Trusts, Wills, Probates, & Golfing in heaven...

[GQBlues]

Since back in the days when I was still a snot-nosed kid and literally had no one to show me along the pitfalls of life and living, I've always tried to 'plan' things since I have limited resource to live by, and whatever I do have I wanted to make sure I was diligent enough that nothing falls by the wayside...
 
So now I have a schedule to meet with an attorney and to finally get something done with which I feel is so very important. That is, what happens to the people I leave behind when I grab the proverbial pebble in Peter's hand and he tells me it's time for me to tee off in heaven....
 
Admittedly, I don't have any experience in dying. I've never done it before so please, technically I'm a newbie in that sense, so be gentle with me.
 
I live in California and while this isn't your fault, I have not one iota of an idea how the whole probate process works in the event of my death. I recently found out there actually are differences between 'Last Will', 'Living Trust', 'Living Will', & 'Black Jack'. For the life of me, why they make this much more complicated than it really has to be is beyond me. But that's what I have to play with, that's what I'll do.
 
I don't put too much trust in lawyers but like everyone else, you still consult one and you still pay them good money just to add to your skepticism...
 
My situation: There's my numero uno concern - wifey. I would like for her to be 'happy' and secured when I leave her with my sexiness. Then there's of course my siblings and a few notable important people in my life whom I would like to leave a little bit of 'me' in the event of my demise as well. For all those who aren't afraid to discuss things like this - what is the preferred / best way to get this done? I know it doesn't seem kosher, but let's face it, sooner or later we'll all cross that hash mark.
 
I would like to get *opinions* on what's the best way to get things done. Last Will? Living Trust? Living Will?...then the proverbial 'why'?

[Boethius]

Anyone with assets and/or children should have a Will ("last will" - it takes effect on your death).
 
A "living trust" is a trust created during your lifetime.  In Canada, it is called an "inter vivos trust".  Living trusts have tax consequences.  They are a way to control assets during your lifetime, but can also provide for the disposition of assets on death.  You need a professional to establish this, primarily because of potentially adverse tax consequences.  They usually are established to minimize tax. 
 
A "living will" or "personal directive" (in some jurisdictions) is a document which authorizes whoever you appoint to make decisions about your person should you lose mental capacity.  The person appointed decides what medical decision are made on your behalf, and who can make the decision to "pull the plug".  You should have a power of attorney in conjunction with a Living Will, though you need not appoint the same person in both documents.
 
The best way to get this done is to retain a lawyer.  One who knows what he/she is doing.  Discuss your wishes with your wife and family members, particularly anything that may be contentious.  If your wishes are known, typcially, disputes after death are minimized.

[GQBlues]

Thanks Boethius...
 
So if I am not mistaken, I can actually get the 3 filed and executed? Or will this be somewhat of an overkill? The Last Will is a given, of course. But the other 2 dive into something 'more' and beyond a simple 'LW' e.g. a) State probate (there's actually a lawful step to negate this process and not have the dispersions of my asset appointments delayed by the state), b) The appointment of Power of Attorney in the event I can no longer make decisions on my own (when have I ever, right?)

[Boethius]

You don't file a Will anywhere in Canada, although some provinces have Will registries.  I don't know the case in California, I assume the Will is not filed.  In law, a Will speaks on death.  It has no validity until then, and you can revoke it at any time if you have mental capacity.  Typically, you give a copy to your named executor, and you could give one to significant beneficiaries.
 
You will have to discuss with a lawyer whether a Living Trust makes sense in your particular situation.  You should see a trust and estates lawyer to determine if you need this.
 
Living Wills are important if your family may disagree.  Think Terry Schiavo.  It's rare, but not unknown.  If your relatives would all agree to do what you want, you don't really need one.  By law, your wife makes that decision.
 

