***Free Legal Tip Of The Week*** We have all dreamed about it! And most of us happy actively participated in this activity (including myself). What I am referring to is Mega Jackpot "Power Ball" lottery. All of us have thought about “what will I buy first with that money”. In fact last week, a man from Minnesota was one of three people to step up and claim his prize, a jackpot of over 448 million was divided into 149.4million three ways. The gentleman decided to take the lump sum which was 86 million before taxes and 58.3 million after taxes. That’s a lot of money to come into, without any planning, or system in place. And as you know most lotto winners are broke an average of 7.35 years after winning the jackpot. So what should be one of the first things you do after winning the power ball? Create a Revocable Trust. Now there are many different types of Trust to create, some with no heirs to an estate, but with lots of assets (both tangible, liquid and non-liquid). Prefer a charitable trust, something that dissolves after you die but your assets transfer to the charity you decide. Others with heirs prefers a living trust, so you can formally transfer property to your family in avoidance of many creditors, taxes and headaches. So what is a Trust? Simply put it’s a document that operates like a will, except the major key difference is unlike a will. A trust keeps your assets out of probate court. Formally speaking it’s a living document that transfers assets/ property after you die. In the trust you can name your beneficiaries, both primary and residuary. There are several benefits to trust, but one major benefit is that a trust is rarely made public after the trust-makers death. Wills on the other hand become part of the public record. Trust can be both irrevocable and revocable, upon your choosing. And if you are wondering how do I still get paid from my lottery earnings, don’t worry you can direct the trust to pay out a certain amount of income to keep the trust going. You can nominate yourself, or someone ‘trust’ to be the trustee. There are literally hours and hours of lecture dedicated to this subject and it’s simply impossible to explain the entire benefits of a living trust, on a facebook page. However, what I do want to say is that you don’t need to own a fortune to create a trust, just have assets and property you would like to protect. Not everybody is a millionaire, but most people could use the benefits of such a device. Otherwise, you are simply playing lotto with your inheritance, or the things you want passed along generations. And that’s a recipe for disaster. If you or anyone you know has an Estate Planning question, please have them consult an Attorney. Office: 321-332-6136 “Creating A Success Story, One Client At A Time” (Disclaimer- Because of the popularity of ‘free legal tips’ (my inbox messages) I have to note that my tips are strictly Florida Law based, and therefore should not be assumed to apply to your local jurisdiction. Furthermore, a tip taken from my facebook page does not constitute any form of ‘legal advice’ in regards to any specific situation and therefore does not establish an attorney client relationship. You must consult with an Attorney if you want a specific need and/or question answered.)
Posted on: Mon, 12 Aug 2013 15:18:42 +0000
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