It is common for a person (hereinafter the “trustor”) to create a living trust to avoid the expense and time of probate.
The creation of the trust is not the sole step in avoiding the probate process – the trust must be “funded”.
“Funding” a trust is the process of the trustor conveying the title of his or her property into the name of the trust. For real property, this process requires the preparation, execution, and recordation of a deed. Some initially fear that their mortgaged real property cannot be conveyed to their trusts. The fear is based upon the “due-on-sale” clause contained in the mortgage agreement. Fortunately, federal law has brought clarity to the issue of mortgaged property and trusts. What is known as the Garn St. Germain Act prevents a lender from exercising its “due-on-sale” clause option to take action for “a transfer to an inter-vivos [living] trust in which the borrower is and remains a beneficiary”. There are a few limitations with regard to what type of dwelling would fall under this exemption, but for the person who has a single family residence or condominium such relief is applicable.
If you should have any questions regarding real property and trusts or want to discuss further, feel free to contact the law firm of Jeffrey Burr for assistance.
Per recent changes in the law, Executors may have additional reporting obligations. Executors may now be required to report the basis of estate assets to the IRS and the beneficiaries of the estate by filing the Form 8971. Executors will need to complete and file the Form 8971 for estates that are required to file an estate tax return after July 31, 2015. Estate tax returns are generally only required when the estate value is more than $5,430,000 in 2015 and $5,450,000 in 2016. (Currently it is unclear whether the Form 8971 will be required for estates filing an estate tax return only to elect “portability”, although it does not appear the Form 8971 will be required in those cases.)
Although the IRS has delayed the first deadline for filing the Form 8971, the current deadline is March 31, 2016.
For additional information or if you need assistance in preparing the Form 8971, feel free to contact the attorneys at JEFFREY BURR.
-Attorney Michael D. Lum
Nearly 75% of survey respondents reported they did not have an advance medical directive in a 2014 study conducted by the American Journal of Preventive Medicine. An advance medical directive may be a general power of attorney for healthcare matters, a directive to physicians, a living will, or any combination of those – in essence any document or documents which appoint an agent to make healthcare related decisions for you if you are not able to make them for yourself and gives instruction to that agent about what healthcare decisions you would make for yourself if you were able.
The main reason why the respondents without these documents stated they did not have advance medical directives in place was a “lack of awareness.” So, what were they not aware of?
In Nevada, the Power of Attorney for Healthcare allows you to do the following:
The Directive to Physicians is a statement of your desires regarding end of life decisions directed to your physician should the time come where your agent must make an end of life decision on your behalf.
Having these documents in place can help avoid situations like Aden Hailu’s, discussed in a previous blog by Michael D. Lum, Esq., where families and physicians are gridlocked and unable to make end of life decisions for a loved one.
Contact an attorney at the law offices of JEFFREY BURR to discuss any questions you may have about advance health care directives.
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