 About
Our Firm3/14/2006 |
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| Johanson, Koons & Constantino was founded
in 1984 by T.L. Johanson.With a backround
in the land title industry, Mr. Johanson quickly
established the firm as a leader in Auburn
in providing legal services to institutional
and individual clients with disputes involving
land title, easements, boundaries, leases
and contracts. With numerous clients in the
title, escrow, banking and construction business
the firm has maintained a local reputation
for excellence in the cost effective resolution
of disputes in real estate and business either
through negotiation or litigation. The firm
has also assisted families and individuals
with estate planning, probate and related
services in conservatorships and guardianships
for the past 20 years. In the 1990’s
the firm began successfully resolving numerous
cases involving land casualty occurring through
fire, unlawful timber harvests and chemical
intrusions leading to multimillion dollar
settlements. A list of the firms representative
clients is available upon request. |
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Create and Fund a Revocable Living Trust |
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A revocable living trust is similar to a will-both
are legally binding documents that leave money and
property to loved ones at your death. However, a
trust requires that you appoint your-self or someone
you choose, a trustee, to manage and distribute
assets in the trust during your lifetime. You may
put some or all of your money and property into
the trust. If you name yourself trustee, you'll
be in control of the assets.
If you do choose to serve as your own trustee, you
will still need a backup to take over should you
become incapacitated or die. Pick someone who is
capable, trustworthy and willing-usually a spouse,
relative, close friend or professional trustee.
Professional trustees can be found at local banks
and trust companies. Compare the results of their
investments over the last few years. Even after
choosing a trustee, you can replace that person
at any time.
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Creating and funding a living trust often saves
you money, since the cost and time required to distribute
assets held in a trust are usually significantly
less than transferring assets under a will. Many
people think a will avoids probate. This is not
true. Assets passing under a will must go through
probate. Probate involves filing and verifying the
will with the local court, appraising property,
paying debts and taxes, and distributing the remaining
assets to the heirs.
Besides avoiding probate, living trusts can provide
other benefits that a will can't. Suppose you leave
your estate to your son in your will. What happens
if he later divorces or dies? His wife ends up with
much or all of your funds. Your son's wife (or ex-wife)
could then leave your money to anyone she chooses
at her death-omitting your son's children (your
grandchildren) entirely. With a living trust you
can guard against such a scenario, making sure your
grandchildren benefit from your estate. You would
name your son as your successor trustee, allowing
him to draw income (and possibly principal) in his
lifetime. At his death (or when he reaches a designated
age) the trust would end and the funds would be
distributed to his kids.
A living trust can also protect your children's
or grandchildren's probate inheritance until they
are responsible enough to handle it themselves.
You can name a more responsible family member as
successor trustee to keep control of the funds for
children or grandchildren until they are 25, 30,
40 or even older. You decide when the time is right.
In the meantime, the heirs can get money from the
trust as they need it for school, health care, and
other worthwhile purposes.
Finally, if you are remarried and wish to leave
money or property to children from a prior marriage,
a living trust is invaluable. In some states, assets
in a living trust that pass to children at death
cannot be intercepted by a surviving spouse. But
if you have only a will, chances are your spouse
will receive a sizable portion of your estate-even
if the will leaves everything to your children. |
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| Frequently
Asked Questions about Probate and Estate Administration: |
| Q: What
is the purpose of the probate procedure? |
| A: The probate
procedure is the court procedure by which
a will is proved to be valid or invalid. Creditors
of the estate have the opportunity to file
claims against the estate and receive payment
of those claims. After the administration
fees and creditor claims are paid, the assets
of the estate are distributed. |
| Q: What
are methods for preserving assets of the probate
estate? |
A: There
are many ways to preserve probate estate assets.
In association with an attorney and tax advisor,
you can:
- Determine whether
administration expenses and casualty losses
should be reported on the estate tax return
or on the estate's income tax return.
- Consider whether
there are income tax savings opportunities
on the decedent's final return (such as
whether or not a joint return should be
filed with the surviving spouse).
- Consider whether
assets should be valued at the date of
the decedent's death or six months later
(or, if the assets have been distributed
prior to six months after the decedent's
death, the date of the disposition of
the assets).
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