Living Trusts: Do They Protect Your Assets From Creditors?
February 23, 2010
A surprising number of readers want to know “Can a living trust protect my family’s assets from creditors and lawsuits?”
I think there are some promoters out there that use this as a pitch to get people to set up a living trust using their services:
“Transfer your assets to a living trust and hide them from your creditors,” are the claims.
Sorry, that’s not the law.
Let’s have a quick review of a revocable living trust. Basically a trust is “a legal arrangement where property is held for the benefit of someone.” In other words, you “entrust” title to your assets to “someone” who is instructed to use and manage those assets per the terms of the trust document.
A trust is revocable if it contains language that allows you to change your mind and terminate or modify it. In California, the Probate Code specifically states that all trusts are revocable, unless specifically stated otherwise.
A trust is called a “living” trust because it is set up by you while you are living. If you set up a trust through your will, it’s called a “testamentary” trust since it is created through your last will and testament.
Trustees: Who Can You Trust?
January 12, 2010
Early in my legal career I represented two young women in their early 20s.
Their mother had been killed in a car accident when they were infants. An out of court settlement had been reached and a lump sum of cash had been awarded to each of them.
Since they were “minors” (too young to have legal capacity to act for themselves) the money was given to their father “in trust” to be held until they reached the age of 18.
The reason they had been referred to me was because they had both reached 18 and had asked their father for their money. He had ignored their requests.
I was hired to get their money.
Easier said then done. Their father hired a lawyer of questionable repute who threw up every roadblock in the book, hoping to make us go away.
We eventually learned why. Their money was gone.
Their father had spent the girls’ money? some on personal living expenses, some on vacations. He even had given some of the money to a friend for a business that had failed.
Their father was broke. There was no bond (insurance on a trustee’s actions) and no money.
Trustee Fees: How Much is Enough and How Much is Too Much?
November 30, 2009
I am often amused by the ads and offers I see concerning living trusts.
Almost always, one of the big sales pitches is how a living trust will save th*usands of doll*rs in “nasty” probate fees.
This leads the consumer to believe that you pay for probate, but living trusts are “fr*e.” (that is, after you’ve paid the promoter to set one up for you).
Not so.
Here’s an email I received from one of my subscribers (she has given me permission to discuss her question in this article):
Hi Phil, My mom passed away recently and my sister is 1st trustee. She claims she gets 10% of my mom’s estate as 1st trustee. Is this true? What is the normal fee for 1st trustee?
Great question. Often one of the biggest, if not the biggest, areas of dispute between children or heirs after a death occurs.
What is a trustee fee? How is it calculated? Are there other fees?
If you have a trust and don’t know the answer to these questions, I think the proper thought is “Uh-ohh!”
OK, let’s have a quick review of trustee fees.
Surefire Ways to Attain Moneymaking Success
October 21, 2009
You have probably heard other people say that “Money isn’t everything” or “Money can’t buy happiness.” They may be right in some aspects; but it’s not just about the money.
It’s about having an ideal lifestyle - being able to have control over your time and schedule, having no one ordering you around, not having to look at the price tags everytime you go out shopping, and just enjoying the freedom that you truly deserve.
But why do many people fail to achieve financial freedom? Through experience, I have observed that they have limited belief.
That’s the problem with most people. They have set up a boundary in their minds. This barrier stops any possibility of surpassing the current limits of their belief.
For example, many people would think that their boring day job is all that they’re good enough for. They do not like to think outside the box. They do not grab opportunities that are theirs for the taking. Fears and doubts have been causing them to miss these golden chances of a lifetime.
There are plenty of opportunities out there. They may enroll in night classes, do some research on how to make more money, or start an internet business.
Financial Freedom, Is It Only A Dream or Just Steps Away?
September 6, 2009
Almost all of us go to work everyday and do the same routine over and over again. We work so hard until we caught up in the routines for years. With the salary that we earn every day, we try to pay all of our bills. We always expect to get a higher salary, getting promotion or our business running better so we can earn more money. But we do not realize that when we get more income, we also have spent more money on our needs. After we work for two, five, or even ten years we just realize that we have been in the rat race of our financial troubles.
So, to be financially free is only a dream for us, we don’t think that is possible. We already set our mind set that we will retire after 40 years of working and then we start to enjoy our life after that. I don’t want to do that.
What if you can get the financial freedom faster than 40 years? What if I can show you how to get to financial freedom in 5 years? Wouldn’t it be interesting for you?
There are couples steps to achieve financial freedom.
