Joe Volin's 12-Part Personal Guarantee

17 Tragic Misconceptions About Wills and Trusts

7 Potential Problems With Living Trusts

9 Dangers of Owning Property in Joint Tenancy

10 Fatal Mistakes That Tear Families Apart

Solutions to 15 Problems That Could Cost You a Fortune

Your Estate Plan Needs Maintenance

How to Choose a Qualified Lawyer

12 Tough Questions to Ask a Lawyer

Quiz for Estate Planning Lawyers

How I Calculate Legal Fees

Testimonials from Clients and Professionals

Continuing Education Courses

Problem #1: Probate. Probate is the court-supervised process of passing title and ownership of a deceased person's property to his or her heirs. The process consists of assembling assets, giving notice to creditors, paying bills and taxes, and passing title to property when the judge signs the order. Probate can cost your loved ones 3% to 5% of your estate and take years to complete. Protect your assets from the high cost of probate by setting up and properly funding a revocable living trust. Since the trust you have created actually owns your assets, no probate will be required.

Problem #2: Lawsuits. Protect your assets from lawsuits by doing any or all of the following, as appropriate: (1) purchasing an umbrella liability insurance policy, (2) setting up a family limited partnership, (3) setting up a program for lifetime gifting, (4) setting up a limited liability company, and (5) incorporating.

Problem #3: Estate taxes. Protect your assets from state and federal estate taxes by setting up and funding a tax-saving Marital and Family Trust. Under current law, a Marital and Family Trust will completely protect your assets from estate taxes for estates valued up to $1,300,000 for a married couple. Without this type of trust, beneficiaries who inherit an estate valued at $1,300,000 would be forced to pay over $200,000 in federal estate taxes. In this example, a complete estate plan costing less than $3000 will save you over $200,000 in federal estate taxes. Other ways you can avoid or reduce estate taxes include setting up (1) an irrevocable trust for your children, grandchildren or other heirs, (2) an irrevocable life insurance trust, (3) a charitable remainder trust, and (4) second-to-die life insurance so you can pay estate taxes for pennies on the dollar.

Problem #4: Income taxes. You can lower your income taxes by setting up a family limited partnership to own income-producing property. Then you can make gifts of limited partnership interests to the other limited partners, often your children or grandchildren. They then pay income tax at lower tax rates. A family limited partnership is an excellent tool to shift income to partners who pay taxes at lower rates. It's also an effective way to make gifts and still keep total control of all the property owned by the partnership.

Problem #5: Capital gains taxes. Protect your assets from capital gains taxes by owning your assets as community property, if you are a married couple. This can be done with a community property ownership agreement. On the death of either community property spouse, your entire estate gets a "double" step-up in basis for income tax purposes to the full value of appreciated property, thus avoiding ALL capital gains taxes. You get only a one-half step-up in basis if the property is owned in joint tenancy. Your attorney can set up this valuable tax-saving device at the time he creates your Family Trust.

Problem #6: Spouse’s Creditors. Protect your assets from the claims of your family’s creditors, ex-spouses, and the IRS. Your lawyer can include creditor protection provisions in your Family Trust and help you appoint a properly trained trustee.

Problem #7: Inexperienced Beneficiaries. Protect your assets from being wasted by young or inexperienced family members. Most beneficiaries spend their entire inheritances in less than two years, regardless of the size of the estate or the heir’s socio-economic background. Your lawyer can set up your Family Trust with protective provisions that provide guidance and safeguard your life savings.

Problem #8: Guardianships. Protect your assets from the high costs of incapacity by (1) setting up a living trust so you avoid the need for a guardianship, and (2) drawing up a durable medical power of attorney.

Problem #9: Conservatorship. Protect your assets from the high costs of incapacity by (1) setting up a living trust so you avoid the need for a conservatorship, and (2) drawing up a special limited durable power of attorney for property management.

Problem #10: Nursing home care. Protect joint assets from the high costs of nursing home care. If appropriate, set up an ALTCS trust and spend down your estate until you qualify for governmental aid. Or, buy insurance that covers nursing home care and provides a death benefit that returns the money spent on nursing home care to your heirs.

Problem #11: Unwanted medical care. Protect your assets from unwanted and costly medical care by having a medical power of attorney that spells out which medical care, treatment and procedures you want -- and which you don't want. If you wish, a living will can be incorporated into your medical power of attorney to list exactly what you want.

Problem #12: Unwanted emergency care. Protect your assets from unwanted emergency care. If you have a terminal illness, you can draw up and sign a pre-hospital medical directive that will tell emergency personnel not to resuscitate you in the event of a medical emergency.

Problem #13: Ineffective estate plans. Protect your assets from an ineffective estate plan. Don't depend on pre-printed "cookie cutter" form kits or document preparation services for your estate plan. Contrary to what you may have heard or read, one size does not fit all! You may think you have precisely what you need. But you will never know. Because your family members will have to clean up the mess. You see, after you die, your family members will try to use your documents to settle your estate. And if the documents weren't drafted correctly, they will cause additional expense and long delays because a probate will have to be done to convey title to your assets.

Problem #14: Commissioned salespeople. Don't depend on financial planners or insurance professionals to plan your estate. They simply don't have the knowledge, skill, judgment and experience to handle the many legal consequences of your estate plan. You didn't hire a used car salesman or street sweeper to write your will. Then why would you hire a financial planner or insurance salesman to plan your estate. Your estate plan is too important to entrust to anyone other than a skilled, qualified estate planning and asset protection attorney who is licensed to practice law in Arizona. Of all the estate plans I’ve created, no two of them have been the same. When you die and your family members try to settle your estate, that isn't the time to discover that you hired the wrong person. Do your family a real favor. Give them the greatest gift of love. Make sure your estate plan has been correctly and skillfully set up and properly funded.

Problem #15: Unqualified lawyers. Many attorneys get into estate planning because this area of the law is becoming very popular with seniors. Unfortunately, many of these newcomers don't have the experience needed to be an effective estate planner. I recommend that you choose an independent attorney who focuses his law practice on asset protection and estate planning. This will help insure that the lawyer you choose has the knowledge, skill, experience and judgment necessary to fully protect your family, your money and your property, and to give you advice and counsel that is in your best interest.