Choon Yong-ACE Class Report:Wills and Trusts

Author of Book: Instructor: Shans Ohanian
Date Read:

Book Report

ACE Class Report – Wills and Trusts.
Begin: 2/9/2024
Finish: 3/4/2024
Title: Understanding Wills and Trusts.
Instructor: Shans Ohanian

Why I choose to take this class:

Look at options to transfer my assets and properties to my spouse and family. Understand the differences and to eliminate probate court for distribution of property and also to ensure my spouse continue to live in our property until her demise.

What I learned from this class:

A will is a document that disposes of a person’s property after death. Most wills are prepared by lawyers to ensure formal legal requirements are met. However, there are new Wills and Trusts software available online that can do the same job as lawyers. A person may die Intestate (without a will). The person’s property then is decided by the state law, to individual spouse and relatives. If the person has no spouse or relatives; the individual property may Escheat( transfer) to the state which the person lives. A trust offers more security than a will. Wills are public records and can be accessed by anyone to evaluate how much debt or money you have. Having your property passed along under the terms of a trust avoids the creation of public records that result from court involvement. A trust can protect against costly probate, secure sensitive information, guard assets from lawsuits and even prevent turf wars by surviving children. Probate can be expensive and time consuming especially in California, Florida and New York. There are no provisions for disability in will, the disabled person’s assets will be subject to a court process for guardship unless there is a power of attorney. Whereas a trust continue to privately manage assets if the grantor is disabled, without any need for court involvement. There are minimal effort for Wills (unless you are tax planning via a Will would require retitling of assets). Some effort for Trusts to transfer assets to trust ownership, will usually cost less if there are no tax planning is needed. The cost difference between will and trust diminishes if you are doing tax planning. Cost for will will be minimal for simple estate but can be extremely high i.e.. contested probate, ancillary probate, conservatorship, etc.. Whereas in a trust it is usually minimal.

A revocable Trust is created while a person is still alive, it allows the grantor to retain control of assets and properties while arranging for a Trustee to step in and manage things is case of disability. Trust can efficiently allocate assets to the younger generation. While a will can do the same thing, a Trust is more difficult to challenge and has the advantage of avoiding probate.

Revocable versus Irrevocable Trusts:

A trust can allocate assets to the younger generation can be revocable, but it has inherent risks, then all the asset will remain under the ownership of the grantor. As a result, the assets may be attacked by creditors, lost in lawsuits, or even seized for any nursing home bills incurred by the person who establishes the trust. An Irrevocable trust is set up to avoid this potential risk.

How will this class contribute to my success upon release:

The understanding about Wills and Trusts will help me protect my family, tax planning and avoid probate after my demise. With proper Will and Trust in place it will allow me to live without worry of succession and to ensure my wife is taken care of until her demise.