and so minor that they should not be considerations in your decision regarding establishing a trust." That statement is true to the extent that the disadvantages are minor, but I don't want to mislead you. There are a few distinct disadvantages that you may want to consider.

1. Initial funding of your trust can be a real pain. The larger and more complex your Living Trust estate is, the more of a pain it will be. In order for your Living Trust to be effective, all assets must be transferred to the trust. This can be time consuming drudgery. All real property must be transferred. This means a separate deed for each property must be prepared. Many counties/states have recording forms that must be prepared and then the deed and forms must be recorded at your county recorder's office. You must prepare the deeds and forms yourself or pay somebody to do them for you. This also means trips to the recorder and waiting in lines.

Living Will

All bank accounts, stocks, bonds, mutual funds, and other investments with documents of title must be transferred. This means visiting each bank, broker or other financial professional. Valuable items of property such as boats, autos, motor homes and maybe firearms must have title changed. This means more documents of title must be filed or recorded and more standing in line will occur. You will also want to make your Living Trust your secondary IRA, annuity, 401K, and insurance beneficiary. This means more work.

The Disadvantages of a Living Trust - A Lawyer's Confession

Of course, this does not all have to be done immediately, but if something happens to you before it is complete, you risk probate. Once you have finished, this task becomes much easier as you will thereafter acquire all new assets in the name of your Trust making changes unnecessary. Still, this initial process can be frustrating.

2. Writing a check can be difficult. Every time you write a check at the grocery store, department store, or other venue, you may find yourself trying to explain to the clerk that you are the trustee of your Living Trust and that your ID is sufficient to verify the check. Trusts have become more common and more clerks are aware of them, but there is still a large part of society that is clueless about Living Trusts and these folks can make life difficult.

For that reason, I usually recommend that you do not keep large sums in your personal checking account, so that it remains in your name or names, thus avoiding the awkward explaining in the checkout line, while not risking probate.

3. Refinancing real estate can be difficult. Most banks or mortgage companies will require that your real estate is not in a Living Trust while they are financing and then recording their financial interest in the property. This means taking the property out of your Trust during the financing and then returning it to your Trust when the transaction is complete and recorded. This can be very time consuming.

4. You must always remember that you have a trust when purchasing anything new and the people you deal with may be ignorant about trusts. When you buy that new car, you want to take title in your name(s) as trustee of your trust. It is easy to forget to do that, especially when your trust is new and you aren't used to it. You can run into a car salesperson that does not understand trusts. You may run into bankers who don't know the difference between revocable and irrevocable trusts and they may insist that you need a separate Federal tax ID for your trust.

Is this a major drawback? No, it's not, but it can be awkward, time consuming and a little frustrating. (In case you are wondering, an irrevocable trust is used for other purposes such as asset protection, charitable gifts or tax avoidance purposes. They are separate entities and need tax ID numbers. Once property is in them, it cannot be removed. Your Living Trust will be a joint revocable living trust and is an extension of both of you (if a couple), not requiring a separate tax ID.)

5. Perhaps the biggest drawback to a Living Trust is also one of its greatest benefits. After your death, there will be no probate. Everything is done quickly and quietly without lawyers or courts. The benefits of this are obvious, but what is the drawback?

The drawback is that there is no one to supervise this distribution. There is no one looking over the shoulder of your successor trustee to be sure they act properly. In other words, you must trust your trustee. This is why it is called a trust. It is not difficult for a successor trustee to deceive other beneficiaries or mishandle assets. There is no judge to review the records and accounting.

There is a solution if you have any reservations or doubts about your successor trustee. You can name co-trustees to watch each other, if you can trust them not to co-conspire. However, you then run the risk that they may not agree on issue about distribution and that can lead to the courts to resolve disputes, just what you are trying to avoid. You can name 3 trustees so that you always have a majority, but 3 or more can become cumbersome. You can name professional trustees or banks to act as your successor trustee, and they are typically licensed and bonded and will do as directed, but they will be expensive.

In conclusion, despite all these drawbacks, for nearly everyone, a Living Trust is still the best available estate plan. In virtually every case, the benefits of a Living Trust far outweigh the disadvantages. For example, there are no disadvantages to a Living trust regarding income taxes or estate taxes. A Living Trust is still the best way to avoid probate which is enough reason to tolerate the difficulties. I have written extensively on the benefits elsewhere, and they are many and they are valuable. I just do not want to be accused of sugar coating the few disadvantages. I want my clients to set up their trust with their eyes wide open.

The information in this article is provided for educational purposes only. It is not and should not be considered legal advice. For your personal applications of this data, you should consult a local attorney familiar with your local requirements.

The Disadvantages of a Living Trust - A Lawyer's Confession

To avoid the ravages of probate, outrageous attorney fees, and astronomical death taxes visit my website by clicking the link below.

http://www.internet-living-trust.com

cell phone watches Cheap Deals Mason 5C025 Pad Anti Vibration

Does Your State Accept Medicaid For Assisted Living Facilities?

