January 01, 2008
Posted by debwing
I am 52, my name is on all documents, house, car, loans etc. along with my husbands. I am the beneficiary on all insurance policies. Do I still need a revokeable trust and do I have to do probate? Also when I pay off all debt I will only have a small pension $491.00 monthly and about $9,000.00 left in cash. Should I pay off my house, I owe $64,000.00 at a fixed rate of 5%, or is there a way to invest the money at more interest and should I keep paying house payments? It is very hard here to get a job, and I don't want to run out of cash. Also is Johns written will legal? Sincerely, Debbie
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January 02, 2008
Posted by TonyLiu
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A revocable trust (RLT) would be something your husband sets up. RLT can be used as a substitute for a will by providing for the distribution of assets upon the grantor's death. This allows for a faster and less costly method of asset transfer than a will, which requires court supervision or probate.
Establishing an RLT can be especially useful in avoiding expensive multiple probate proceedings when you own real estate or other property in several states. Assets named in trust avoid the costly courts and typically take precedence over the property designated in your will. (For more on this, see Skipping-Out On Probate Costs.) http://www.investopedia.com/articles/04/121304.asp
Having your husband set up a RLT isn't a bad idea, and would likely avoid Probate, for more info look on investopedia: http://www.investopedia.com/articles/pf/06/revocablelivingtrust.asp
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January 02, 2008
Posted by TonyLiu
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If John's written Legal will was prepared with the aid of an attorney you should be fine. Legally, you don't need an attorney, but to be smart about such an incredibly complex issue you'll want to involve an attorney. It is certainly worth the costs involved.
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January 02, 2008
Posted by TonyLiu
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Regarding paying off your house, if you are only paying 5% and the rate is fixed, you can most likely find an investment vehicle with moderate risk that will pay higher than 5%. Do you have a financial advisor or broker to work with? If so let them know your risk tolerance, which is moderate to low, and find a mutual fund.
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