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Estate Planning attorneys help people deal with the complexities of their estates. They also counsel people on how to avoid probate and inheritance taxes. Estate planning is a complex process that often requires the assistance of an estate planning attorney. Many people are unaware of the intricacies of estate planning because they don't understand the asset structures involved. Legal papers dealing with property distribution, for example, can be quite confusing.Because of the complicated nature of estate planning, many people opt for the easy way out. In recent years, people have turned to trust planning, making use of retirement plans and other financial vehicles to divide up and divide their assets.
In addition to saving money through estate planning, the division and allocation of assets through trusts can help avoid the high cost of probate and inheritance taxes. In fact, some people believe that using trusts to divide up the assets and spread them among several generations can actually reduce the tax rate to a great degree.There are two types of estate planning: irrevocable and grantor trust. Irrevocable trusts are created when the person who establishes the trust dies. Grantor trusts are set up when someone gives the attorney permission to use his property in the event of his disability or incapacity. Both types of trusts must pass legal tests before being established, but in some states, taxes on both types of trusts are levied at the same time. This means that while grants and irrevocable trusts will cost less overall, the former may be less favorable to the beneficiary.
Real estate transactions often include Trusts between an experienced professional who knows how to manage Living Trusts, and an inexperienced investor who do not. The inexperienced investor may think he/she can handle a Trust, but without the experience or understanding to navigate the various nuances of a Trust, and without having any real estate experience, it's easy to get off track and lose money. You cannot invest in real estate without learning how to manage it, one way or another. One way is with an experienced attorney. Trusts between experienced professionals will go much smoother and be less likely to "go south" as quickly as Trusts involving inexperienced people.The best way to avoid losing assets through Trusts and other types of transactions, especially if you do not have attorney representation, is to have an attorney do your paperwork and asset protection for you. In today's day and age, having an experienced attorney on your side is absolutely critical to protecting your assets. Even when dealing with your own finances, incorporating your own Living Trusts with an experienced professional will help keep you in control, while also giving your attorney the ability to move assets around, take control of them, and liquidate them without you, your spouse, or your children ever having to know about it. An attorney will keep things confidential, and make sure that any contracts are properly executed, debts are properly discharged, and that any asset protection transactions, such as a Trust, are legally binding.Having an experienced attorney on your team will make sure that everything runs smoothly, and leaves you with peace of mind that your assets will be well taken care of, should something happen to you.
A Power of Attorney is basically a written authorization to act for or represent another in private legal matters, business, or any other legal issue. The principal authorizes the agent or attorney to act on his behalf. In some cases, the agent or attorney may act on the principal's behalf without the principal's knowledge or consent. This can be done when a Power of Attorney is used to sign checks or make payments. If a Power of Attorney must be used for real estate transactions or to transfer ownership of a property, the principal must specifically authorize the agent before the transaction or ownership takes place. When the Power of Attorney is used to open a bank account, the principal must authorize the agent before opening the account.The most common type of Power of Attorney is an "assumption of responsibility" or ACID. This is a broad term that describes any Power of Attorney that authorizes the individual to make financial decisions about investments, managing personal belongings, planning for the minor's education, and so on.
For example, a Power of Attorney to manage finances might allow the individual to make decisions about investing or borrowing money, but not to make medical decisions or hire a lawyer. The Power of Attorney may also allow the individual to manage personal belongings in some cases, such as purchasing motor vehicles.The Power of Attorney granted to another individual gives that individual the legal authority to act in the principal's name, and the Power of Attorney is considered a legally binding contract between the two parties. If the Power of Attorney is revoked, the person who granted it will become immediately responsible for all of the principal's activities, unless otherwise agreed. If the Power of Attorney is revoked because the person no longer has the legal authority to do the things it allowed the person to do, the individual may be penalized for fraud or misusing the Power of Attorney. However, the penalty must be repaid within a reasonable time period or the Power of Attorney may be revoked.
Colleen Marie & Associates
1470 Powell Rd., Oceanside, California 92056