Probate is simply the Latin word for prove, which means that the estate probate process is the process by which your will is brought before a court to prove that it is a valid will. The courts charged with this responsibility are generally known as probate courts, which may actually supervise the administration or settlement of your estate.
Supervision of the estate settlement process by the probate court can result in additional expense, unwanted publicity and delays of a year or more before heirs receive their inheritance. The publicity, delays and cost of probate motivate many people to explore ways in which to avoid or minimize the impact of probating a will, including:
State Statute If specific requirements are met, many states have made provision for certain estates to be administered without the supervision of the probate court, resulting in less cost and a speedier distribution to heirs.
Form of Property Ownership The joint tenancy form of holding title to property allows ownership to pass automatically to the surviving joint tenant, who is normally the surviving spouse.
Transfer on Death Many states have enacted Transfer on Death statutes that allow a person to name a successor owner at death on the property title certificate for certain types of property, including real estate, savings accounts and securities.
Life Insurance Unless payable to the estate, life insurance proceeds are rarely subject to the probate process.
Lifetime Giving Gifts given during life avoid the probate process, even if made shortly before death.
Trusts A “Totten” trust, which is a bank savings account held in trust for a named individual, can be used to pass estate assets at death outside of the probate process.
A revocable living trust, created during the estate owner’s lifetime, can be an effective way to avoid the expense and delay of probate, while retaining the estate owner’s control of his or her assets prior to death.
Proper planning may serve to minimize the impact of the probate process on your estate and heirs.
Any potential method of avoiding probate, however, should be evaluated in terms of its income and/or estate tax consequences, as well as its potential impact on the estate owner’s overall estate planning goals and objectives.
from the Masters…
TOP THREE KEYS TO GREATNESS
by Jim Rohn
Several years ago I went into the studio and recorded a 56-minute video for teenagers called “Three Keys To Greatness.” Although my focus was for teenagers, the principles I shared certainly apply to adults as well.
Recently I was asked to list these three things using one to two sentences for each. Now for your benefit here they are again.
1) Setting Goals. I call it the view of the future. Most people, including kids, will pay the price if they can see the promise of the future. So we need to help our kids see a well-defined future, so they will be motivated to pay the price today to attain the rewards of tomorrow. Goals help them do this.
2) Personal Development. Simply making consistent investments in our self-education and knowledge banks pays major dividends throughout our lives. I suggest having a minimum amount of time set aside for reading books, listening to audiocassettes, attending seminars, keeping a journal and spending time with other successful people. Charlie Tremendous Jones says you will be in five years the sum total of the books you read and the people you are around.
3) Financial Planning. I call it the 70/30 plan. After receiving your paycheck or paying yourself, simply setting aside 10% for saving, 10% for investing and 10% for giving, and over time this will guarantee financial independence for a teenager.
If a young person, or for that matter an adult, focused on doing these three simple things over a long period of time I believe they will be assured success!
To Your Success,
Brought to you by:
Mark Holland, JD
Cambridge Financial Center
1942 Berkeley Street
Salt Lake City, UT 84108-3202
About our firm:
Hello, my name is Mark Holland and I thank you for your interest in learning more about the world of money. I bring a simple method to money management that can best be explained by the Japanese word “kaizen,” meaning “change for the better”. My web site, www.markhollandinsurance.com, and my monthly newsletters are chock-full of financial tips to help you understand how money works, how to take charge of the solutions to your financial and life concerns, and how exciting, liberating and satisfying provident living can be, even in this difficult economic environment.
from the Masters…
“What we see depends mainly on what we look for.”
– John Lubbock
“Age is a matter of feeling…not of years.”
– George William Curtis
“Watch your manner of speech if you wish to develop a peaceful state of mind. Start each day by affirming peaceful, contented and happy attitudes and your days will tend to be pleasant and successful.”
– Norman Vincent Peale
“You can do 99% of the things right but not posses a winning attitude, and you will fail.”
– Art Williams
On Change/ Choice
“I used to say, ‘I sure hope things will change.’ Then I learned that the only way things are going to change for me is when I change.”
– Jim Rohn
“To improve your life, be prepared to make new choices and decisions.”
-– Brian Tracy
“Are you a thermometer or a thermostat? A thermometer only reflects the temperature of its environment, adjusting to the situation. But a thermostat initiates action to change the temperature in its environment.”
-– Nido Qubein
“You must be on top of change or change will be on top of you.”
-– Mark Victor Hansen
The purpose of this newsletter is to provide information of general interest to our clients, potential clients and other professionals. The information provided is general in nature and should not be considered complete information on any product or concept described.
For more complete information, please contact my office at the phone number above.
Published by The Virtual Assistant; © 2012 VSA, LP
We don’t want to add to your e-mail clutter! If you do not enjoy my newsletter, just reply to this e-mail and ask to be removed or call my office.