[GQBlues]

>>Think Terry Schiavo<<
 
Yup. That's actually my biggest scare more than anything. I've seen that fate befallen both my natural father and a dear friend of mine. I have already conducted a discussion about this with my 3 brothers and had come to a decision on whom. With my wife's full understanding and blessing of course.
 

The probate segment is something I can't get a full grasp on since while I am not a rich dude, I do have situations that 'may' render some possible complications in the future. Not solidly but something I better get clarification on. Definitely on tap-for-chat with counselor.
 
Thanks...

[alex330]

You will have to discuss with a lawyer whether a Living Trust makes sense in your particular situation.  You should see a trust and estates lawyer to determine if you need this.

From my understanding a Living Trust is normally used to avoid probate. General guidelines advise this if your assets exceed a million bucks I have been told.
But I would consult an attorney as Boethius mentioned.

[Faux Pas]

GQ,


Certainly I am no expert and Boethuis has the expertise even if it is Canadian but one bit of advice. Your first area of concern you mentioned is the wifey in the event of your demise. Focus first on your last will and testament. It directs all of your financial intentions that can easily get skewed, disolved or diverted in the event of your early demise. The rest, living will ect. is important for some but not as vital as your will where your wife is concerned IMHO

[LAman]

GQ,
While I am also not an expert either, I do have some info we used to get my mom's revocable trust.
 I know in trust it does appoint someone to make decisions involving power of atty, medical decisons ,any assets/property(in trust) left behind and who it goes to all spelled out. This was to avoid probate(CA) where court fees and attorney fees would be paid by the estate.
I think will's are just basically naming where all assets/property goes...subject to probate.
Of course all property would get step-up in cost basis(inheirited property ).
Just what little I know....or don't !!
 

[Boethius]

A living trust does not deal with medical decisions or a power of attorney.  In California, I believe the document dealing with medical decisions is called an advanced health care directive. 

[Shadow]

I think you already got the advice you need.
Now as for you being a newbie in dying.... need any help there ? 

[BC]

Now as for you being a newbie in dying.... need any help there ? 

Yeah, comfort me by showing that WM married to FSUW live longer....

[tfcrew]

You don't file a Will anywhere in Canada .....
You will have to discuss with a lawyer whether a Living Trust makes sense in your particular situation.  You should see a trust and estates lawyer to determine if you need this.
 

Unless you are a millionare, you don't need a living trust or a lawyer for that fact.
Make out a will...designate a executor ...  and give all those concerned a copy.

[Boethius]

There may be situations where a Living Will makes sense without the million dollar threshhold.

I've seen the effects of not using a lawyer (litigation, where half the estate is absorbed by legal fees).  For the minimal cost, I would always have someone who knows what they are doing prepare these documents.  The key is someone with a specialty in the area.

[LAman]

A living trust does not deal with medical decisions or a power of attorney.  In California, I believe the document dealing with medical decisions is called an advanced health care directive.
[/quote
Sorry, Boethius, but my mom's  living trust does designate who has power of attorney and medical decisions...... in case of her state of mind(incapacitaded). I have not heard of AHCD...it is not in living trust paperwork.Then again.....I am only speaking of CA.
It is best to get info directly from lawyer.....

[LAman]

Unless you are a millionare, you don't need a living trust or a lawyer for that fact.
Make out a will...designate a executor ...  and give all those concerned a copy.

This is fine as long as you know 'will' will go into probate and attorneys and courts will be paid from estate.

[Boethius]

It is best to get info directly from lawyer

Absolutely.

I have worked with US attorneys on cross border estate plans in the past, so I do have some familiarity with these documents though granted, it's limited and I'm certainly no expert.  The trust concepts are almost identical in Canada, the UK, and the U.S.  The tax consequences, though, are very different. 

