Controlling Your Estate

"Avoid Probate"

Presented by

John G. Kenny Trust Counselor Living Trusts, Inc. 5753-G Santa Ana Canyon Rd. Anaheim Hills, CA 92807 (714) 362-4416 (714) 362-3541 Fax "Serving Southern California"

Are your affairs in order? Do you have a current Will? Have you appointed an Executor to take care of your estate? Is there enough cash available for Probate, Inheritance Taxes and for your Funeral?

You should be aware that your estate does not have to go through probate and your family does not have to worry about the immediate need for ready cash for probate fees and inheritance taxes - If you have established a Living Trust.

A Living Trust will protect your estate when you are no longer around and it will make life easier for the ones you leave behind. Establishing a Living trust is one of the smartest and most considerate things you can do for yourself and your family.

If You Die Without A Will - the State will distribute your assets - and it may not necessarily be the way you would have wanted it.

If You Die With A Will - and your estate is in excess of $60,000 or if you own real estate valued at more than $10,000, your Will must go through probate, which can take 18 - 24 months (or Longer if contested).

Besides being time consuming, probate is very costly and can easily amount to 10% or more of your Gross estate and immediate cash may be needed to pay for the Probate, Taxes, Attorney and Executor Fees.

During the probate period, your beneficiaries have little if any control of your assets. Even the Transfer of an estate between husband and wife may require a mini-probate.

If You Die With A Living Trust - also known as a Revocable Living Trust - you avoid probate. This will eliminate the Probate waiting period and the unnecessary Probate Costs including Attorney and Executor Fees, Income Taxes, and greatly reduce the possibility of contesting.

We specialize in writing Living trusts. The Trust we use have stood the test of time since 1983 with revisions as appropriate. They have been reviewed and accepted by countless attorneys and the IRS.

We do not sell insurance or any type of investment offerings nor do we give legal or financial advice. Our involvement with our clients finances is only peripheral. We concentrate on Simple and Uninvolved estates in the $60,000 to $3,000,000 range with the majority of clients being in the $800,000 to $900,000 range. Estates above $3,000,000 are usually referred to an attorney specializing in estate planning. In that case we may also insist on the involvement of your Financial Planner or CPA.

Our services are very complete. We write Single Trusts, Family Trusts, A & B Trusts and Insurance Trusts. These may include Pour Over Wills, Living Wills with Medical POA (Power of Attorney), RegularPOA, Generation Skipping, Disclaimer Trusts or Qualified Domestic Trust provisions as required.

We also provide complete and simple instructions for the maintenance of the trust after the sale. We can also assist in the transfer of assets into the trust if you prefer. We are available for after the sale consultations at NO CHARGE and we encourage questions, phone calls or "E-Mail".

1. A Living Trust avoids probate of all assets transferred into the trust. This saves both Time and Money.
2. An A&B Living trust can avoid payment of inheritance taxes on the first $1.2 million of the estate.
3. A Living Trust creates a 100% step-up basis of real estate owned upon the death of one spouse and greatly reduces the amount of income taxes payable.
4. A Living Trust has built-in conservatorship, eliminating the need for court appointment.
5. A Living Trust offers planned continuity of your financial affairs.
6. A Living Trust assures the orderly transfer of the assets to the beneficiaries with total control vested in your pre-appointed trustee.
7. A Living Trust is rarely contested and details about the estate are not available for public scrutiny.

   ---

Throughout the next few pages we have provided some answers to common questions often asked. If you are interested in obtaining a Living Trust, we would be more than happy to talk with you. Please review the following information and contact us via Fax, "E" Mail or Telephone if we may be of further assistance.

What Is A Living T rust?

A Living Trust is a Legal Document prepared to handle the affairs of your estate in case of your death or inability to act in your own best interests. A Living Trust will protect your estate when you are no longer capable and it will make life easier for the loved ones you leave behind. It will avoid the costly, cumbersome Probate Process and allow your private business to remain private.

How Does A Living Trust Protect Me And My Family?

A properly funded Living Trust offers you continuity of control of your affairs. When we prepare your Trust, it will include provisions for the handling of your affairs after your death and arrangements for conservatorship incase of mental or physical incapacity while you are alive. We can also make provisions for minor children, children of former marriages or grandchildren, even mentally or physically handicapped heirs. Also for any persons you may want to exclude from any claims to your estate. For Peace of Mind and security for you and your loved ones, a Living Trust may be all that you need.

If I already have a Will, do I need a Living Trust?

Yes. Your Will only takes effect after you die and offers no protection if you become mentally or physically disabled. Furthermore, a Will is a guarantee that your Estate must go through probate. Probate is a public process which insures that your personal business will be subject to any curiosity seeker, and generally takes between 18and 24 months to settle. During which your beneficiaries are at the mercy of the Probate Court. The cost of Probate can easily run 10% or more of your Gross Estate and even more if it is contested. The Living Trust is a private matter between you and your trustee, and is not subject to public scrutiny or court approval.

