Search
  • Kyle Clark

Avoiding Probate: Pour-over Wills and Trusts

If you would like to schedule a consultation with an estate and trusts planning lawyer, please click here.


HOW CAN I AVOID PROBATE? The most common question I have received when helping people plan their estate distribution is this "How can I avoid probate?" The short answer tends to be: "Put property in trust."


Although trusts may not be appropriate for all individuals, for example those with a large outstanding mortgage or assets of only a few thousand dollars, trusts can be very useful for a large number of individuals. More importantly, if drafted correctly many trusts can avoid the lengthy probate process which may take as much as 6 months OR MORE before a beneficiary can use, sell, transfer, or assign that property.


WHAT IS A TRUST? Simply put, a trust is a document that tells an appointed individual of your choice, the Trustee, how to handle your property, The Estate. This can be done by drafting deeds to transfer property to the trust, changing beneficiary declarations to the Trust's name, and most importantly - by drafting a Trust Agreement (or Trust Declaration). Although a trust is not a tremendously complicated document, its execution and drafting have a huge impact so many individuals should consider hiring an estate planning lawyer for this purpose.


HOW DOES A TRUST IMPACT TAXES? Most lawyers do not have a CPA license, nor do they know the Internal Revenue Code with expertise. Typically, if you place property in a revocable/living trust, and you have only a few million dollars in assets, then a trust will not be much different than a will for tax purposes. But before making any decisions regarding taxes, you should always contact a skilled accountant or tax preparer who will have greater familiarity with the Internal Revenue Code.


If you have any questions concerning estate planning or trusts, please click here to schedule a free consultation or call (256) 361 - 9829.


7 views

Recent Posts

See All

© 2020 by Kyle D. Clark, Attorney-at-Law LLC. 

  • Facebook

Alabama law requires the following statement: “No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers."

 

Bankruptcy Clients: We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

 

*Free consultations are available for estate planning, debt relief, and bankruptcy clients only. Due to the significant volume of family law consultations, a fee is charged for any family law or divorce consultation.

Past performance and client testimonials should not be construed as a guarantee of future success. Each client's matter must be evaluated on the merits, and a thorough conflict-check must be performed before an attorney can form an attorney-client relationship.