Last year, I worked with a prominent estates lawyer in San Francisco on a cross border estate.  The clients are Americans who live in both Canada and the U.S.  I did the Canadian Wills/directives/powers of attorney.  He prepared a Living Trust (significant US properties, worth maybe $15 million), and he also prepared separate powers of attorney (outside the Living Trust) and advanced health care directives (what GQ referred to as a "Living Will").  We reviewed each others' documents, as we needed to coordinate our tax plans, and also needed to ensure nothing in either set of documents conflicted.   

I suspect even if these can all be contained within one document, most lawyers would prepare separate documents because of confidentiality.  If you are appointed as an attorney in Living Trust, wouldn't you need to show anyone who holds your mother's assets a copy appointing you as the attorney?  Same with making guardianship decisions.  So then, wouldn't anyone who reviews the appointment of the attorney or the guardian get access to a list of all your mother's assets (listed in the Living Trust)?

In Canada, hospitals keep a copy of the Personal Directive (the directive appointing someone as your guardian in the event of mental incapacity) on file, and banks keep powers of attorney, when activated, on file as well.

[GoodOlBoy]

Not trying to be to macabre here GQ, but have you discussed with wifey what you want done with your remains (buried, cremated, etc.)?
 
What you want on your headstone (EX: "Here lies GQ buried face down, so the whole world can kiss his ass.") 
 
I have made up a folder and put it in my metal file cabinet. In the folder are all the details and documents that wifey needs to git-r-done.
 
I told Marina that I want to be buried in the same National (veteran's) cemetery as my Dad up in Palm Beach.
 
Heck why not, it's free!
 
GOB

[Boethius]

Heck why not, it's free!

I had a client, worth about $50 million (over half of it in cash), who stipulated his body was to be donated to science, and his rationale was his estate would not have to pay for a funeral.

[tfcrew]

There may be situations where a Living Will makes sense without the million dollar threshhold.

 

A 'living will'...
Has nothing to do w/heirs..attorneys.. probate etc

An advance health care directive, also known as living will, personal directive, advance directive, or advance decision, are instructions given by individuals specifying what actions should be taken for their health in the event that they are no longer able to make decisions due to illness or incapacity

http://en.wikipedia.org/wiki/Living_will

[Boethius]

Yes, I meant Living Trust - multitasking.

In Canada, the equivalent is an "alter ego trust", and it can only be made by someone who is 65 or older.

"Living Wills" have various names.  Where I live, they are referred to as "personal directives".  In CA, they are called "advanced health care directives".

[GQBlues]

Thanks for chiming in here folks....
 
We met with a counsel over the weekend along with Mumski and there has been quite a few revelations that I never paid much attention to before that caught me somewhat off-guard. In a good way. Although it did opened up other cause to make this a bit more time-consuing thnt I had originally hoped.
 
Thy 'will' be done. That's the easy part. Power of Attorney, no problemo...as for the LT, tying up loose ends will help immensely. I'm not chowing down on some Sunset Bl. chic eateries with some celebrated clowns living up along the hills...but I do have a cause to consider avoiding the proverbial probate opportunists if at all possible.
 
There is that silly and unavoidable sense of creepiness and morbidity in all of these. One of the more stranger meeting I've ever had. Too many things to do and take care of...
 
Dying is certainly easier, it seems.
 
LOL, GOB...I'm more the 'fetal position' sleeper so even in death I can't fathom being put away in one position so I'm opting for the roast special treatment of the crematory. Sprinkled somewhere in the blue of the Pacific, along with the cremated remains of my kitties, so we can all be food for the fishes somehow. The world needs sexy fishes...

[BC]

LOL, GOB...I'm more the 'fetal position' sleeper so even in death I can't fathom being put away in one position so I'm opting for the roast special treatment of the crematory. Sprinkled somewhere in the blue of the Pacific, along with the cremated remains of my kitties, so we can all be food for the fishes somehow. The world needs sexy fishes...

I was thinking about having my ashes compressed into a few small diamonds to pass on....

Made in RU BTW..

http://www.ecofriend.com/entry/diamonds-made-from-human-hair-dog-hair-and-cremated-ashes/