How does a Living Trust allow me to control my Estate?

A Living Trust is created while you are alive. You maintain 100% control and enjoy all the benefits of all your assets in the Trust. You can easily move assets in and out of the Trust or make changes without the need for expensive legal fees. In addition, your Funded Living Trust is a simple method of establishing a Pre-Nuptial Agreement in the case of previously married persons considering a new marriage with extended families. A Living Trust is like signing a contract with yourself, and who could you possibly trust more than yourself? You have all the power to direct all your assets. Furthermore, the Living Trust is revocable, so if for some reason you choose to eliminate the Trust totally you are in complete control to do so.

What about Tax Consequences when I'm gone?

A A Living Trust can help to eliminate or reduce Federal Inheritance Taxes, which otherwise could amount to as much as 55% of your Net Estate after all allowable deductions. It can also greatly reduce or eliminate the amount of Income Taxes that may be payable because of your death, and the need of readily available cash. (For detailed Tax Advantages relating to Your estate, you should consult your CPA or Financial Consultant.)

Who can take advantage of a Living Trust?

Anybody with an estate above$100,000 or who owns any real estate valued above $20,000. Estates below $100,000 and real estate valued below $20,000 can be transferred to the Beneficiaries, without probate, by using the proper forms. Estates above $100,000 and not protected through a Living Trust, MUST go through probate whether you have a Will or not. Without a Will it takes considerably longer and is much more expensive. Probate of a Will for an ordinary, uncontested estate, usually takes 18 to 24 months and the cost is easily 10% - 12% of the Gross Estate Value.

Does a Living Trust offer me any protection while I'm still alive?

For a Single Person - Yes. In the event of ant physical or mental disability while you are still alive, the appointed successor trustee is authorized by you to handle the financial affairs of the Trust assets.

Peace of Mind.

For a Married Couple - Yes. In the event of any physical or mental disability of one of the Trustors, the other Trustor is authorized to handle the financial affairs of the Trust assets. In the event of any physical or mental disability of both Trustors, the appointed Successor Trustees authorized to handle the financial affairs of the Trust assets. In the event of the death of one of the Trustors, the surviving Trustor will benefit greatly from the elimination of Capital Gains Taxes on any real estate owned by the Trust, in the event of a sale.

Peace of Mind.

H ow long does it take to establish my Living Trust?

We can complete the whole process and prepare all the legal documents within a few weeks. The Harvest Living Trust is prepared according to the latest Internal Revenue Service Codes by a qualified attorney and accountant. It is very easy to establish your Living Trust. A one hour conference in the privacy of your own home will get us started. If you prefer, we could complete the process via Fax or Internet "E-Mail". After the Trust has been written, we bring it to you and spend whatever time is necessary to explain it to you. In the case of Fax or "E-Mail" processing, the completed document will be express mailed to you with simple and complete instructions to have the document signed in the presence of a notary public for your local area. We can even assist you in the transferring of your assets into the Trust. We Do Not require any detailed financial disclosure from you, and it is not necessary to get involved in your private finances.

What does a Living Trust package consist of?

• Revocable Living Trust Document
• Pour Over Will
• Living Will with Durable Power of Attorney for Health Care
• Conservatorship Appointments
• Guardianship Appointments
• Durable Power of Attorney for Asset Management
• Sample Transfer Documents
• Funding Instructions and Assistance
• ....And Much More

What Should I Do?

If you are in southern California, pick up the telephone, send a Fax or Send an "E-Mail" to find out how a Living Trust can benefit YOU specifically.

Give some thought to who your successor Trustees should be after you are gone or are unable to act in your own behalf. We recommend you select two Trustees. The Trustee can be your children or a friend or anybody you trust and have confidence into eventually settle your estate. (Trustees should be at least 21 years of age to act in your behalf and to be acceptable in all of the United States.)

Select a Conservator of your person and a Guardian for your minor children. They can be the same person as the Trustee, if you prefer.

Pricing

When considering a Living Trust, the elements of the Trust are important to the overall effectiveness and validity. All Trusts are not the same! There are documents that are called "Living Trusts", however, the preparer of the Trust is sometimes more concerned with their "method", than the needs of the individual or the legal legitimacy of the Trust documents.

Another very important aspect of your Trust, should be its legality and acceptance by the proper authorities (IRS, State Tax Board and Interested Attorneys representing the beneficiaries or potential challengers). After nearly 20 years in business, all of the Trusts that we provide, have withstood the tests of all the above, and been accepted completely.

W hen reviewing our pricing section, keep in mind that you can be confident that the Trust we prepare for you will prevail when the time is right; when your heirs and beneficiaries are counting on it to fulfill your wishes, as you desire.

Click here for California Pricing,