Home   Choices   Definitions   FAQ   Fees   Get Started   Driving Directions

TRUST TALK

by Lou Austin, Attorney-at-law

Good day to you. Allow me to personally welcome you to our website and TRUST TALK. My name is Lou Austin and I have been a living trust attorney since 1981. I am the founder of this law firm, Austin Living Trust, and author of the book, "The Living Trust Alternative.

TRUST TALK is my private corner of our website where I have the exclusive podium to speak out on living trusts. For the past 27 years my mission (some call it my passion) has been to educate the public about living trusts and the many benefits they offer to people like you. I am dedicated to providing accurate information about living trusts so people can make informed decisions about what is best for them and their families, hopefully through a living trust which is the only legal option that completely eliminates probate - at death and incapacity.

TRUST TALK gives me the opportunity to provide timely living trust updates to our many website visitors. I will focus on changes in the law and other issues that affect living trusts, drawing upon my many years of professional experience as a living trust attorney - and my personal knowledge of working with my own living trust.

I am always interested in receiving comments and answering questions about living trusts. So, if you have something on your mind email me direct at:

louaustin@austinlivingtrust.com

Let me hear from you, especially if you have issues that you would like to see discussed in TRUST TALK.

Best regards. Lou Austin

In times of economic uncertainty it is especially important that your living trust is up to date. Take a few minutes to check and make sure all of your assets and beneficiary designations are correctly titled in the name of your living trust. Review your trust instructions to see if they still reflect your wishes and family situation. Otherwise, you risk creating problems and expenses at a time when keeping control and minimizing unnecessary costs for you and your family is critical. Contact us if we can be of any assistance.

FEB-25-08   REMEMBER, WE HAVE REDUCED OUR LIVING TRUST FEES

From some of the recent phone calls we have received, there are a lot of people who still don't know that we have lowered our simple living trust fee from $1190 to $990 (single person or couple).

New computer upgrades have produced office efficiencies for us so we decided to pass some of the savings on to you. You should know that the cost of a living trust can vary by many hundreds, even thousands of dollars, so it is absolutely in your best interest to shop around and compare fees and what is included.

We believe there should be no mystery to understanding the exact cost of a living trust right up front - before any work is started, and for more than 25 years we have welcomed the chance to answer questions about our competitive, flat rate, all inclusive living trust fees and services.

All you have to do is call us.

FEB-21-08   COMING SOON. . . AUTOMATIC LIVING TRUST EMAIL UPDATES DIRECT TO YOU

We will soon be adding a living trust email update service to our website. This free service will allow subscribers to receive living trust updates by email at the same time they are posted to our website. Let us know if you are interested in subscribing to this free and confidential service. Our email address is: avoidprobate@austinlivingtrust.com

FEB-19-08   FAILURE TO CORRECTLY REFINANCE LIVING TRUST REAL ESTATE CAN EXPOSE IT TO PROBATE

First, remember the basic rule: All real estate you own must be correctly titled in the name of your living trust or it is not a part of the trust and subject to probate. Titling real estate in living trust name requires a deed from you as the individual owner to you as trustee of your living trust - and the deed must be recorded in the county where the real estate is located.

You should know that some lenders will make a loan on real estate titled in trust name. If so, the loan will be to your living trust as borrower and nothing further needs to be done.

Many lenders, however, require the real estate be removed from living trust name before they will make the loan. This is OK provided the property is retitled to the trust after the loan is closed. Unfortunately, lenders aren't aware of this step or just assume you will take care of it yourself after the loan is closed. And since many people don't even know that this has happened, the result can be a probate disaster.

In summary, if you have a living trust and own real estate you should immediately verify that it is correctly titled in your living trust name - especially if you have refinanced or purchased new real estate since your living trust was set up.

Feel free to contact us should you have any questions.

FEB-14-08   DANGER STILL LURKS IN DO-IT-YOURSELF LIVING TRUST PLANS

You may have noticed the recent surge in celebrity advertisements promoting do-it-yourself living trusts. Some offer on-line forms and others will actually help you fill out the forms with the help of a non-lawyer with the disclaimer that they do not provide "legal advice".

All of this do-it-yourself living trust sales hype does draw attention to the need to have a living trust which is good. However, we have witnessed many self-help living trust promotions since we first wrote about them in our 1988 book, The Living Trust Alternative. Over the years we have seen living trust kits, forms, mail order packages and more recently on-line forms and living trust services operated by non-lawyers. You should know that the red flags we raised back then and over the years since are worth repeating today, because do-it-yourself living trust programs do involve risks for you, your family and your assets.

Some of these plans contain misleading, even incorrect information.

The quality of the living trust forms can vary greatly - many are obsolete and do not reflect changes in the law (medical privacy regulations, retirement benefits, estate taxes, etc.) that can affect living trusts.

