A Living Trust Has Great Benefits
By Saghir Aslam
Rawalpindi, Pakistan
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities)
Living trusts allow estates to avoid probate, the court process that otherwise oversees the paying of creditors and distribution of someone’s assets. Living trusts offer privacy, because probate is a public process, and can make it easier for a designated person to take over for you if you should become incapacitated.
There’s no specific dollar amount of assets for which a living trust becomes a good idea. In many states, probate isn’t a big deal, while in others-including California-probate is expensive enough that the cost of setting up a living trust can be worthwhile. Even in California, smaller estates (those under $150,000) can avoid probate or qualify for a streamlined process that can make living trusts unnecessary.
Those with larger estates may be able to avoid probate using other methods.
The money in 401 (k)s, for example, will pass directly to the beneficiaries you name. In many states, you also can name a beneficiary for a vehicle right on the registration form your car could avoid probate. Some states also offer this “transfer on death” option for real estate.
Living trusts typically replace the need for a will, although a lawyer probably would recommend creating a “pour-over” will to include any assets accidentally left out of the trust. If you don’t have a living trust, you’ll need wills to outline how you want your property distributed. You
You also should create powers f attorney for healthcare and for finances, so that someone you name can make decisions for you should you become incapacitated.
These documents are probably more important than a will because they can determine your quality of life at the end of your days rather than just what happens to your stuff when you’re beyond caring.
Do-it-yourself options are fine if your estate is small, simple, and unlikely to be challenged by contentious heirs.
Each state has specific requirements for making a legal will, which will be detailed in the software or online forms you use.
You don’t have to update a will yearly, but it’s a good idea to at least review your estate documents annually to see if any changes might be needed.
Living trust is almost a basic necessity for each and every one of us. Yet many of my friends that I have talked to as of today still do not have a living trust. It has multiple advantages; one of which is to save tremendous amounts of money, more than 20 years ago, I was involved in a settlement of assets of one of our brother who had came to America 1905 and married locally. When he passed away his grandson came from Pakistan, stayed with us as my father had asked me to help him get his assets and bring them to Pakistan to help his larger family in Pakistan. I obeyed my father, hired excellent attorney at reasonable rate, we ended up making multiple trips each time traveling couple of hundred miles they were many court appearances, witnesses from both sides, attorneys involved, and accountants involved.
The entire procedure took months and the net result was after taking out (paying) legal fees, and accounting fees, as well as other expenses, it was hard to believe that there was nothing left from the assets, it was all eaten up by the fees from both sides. You will be astonished to know that he had to borrow money from us to go back home. I hope you can relate to this and if you don’t have a living trust at the present consider setting up living trust at your earliest convenience. This is just one of the benefits of having a trust.
Second one, is privacy, once you have a living trust everything is distributed privately by the assigned trustee without having to share the information with everyone.
As you can see there is great benefits to have such trusts.
Let me share with you that I brought in some of the best attorneys and accountants and presented to our community the great need for a living trust over 20 years ago. Naturally before I invited these professionals to share the information with my brothers and sisters I had already set up my family’s living trust.
I’m such a great believer in this that I have already set up a living trust for both of our daughters
I hope you can see the great benefits for you and your heirs what a present transfer would be for them.
Naturally as I have always mentioned, I am not an attorney, im not an accountant. I do not provide any advice I am simply sharing with you what has worked for myself and before you decide to have a living trust you must do research you must do your homework, do not take what I have suggested above, all of that is just information.
(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr Aslam does not have anything for sale.)
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