Your Own Products Can Make You Rich
July 28, 2009
Although there are advantages to selling other people`s products and services, there are also drawbacks. For example, the lack of exclusive rights to your own proprietary product can mean that you are just one of thousands selling the same thing. Excessive competition can cause you to drop your prices and to lose sales, thus affecting your profits and cashflow that are so essential to your business survival.
For this reason, you may decide to develop your own proprietary products and services, either exclusively, or to complement your line of other people`s products.
After creating your own proprietary product, you could spend millions in manufacturing and marketing costs. You could go bankrupt before you even had your first sale.
Here, then, are just a few, low-cost ways to profit from selling your own proprietary products and services.
1. Licensing
Instead of trying to finance the manufacturing and marketing of your invention, why not license it to a company with the expertise and capability required? You will then receive royalties in return for your idea.
To learn more about licensing, visit http://yenommarketinginc.com/licensing.html
2. Exporting
Profit from Your Own Information Empire!
June 18, 2009
Would you like to profit from your own information empire? Here are a few ways of doing so.
1. Book Distributorships
For free or nominal consideration, you can obtain book dealerships which allow you to sell books and other information products. For example, you can buy books at a cost of fifty percent of the selling price. In many cases, you don`t even have to stock the product; your supplier will drop ship it for you.
For more information about drop shipping, visit http://www.yenommarketinginc.com/dropship.html
2. Affiliate Programs
Many excellent information products are available from companies who offer affiliate programs. Thus, by simply referring your customers to them, you can earn generous commissions.
For more information about affiliate programs, visit http://www.yenommarketinginc.com/affiliate.html
3. Reprint Rights
You can receive reprint rights to some excellent products for prices ranging from free to very expensive. These products can then be resold online or offline as an additional profit centre.
Some of these information products with resale rights can be branded with affiliate program links so that you can earn additional back-end commission income.
For more information about reprint rights, visit http://www.yenommarketinginc.com/instantpub.html
4. Self-Publishing
8 Tips for Keeping More of Your Hard Earned Money
May 7, 2009
Masters degree not required…just a little common sense, a $5.00 calculator and a realistic plan is all you’ll need.
"There’s got to be a better way" resonates with many of us, when contemplating how frustrated we’ve become with our investment decisions. Too many Canadians are spending far too much on credit card debt, accept inflated mortgage rates from financial institutions they’ve been loyal to for years, and just don’t seem to have a realistic financial strategy in place.
With the myriad of savings, mortgage and investment options available today, rethinking your financial plan to make more efficient use of your money can be a daunting task. As a result sometimes the fear of making a costly mistake can lead to inaction, but inaction or procrastination will almost always cost you money in the end. So what is the correct course of action? The following column contains 8 valuable tips, which will provide a framework to help you earn more and save more of your hard earned money.
Still Using Federal Reserve Notes?(How to Beat Inflation)
March 25, 2009
“My people are destroyed for lack of knowledge.”
Hosea 4:6
This short article will address the topic of
inflation, its causes, the effects thereof, and
how to safeguard against it.
Do not fall victim to inflation, i.e., the
government manipulation of your money. Let me
explain.
I. What Causes Inflation
Have you ever heard of the Federal Reserve? Well
then you know what causes inflation. The “Fed” is
the engine of inflation, by self-admission. But
how can that be?, you ask. The “Fed” is a branch
of the federal government, no?
It is not. It is neither federal, nor are there
any reserves - anywhere - to speak of. Time was,
when the American dollar was indeed as good as
gold, for it was actually backed by gold. These
days, the dollar is no more than a three cent
piece of paper(the three cents includes the price
of ink), worth anything only because our
government says it is. This is to say, that the
dollar has value due only to government’s faith in
the people’s ignorance, or, more accurately, the
The Hawk and the Mouse - Saving for Retirement
February 10, 2009
There once was a hawk, ferocious and swift. He was young and agile with many years of life to hunt the open ranch lands. In a nearby field, a mouse scurried about the ground. The hawk saw the hurried motion and swept speedily toward the rodent.
Just as the hawk’s shadow engulfed the smaller rodent, the mouse fell to its back and begged, “Please, Mr. Hawk, spare me my life!” This surprised the hunter and he landed beside the mouse.
“Why should I spare your life? I am hungry today.”
“It’s always about today, isn’t it?” answered the mouse. “Do you ever think about tomorrow?”
“Tomorrow? Well, that’s just another day to flap my wings. I will eat then, too.”
The mouse scratched his chin and replied, “But one day you will be old and gray. You will have chiseled claws. You should prepare for the future now or starve later.”
“I do, I do. I am building a grand nest as we speak. You see, I fly low to the highway’s hot pavement in search of lost dollar bills everyday. I find a dollar a day and add it to my nest. I am constantly constructing my nest egg.”
