Wills
Self Proving Will
A self proving will has been signed twice, witnessed twice and notarized. It
has an additional sheet compared to a non self proving will. A non self
proved will has to have a live attorney or witness to prove that it was
signed.
Wills, Probate and Trusts
You will find that you can pay as low as $50 for a simple will from many attorneys such as Tom Michaels of Pinellas County, FL.
The reason that lawyers promote wills and will do them cheap is because they get to do the probate
(and in the process of doing so earn 3% of gross amount of the estate)! And that is also why many attorneys don't like trusts because they allow the deceased and family to avoid
probate.
A will goes through probate (proving).
If will is missing it is assumed that the deceased got rid of it and didn't
want it to prevail.
If you make a change on a will by initializing it, it is invalidated. You will need a
codicil.
When a trust is set up, assignment of personal property is done to fund the
trust, thus probate is avoided.
Trustee is the person who funds the trust. There are many obligations on the
trustee to the beneficiaries.
If no trust, then your assets are exposed to creditors for two years after
your death.
Income from property in the trust goes to the trustee.
Post death trust administration is becoming more like probate
administration, more complicated.
Upon your death or incompetence, the successor trustee takes over.
Let people know what happens to your body. Often there is dispute amongst
the children as to what is to happen to parents body. Cremation v funeral,
faith etc.
Florida Will Requirements
In FL, executor must be state resident or related by blood if out of state.
Comity means out of state wills are recognized. But, it is much easier to
just get a new FL will.
Power of attorney ends with death of the person who appoints the attorney.
A Do Not Resuscitate must be on Golden Rod Yellow paper.
First paid is court costs, then attorney, then personal representative, then
creditors.
Out of state property requires ancillary administration which is done
according to the local law.
Nolo's Simple Will Book
Will terminology: Bequests are personal property, devises are real property.
- A holographic will is handwritten.
- A statutory will is valid in some states, such as CA, and is fill in the blanks, check the boxes will. It cannot be customized.
- Video wills are invalid.
- Oral wills are rarely valid.
- Living wills are so called as they are executed while you are still living.
- An ethical will is like a self eulogy, describing your experiences, values and beliefs.
Explanatory letters are sometimes useful for sentiments and explanations. You can leave instructions for pet care in these letters.
An attorney will be needed to set up a trust for a pet.
Upon death, executor will hire a probate attorney (only in CA can an executor do probate without a lawyer).
Probate court gives executor authority to conduct the estate's business. Probate takes 4-12 months usually.
This book has a good section on community property vs Common Law
Spouses can make post nuptial agreements transferring property between them any way that they want.
Community property states say that property owned by spouse before marriage stays that spouse's.
Foreign property is subject to the jurisdiction that it is in, so the Nolo book's forms aren't appropriate. Use an attorney familiar with that country's laws.
Make an inventory of the property that you own including frequent flyer miles.
Alternate beneficiaries are named if the primary beneficiary doesn't get it, e.g. they die before you do.
Residuary beneficiaries get whatever is left.
Usually the executor just signs papers, locate beneficiaries, collect mail, pay outstanding debts, cancel credit cards etc., and hire the attorney, who does all the complicated stuff. The executor is entitled to a fee.
An notary signed affidavit is attached to the will to make it self-proving (use Nolo form SP_AFF2)
Codicils must be treated with the same formality as the will itself.
Probate fees are usually based on the size of the estate. Trusts allow you to bypass probate.
Gifts prior to death are a good way to avoid probate and estate taxes.
Curtis Brooks
He recommends highly the book, Instant Rapport by Michael Brooks
Heather Dueease has also worked as a presenter for Probates Daily. Heather Sykes was the trainer that she was pitching for.
Someone petitions for something to go into probate.
Probate
- validates a will
- Appoints an executor or administrator
- Pays debts
- distributes remainder
usu 6-9 mo
How do you market to probates, e.g. to the executor or attorney
70% of probates go through foreclosure
70% of personal property auctioned comes from probate
Earn income while providing immediate cash to heirs, attorney fees, travel
costs, HOA, maintenance, mortgage payments, taxes. You could get it "subject
to" at the end.
Property cannot be sold on MLS while it is in probate. You can buy it, but
it can't be "sold" unless you are dealing directly with the executor etc.
Formal probate is greater than 75K tax assessment. Summary probate is < 75K.
Banks have a loss mitigation department.
George Miller
Inspired by Ed Beckley back in 1984
He has been doing Probates for 12 years.
He doesn't like competition, if other people start doing what he is doing,
then he stop doing it. That is why he is currently focused on Probates.
He almost died in a car accident recently.
The PR will have to outlay money for the funeral and other bills from their
own funds. As Probate liquidators (a term trademarked by George), we buy all
or part of the estate to help the estate pay the creditors and expedite the
probate process.
Average probate lasts about 3y nationally, in FL 18mo.
Motivations:
-
heirs want money
- PR can't subsidize estate
- probate fees are consuming the estate
3 trillion dollars are currently locked up in probate (6M probate cases)
Probate is the ultimate short sale opportunity:
-
no possibility of repayment of note
- no recourse on credit
- no deficit judgment
- future risk on title or claims
- bad pr
Baby boomers are already starting to pass away (first year of boom was 1946).
There is a need for trained probate professionals
George wants to do JV deals.
23M small businesses in the US according to the SBA. 70% will go out of
business upon death of owner or partner.
George said that he could show us how to get free houses:
Someone dies with
- 20K credit card
- 5K car loan
- 80K business loan
You can buy
- defaulted credit card debt for 2% of value = $400
- car loan 5% as they can't reposess easily with the probate process = $250
- business loan 2% = $1600
When the house comes thru you buy it, and the court gives you the money you
paid for it because you own the debt.