Because these plans are generic in content, they cannot begin to address every family's unique situation and needs (not to mention the difference in state laws).

Our many years of living trust experience has shown us that the majority of our time is spent answering our client's questions and providing them with legal advice about living trusts. This attorney involvement allows our clients to fully understand the legal aspects of a living trust so that they can make informed decisions about what is best for them and their family. We also provide our clients with updates about changes in the law that might affect their living trust - and we are available to answer questions to make sure our clients are fully protected.

Interestingly, our flat rate pricing is very competetive with the do-it-yourself plans, especially the ones that use a non-lawyer to help you fill out trust forms. You can invest a few dollars more to have all of the benefit and peace of mind that comes with having an experienced living trust attorney advise you and prepare the legal documents for you.

Obviously, the choice of how to go about setting up your living trust is yours, but remember, we're talking about your family here. At the end of the day a living trust is still a legal document and if it is not prepared correctly or updated as necessary to reflect changes in the law and your circumstances, the result can be an unintended disaster for you and your family.

FEB-10-08   DO YOU HAVE A TAX PLANNING LIVING TRUST THAT YOU NO LONGER NEED?

Tax planning living trusts are generally recommended for married couples with estates large enough to be subject to the federal estate tax. Done correctly, a tax planning trust provides a double benefit: It avoids all probate at the death of each spouse, and it can reduce or eliminate the federal estate tax, resulting in significant savings for the heirs. (Note: A will with tax planning provisions will reduce or eliminate the same amount of federal estate tax, but requires probate at the death of each spouse.)

Many tax planning living trusts were set up when the federal estate tax exemption was much lower than it is now. For example, the exemption has increased from $600,000 per person in 1997 to $2 million dollars per person in 2008. In 2009 it will go up to $3.5 million dollars per person.

Because of the exemption increases, many married couples no longer need tax planning provisions in their living trusts. We recommend that married couples who qualify, amend their living trust to eliminate the tax planning provisions which converts it into a simple trust. Conversion will save a lot of expense and will greatly simplify the trust administration and settlement process at the death of each spouse.

We have found that many married couples aren't aware they have a tax planning trust or don't realize that they no longer need the tax planning provisions. In addition, you should know that some ttorneys routinely set up tax planning trusts for all of their married clients - whether they needed the provisions or not. Contact our office and schedule a free consultation to determine if you have a tax planning living trust and if you qualify for conversion into a simple trust. We regularly handle trust amendment services for both Austin and non-Austin trust documents. We will welcome the opportunity to work with you.

FEB-05-08   MAKE SURE YOUR LIVING TRUST DOCUMENTS COMPLY WITH MEDICAL PRIVACY LAWS

Increasingly, changes in the medical privacy laws are adversely affecting existing living trust documents, especially those that are more than five years old. For example, the new laws may prevent your designated health care agent from being able to handle your affairs without going to court. Court intervention may also be required before your successor trustee can take care of your financial matters on your behalf. Conflict between the privacy laws and your living trust documents can easily result in loss of control and privacy, unnecessary delay and expense and increased emotional stress upon your family and loved ones - at a time when they least need additional hassel.

Understand that this medical privacy issue can affect any estate planning documents so make certain you have your documents checked and updated if necessary. We can provide this service for Austin and non-Austin documents. Give us a call.

And, if you are one of the majority who haven't done anything at all consider this as your wake up call to immediately take action to protect yourself. This might be one of the most important decisions you will ever make, because failure to have proper medical and financial authorization documents in times of illness or incapacity can have disasterous financial and emotional consequences for you and your family.

FEB-01-08   WHAT'S NEW AROUND AUSTIN LIVING TRUST?

Looks like our law firm is going to be in the center of the massive 400+ acre redevelopment of the Bannister Mall area. As recently reported: "The nearly $1 billion Three Trails Redevelopment plan calls for an 18,500 seat KC Wizards soccer stadium, 12 youth athletic fields, a 250 room hotel and up to 1.1 million square feet of retail plus 1.7 million square feet of office space".

The name "Three Trails" comes from the Santa Fe, Oregon and California National Historic Trails which cross through the area. In fact, the actual historical trails alignment is just a few hundred feet north of our law office.

We are very excited about the Three Trails project. It will greatly enhance and upgrade the entire area. Demolition of the mall and stadium construction is scheduled to begin this summer.

You should know that one of the main reasons the Bannister Mall site, adjacent to I-435, was chosen by the Three Trails Redevelopment group is because of its accessibility. Now that the $250+ million 3-Trails crossing (formerly the "Grandview Triangle") is completed, the redevelopment project and our office are just a few minutes from any place in the metropolitan are. We know how important convenience and time are to our clients which is why we picked this location back in 1985. In addition to ease of access for our clients, we offer free ground level parking directly off Bannister Road right outside our front door.