posted 06-27-2001 08:47            

Thank you for the suggestion and the very clear explanation.

posted 06-27-2001 11:04            

quote:

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Originally posted by Diane:
Some people set up a living trust for this purpose and name as beneficary or benficaries whomever they want to succeed them in ownership a their death. Avoids any probate anywhere. I don't know exactly where but I think there are forms on line to help you do this if you want to tackle it yourself. If not online the law section of of any good sized bookstore will have something on setting up your own trust. Of course you can hire any attorney, but for the money invested in most SA timeshares (at least ours) it would not be worth it. It is something to pay attention to because the obligation to continue making maintenance payments does not stop at your death and could complicate the closing of your estate. Diane

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Be very careful following this "advice" ... first of all, a trust only avoids probate to the extent that the assets have actually been transferred into the trust (that is, assets that have not been transferred to the trust may still have to go through probate). Second and perhaps more importantly, if your estate is large enough to be subject to estate tax ($675,000 this year; $1,000,000 next year & perhaps greater if the new tax law isn't changed), a bookstore trust probably won't have the clauses necessary to avoid estate tax.

My philosophy is pay a relatively small amount to an attorney now to set up your trust properly or risk paying a much greater amount later to straighten out the mess you've created [of course, since I'm an estate planning & probate lawyer, I admit to being prejudiced ]

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hiteklawyr@aol.com
DISCLAIMER: This is general information and does not constitute legal advice. Your state's law may have an impact on your specific situation. Before taking any action based upon this information, it is essential that you consult your own attorney.

posted 06-27-2001 14:48         

I'd consider Janet's advice. The manager of one of our timeshares personally knows of a real headache situation where
the owner (now deceased) put the timeshare in a trust - using your basic quit claim deed & bookstore forms, and now the whole
thing is in probate because it wasn't done properly. Cost of probate exceeds what he paid for timeshare NEW.

I also hate paying attorney fees (sorry, Janet!) but it's worth the cost to prevent problems. A good attorney can save you lots of headaches, and lots of $$$.

posted 06-27-2001 16:44            

quote:

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Originally posted by Diane:
... How you got anything about estate tax out of it is beyond me. Diane

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That's a good example of WHY you need an attorney to assist in estate planning. Depending upon the size of your estate, a married couple may be able to avoid paying any estate tax if their trust is set up properly. If set up incorrectly, they may pay the government tax dollars that could have gone to their heirs.

I agree with Alicesantamonica who says Nolo Press has some good advice. I often refer my clients to Nolo books [they provide good easy-to-understand information]. However, even Nolo's book says that if the estate is large enough to be subject to estate tax, see a lawyer.

I have no qualms about having my clients save on attorney's fees ... it's good for them & ultimately good for me in obtaining their good will (and referrals). However, when someone is being "penny-wise and pound foolish", I have no sympathy for the consequences.

posted 06-28-2001 13:37            

David may not need estate planning advice, but there are plenty of others who read these posts, and I'm sure Janet was looking out for them.

As for her disclaimer, she is probably legally required to place it since she is posting what could be construed as legal advice - I'm sure she's not licensed in every state where someone will read this board. You will see the same type of disclaimer form a variety of professionals - I had to use one whenever talking about insurance products when I was an agent. Otherwise I could have been accused of "selling" an insurance or investment product without a license.

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Melinda Towne
Owner - Orange Lake Country Club, Kissimmee FL
Owner - Tropical Breeze Resort, Panama City Beach FL