Video instructions and help with filling out and completing When Form 2220 Estates

Instructions and Help about When Form 2220 Estates

So this video addresses a significant estate planning problem in America and what to do about it so if you've set up a revocable living trust in an attempt to enable your family to avoid probate when you die then you need to watch this video from start to finish but before I get into all the details let me first congratulate you because if you've set up your living trusts you've taken some steps to enable your family to avoid all those difficulties that people complain about probate takes too long gotta hire lawyers it's expensive I've got a deal with courts and pleadings and frozen accounts and can't sell the real estate so congratulations for taking those steps to enable your family to avoid that however there's a problem out there and it's a beast and the big problem is that people are setting up living trusts and they're not funding or they're not retitling assets into the name of their trust assets aren't in their trust when they die so those assets are frozen and there's no way around the probate because there are assets still in your name when you pass away now when a trust is fully funded it's a beautiful thing so let me give an example mom passes away her trust is fully funded she has her house she has her investment she has her CDs they're all titled in the name of the trust she has three kids she arranged her trust so that her oldest son would be the successor trustee when mom died her three children would be equal beneficiaries mom dies everybody knows the house is gonna get sold so because mom had set things up the right way the day after mom dies son plopsa for sale sign in the yard he finds a buyer he sells the house he disperses those proceeds to the three children he goes to the investment company they review a copy of the trust they see son is the successor trustee they don't freeze the account they allow them to desert to transfer the investment account assets to the three children mom go our son goes to the bank they review the trust instrument son is the successor trustee he can disperse those CD funds to the three beneficiaries don't eat you know don't even have to go to the attorney's office in fact many trusts get settled without any attorney involvement so beautiful thing when it works right now but you've got to make sure you get it set up right because not only if the is is if the Trust is not fully funded you know your family and your survivors are gonna have to deal with a bunch of stuff when you pass away even if they don't have to go through a probate you know they're gonna be dealing with funeral homes they're gonna be dealing with the state or with death certificates they're gonna be dealing with the Social Security office perhaps they're dealing with the VA perhaps they're dealing with your financial accounts where you have IRAs perhaps they're dealing with life insurance companies if you had life insurance or annuities the bills keep coming in so they're they're dealing with all of that stuff and then when you add on top of all of those other things that they have to deal with at a time that is you know they're grieving and they're kind of stressing when you add on top of all of that the fact that they've got a they've got a higher lawyers and and and go through a court process and incur the delay and expense and all that goes with that when you add that when it was unexpected because you had a living trust then sometimes that's just the straw that breaks the camel's back surviving family members fall apart there's frustration there's anger there sometimes family relationships that fall apart and it can be a real mess don't do that to your family now there's a lot of reasons why trusts don't get funded none of them are valid but life is life and and here's a few of the reasons you know why trust don't get funded there's a bunch of them sometimes people they don't tell their attorney about all of the real estate that they have they usually get the home right maybe if they have a vacation home but they forget about the little tract that they've had forever they pass away the little tract is still in their name got to go through the whole probate process to get that transferred into their trust maybe they opened an investment account after they formed their trust and they just forgot to open it in the name of their trust and so they opened their investment account in their name and so when they died investment account is frozen got to go through probate maybe their sold their house that was in their trust and when they purchased their new home they didn't even think they just purchased it in their name they pass away the real estate's frozen got to go through probate sometimes people say well you know we thought or we designated beneficiaries on all of our investment accounts when in reality false assumption because perhaps they had three investment accounts perhaps dad had his traditional IRA he had his Roth IRA and he had another individual investment account and he goes to the investment company and he designates beneficiaries he sign in paperwork after paperwork naming his beneficiaries thinking that he was designated benefiting beneficiaries on all of his accounts but in reality only designating beneficiaries on his to IRAs he wasn't permitted based on that state law to designate a beneficiary on the individual investment account he dies individual investment account is frozen nobody gets access to it got to go through probate or perhaps he you know