What is a Statutory Durable Power of Attorney, and how can it help me? "WHY DO I NEED A WILL? I DON'T HAVE ALL THAT MUCH. My husband and I are both 28 years old, and our son is almost two. We don't have all that much property yet, but we did recently purchase a house and a couple of life insurance policies. We have been told by a number of people that we need wills. Why do two people as young as we are need wills?" Everyone who owns property or who has minor children should have a will. There are at least six good reasons why. First, you can direct who receives your property. Without a will, you leave the … [Read more...]

"My wife and I have accumulated several million dollars, and we've been told we need to create a "bypass" trust. What is it, and how can it help us?" A bypass trust (often called a "credit shelter" trust) is usually created at death as a way to save estate taxes. In order to explain the concept behind a bypass trust, two general estate planning principles must be understood. First, on the death of a spouse, property left to the surviving spouse passes estate tax free, regardless of the amount transferred (called the "unlimited marital deduction"). Second, everyone can give away up to $1,000,000 (in 2002) estate … [Read more...]

What exactly is the purpose of setting up a living trust? What are the pros and cons? Is there a minimum amount of property where it make sense? A Living Trust is an ownership arrangement where property is held in the name of a "trustee" rather than in the name of the person who really owns the property (called the "Grantor" or "Settlor" of the trust). As the legal owner, the trustee generally has the right to manage, administer and dispose of the property. The beneficiary is typically entitled to all the benefits of the property, including its income, appreciation and use. The trustee can be, and often is, the … [Read more...]