Before individual state governments passed much-needed legislation, many assisted living facilities were only private pay situations. Fortunately, for many older Americans facing housing dilemmas, Medicaid waiver programs have taken up much of the slack that Medicare did not. Providing funds for placement in assisted living facilities as well as a number of other helpful services, Medicaid helps lower-income, elderly individuals receive the care they need.

All states accept funds from Medicaid waiver programs for placement within a nursing home, which are normally more expensive than assisted living facilities. While many states do not recognize funds from Medicaid waiver programs for assisted living, those that do are located throughout the country and offer many options to aging Americans needing assistance with daily living activities. After searching high and low, finding a general overview of states that offer the Medicaid waiver program for assisted living was rather nonexistent, but my research is your gain.

Living Will

Medicaid Waiver Programs State Line-Up

Does Your State Accept Medicaid For Assisted Living Facilities?

As of publication, there are no definitive lists that outline states with Medicaid waiver programs for assisted living facilities. At best, the government (via the Centers of Medicare and Medicaid Services) has created an online list of all Medicaid waiver programs (1), meaning visitors have to spend time finding the desired information. Although I've outlined the states that do accept Medicaid waiver programs, certain impediments may be in place to securing a Medicaid-covered bed in an assisted living facility. Be aware that some states may offer the program on a trial basis, follow limited participation quotas, or are just introducing the program to state residents. As always, verify eligibility requirements with the Centers for Medicare and Medicaid Services.

i. Arkansas - Aged and disabled program participants are provided with adult residential care, assisted living, and medication assistance and consulting till death.

ii. California - Beginning in 2003, California began offering Medicaid waiver programs to aged individuals.

iii. Delaware - Program participants with Alzheimer's, dementia, physical disabilities, or needing assistance with activities of daily living (ADLs) are provided with funds for assisted living facilities.

iv. Florida - There are quite a few Medicaid waiver programs for the state of Florida, including a broad waiver for all individuals aged 65 or older; individuals with Alzheimer's disease and dementia; case management services; assisted living; incontinence supplies to frail, elderly, and disabled individuals aged 60 or older; and a home and community based waiver that offers mental health services to seniors in specific areas of the state.

v. Iowa - Many assisted living facilities across the state accept money from Medicaid waiver programs; however, the number of residents in a facility using these funds is limited.

vi. Indiana - Aged and disabled individuals are provided with case management, transportation, assisted living, medical equipment, congregate care, home delivered meals, nutritional supplements, and much more. The state also offers a targeted assisted living waiver program that focuses on therapeutic social and recreational programming.

vii. Maryland - Program participants are assessed and, if deemed eligible, are offered either services in the home or placement in an assisted living facility.

viii. Mississippi - Medicaid waiver programs for this state cover individuals requiring assisted living services due to disabilities, Alzheimer's disease, and dementia as well as individuals aged 65 and older needing adult residential care.

ix. Missouri - Program participants aged 65 and older needing assisted living services are eligible.

x. Nebraska - Individuals aged 65 or older who agree to participate in medical and health care evaluations are eligible for home services or can be placed in an assisted living facility (2).

xi. New Jersey - Under the Enhanced Community Options waiver (3), individuals can either remain at home to receive assistive services or be placed in an assisted living facility.

xii. Ohio - The Ohio Department of Aging is responsible for determining applicants' waiver eligibility, evaluation of disabilities, prognoses, and financial assets for proper placement within assisted living facilities.

xiii. Rhode Island - Aged and disabled individuals are provided with assisted living services, case management, and specialized medical equipment.

xiv. Vermont - Eligible Medicaid recipients are provided with assisted living services under Choices for Care, 1115 Long-Term Care Medicaid Waiver, as well as a number of other care options.

xv. Virginia - This state's Medicaid waiver programs apply only to individuals with Alzheimer's disease or dementia who require the services of assisted living facilities. Depending upon the medical circumstances, age limits may be in effect.

xvi. Washington - The waiver program provides for aged and disabled residents at assisted living facilities.

xvii. West Virginia - Aged and disabled program participants are provided with adult residential care and assisted living services.

Additionally, some states offer details on restrictions and eligibility that can be downloaded by navigating to each respective state's Medicaid waiver informational link: www.cms.hhs.gov/MedicaidStWaivProgDemoPGI/MWDL/list.asp?intNumPerPage=all&submit=Go

What to Look for in the Future

State governments determine eligibility based on income, giving lower-income seniors an opportunity to be placed in a facility that will look after their needs and supervise daily activities. With the baby boomers retiring as we speak and well into the coming years, will we see growth in the number of Medicaid-eligible assisted living facilities in other states? Perhaps the thirty-three or so other states will realize the incredible benefits to both seniors and society in general.

Sources
1. cms.hhs.gov/MedicaidStWaivProgDemoPGI/MWDL/list.asp?intNumPerPage=all&submit=Go
2. nenaaa.com/finding-care/aged-medicaid/
3. state.nj.us/health/senior/go.shtml

Does Your State Accept Medicaid For Assisted Living Facilities?

