Archive for the ‘Holding property in a trust’ Category

Prince’s Death Teaches an Important Lesson on Estate Planning

Friday, May 6th, 2016

The passing of Prince really effected me – it’s crazy but I really fell into a mild depression. Prince’s music plays on the soundtrack of my life, my most poignant self-discovery years of high school and college. He was a musical genius and stood up for ownership rights to his music, which I admired immensely. He also reminded me much of my birth father – a very talented musician who learned to play the violin as a small child and ended up at 17 (same age Prince was noticed by the industry) getting into a popular band and touring the country as it’s lead bass player (he was also a talented vocalist and song writer as well, and recorded many songs). th

Prince was a prodigy, a mover and a wizard of words and sounds. There will never be anyone like him in the music industry. He was also a big philanthropist, helping others all over the world. But the saddest note in all this is that he left this world without an estate plan. As an attorney I am beyond upset for him and his legacy. As a fan I am devastated as well, and can only hope that all the beneficial causes that he contributed to, as well as the vault of thousands of songs that were never released, are handled properly. I hope that his estate, Paisley Park, does get turned into a memorial museum for fans to pay their respects.

I tell all my real estate clients when they purchase a home that they need to consider creating a trust and an estate plan in general. It is easy as a young home buyer to not consider doing so, but life has no set expiration date, and in order to protect those you care about and not tie up your property in probate, as well as for tax purposes, this is a no-brainer.

If you are thinking of creating an estate plan (and if you don’t have one you definitely should be thinking about it, especially if you own real estate and especially if you are a parent, have a spouse, etc.), stop thinking and get moving. You will need to collect lots of information to provide your attorney, so find a good estate planning lawyer and get started.

Here are the documents you should incorporate into your estate plan:

1. Trust: You should hold real estate in a trust – it enables you to appoint executors of your estate so that your wishes are adhered to properly when you die. It also avoids the costs of an estate sale and court time to determine who inherits the property. Just as importantly, if you have children you will set up plans for them should anything happen to you and your significant other – no parent should be without a trust. You can set up a revocable (changeable) trust, or an irrevocable (non-changeable) one depending on circumstances.

2. Will. This will specify your wishes regarding a host of issues like who will inherit personal items. You can always make changes to these documents – my husband and I have done so over the years due to the passing and health of family members.

3. Power of attorney. This allows you to name who will pay your bills, sign tax returns and sell any needed assets. If you do not do this the state will appoint a stranger to oversee such issues (like in Prince’s case), and your wishes may not be followed.

4. Health care directives and DNR. This will allow you to appoint the person who will make medical decisions for you if you are unable to do so yourself, and  you can include a DNR (do not resuscitate) to specify whether to keep you on life support if you cannot breathe on your own. It is hard to think about but is necessary, and will save your loved ones from having to make a decision if they don’t know what your wishes would have been.

Depending on your net worth and the particulars of your assets, you can have estate planning documents drafted that range from the simple to the very convoluted. But no matter what you need, my advice to you as a lawyer and real estate broker, is to create a trust. Unlike Prince, you can make sure your legacy is left to your heirs or whatever organizations you choose. If you need a referral to an estate planning attorney in the San Diego county area please shoot me an email, text or call me and I will be happy to provide some names.

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