Jill Gilbert is the President and CEO of Gilbert Guide, a comprehensive website helping seniors and their loved ones find a senior care provider along with extensive tools and resources to solve the challenges of aging. She is the author of "Leading by Example," a monthly column in McKnight's Long-Term Care News, the chief industry publication for long-term care providers. Jill has been interviewed for a CBS News special, was a key presenter at the Pennsylvania Assisted Living Association's annual conference, and was recently interviewed on San Francisco TalkBack. Gilbert Guide was founded on the concept that quality matters, and its primary goal is to educate consumers on a breadth of senior care issues. Visit http://www.GilbertGuide.com for a comprehensive provider database, expert advice, and quality assessment tools that help consumers conduct their own "expert" evaluations of providers.

watches cell phone Buy Bern Berkeley Winter Snowboarding Helmet Buy 7 8 X 10 4 Rectangular Home Buy Acdelco D1483D Ignition Lock Cylinder For 118

6 Ideas For Painting Your Living Room

The different rooms of your house require great attention as to the paint's color. One color might suit a particular room in the house but will not be a very good sight in another room. That is why people who want to paint their house should have proper knowledge and experience in painting.

If you want a living room makeover, then you will need good painting ideas. Check out these living room painting ideas:

Living Will

1. First and foremost, you need to choose the color scheme to be used in your living room. This means that you have to choose the paint colors for your doors, walls, accessories, trims, and other accents.

6 Ideas For Painting Your Living Room

2. Base your color scheme on the living room's largest furniture, the room's focal point, height of your ceiling, the lighting, how the room is to be used, the room's size, and the feeling that you want to create whenever you're inside the living room.

3. After that, it's now time to focus in choosing the paint finish because this can alter the feeling that you want to create. If your walls have minor imperfections, choose a paint finish that's matte or flat because it doesn't shine. This kind of finish also offers effective stain resistance.

4. For your doors, trims, and other architectural details, highlight them with a gloss finish by using semi-gloss or satin finish. It would be easier to clean these areas because of the texture's smoothness and the wall's sheen.

5. For the walls of your living room, you can use paints which are water-based or latex, but for your windows and doors, use acrylic paint.

6. Some color and types of paint require more that one coat application, so you should take that into account. One gallon of paint usually covers about 400 sq feet.

With a little creativity and hard work, you can turn your living room in to a masterpiece of your own creation. Your guests will be awed once they visit your house and see your living room.

6 Ideas For Painting Your Living Room

To learn more interior painting ideas, visit my house painting tips site.

watch mobile phone Buy Bern Berkeley Winter Snowboarding Helmet Buy 2008 2010 Mitsubishi Lancer Without Turbo Radiator

How To Make Him Want You - The Right And (Terribly) Wrong Ways To Earn A Man's Love

Ever wondered how to make him want you? You spend a lot of time with each other, talking, laughing, and having a good time -- but he simply doesn't see you as a girlfriend. He loves you, but only as a friend. Why? It could be because you're trying to earn his love in the terribly wrong way!

The Terribly Wrong Way Of Earning His Love

I had a friend named "Joy" who once had a bad relationship with an abusive boyfriend. He was immature, unfaithful, and irresponsible. And even when Joy was doing everything she could to hold the relationship together, the guy was still abusing her, dating other women, and simply being a jerk.

But to my shock and disappointment, Joy still put in her hours to make him stay in the relationship. Even if it was the guy who was being a jerk, it was Joy who was doing all the sacrificing, pleading, and anguishing.

Needless to say, the relationship didn't work out -- but not before Joy spent an incredible 4 years trying to hold the relationship together.

What Was Joy's Problem?

Loves, it's wrong to go thinking you can change a bad boyfriend to make him love you.

I've learned that most -- if not ALL -- bad boyfriends are actually emotionally-unavailable little boys. If he doesn't care enough to help make the relationship work, then he's very likely not in it for the long haul.

And trying to change him will only make the situation worse.

Read my lips -- you CAN'T change a bad boyfriend by trying to fix his problems.

A man doesn't need a "mother," a "teacher," or a "shrink" figure to be happy.

He needs a LOVER.

Do you really want to be a mother, teacher, or shrink to him for the rest of the relationship? I sure hope not!

The Right Way Of Earning His Love

Ah, but there's some GOOD NEWS in all of this! Like I said, it's IMPOSSIBLE to change a man by trying to fix his problems. But no one said you couldn't INSPIRE him to fix his problems!

Men are like puppies. If you chase after them, they'll run away. But if you handle the treats, you don't need to chase them -- they'll come to you and beg to have their tummy rubbed.

What's your "treats?"

It's your love. Your charm. Your irresistible attractiveness.

Here's the lesson, loves: It's not because about "what you should do" to earn a man's love...

It's about HOW TO ACT, THINK, and FEEL in such a way that it makes men FALL IN LOVE with you -- to the point of manning up and actually taking responsibility of the relationship.

Doesn't that sound great? So remember, loves: Don't be a teacher, mother, or "shrink" to him. Be a lover, and he'll start treating you like one!

My name is Samantha S. James, and I'm a dating-and-relationships coach. Feel free to join my community of strong, attractive, intelligent women. Learn with us how to act, think, and feel in such a way that it makes men fall in love with you!

Article Source: http://EzineArticles.com/7022314