Q: Our house is owned by our Revocable Trust. We would like to sell the house. How do we remove the house from the Trust for the sale?
A: As the Grantors of your Trust, you can sell property in your Revocable Trust the same way you would sell a property titled in your own names. The only difference is that you use a different type of deed called a Trustees’ Deed. Trustees’ Deeds typically are prepared by your attorney. You should provide a copy of your existing deed on the property to your attorney, showing when the property was deeded to the Trust, and verifying the legal description and recording information. If you are providing title insurance as part of the sale, you will need to purchase a title commitment from your title company. This title commitment will stipulate the information that in required to be included on the deed. Your attorney will use this information to prepare the Trustees’ Deed and Affidavit or a Certification of Trust. An Affidavit/Certification of Trust in Kansas should state the name(s) of the Trustee(s) of the Trust, that the Trustee(s) are legally authorized to sell the property, and that the Trust is in good standing, among other things. The Affidavit may be combined with the Trustees’ Deed, while the Certification of Trust typically is a separate document. The Trustee(s) must sign these documents before a notary public. The documents
We often talk about the proverbial “crystal ball” in our office. If only we knew when our death will occur, we could wait until the last minute to get our affairs in order. Unfortunately (or maybe fortunately), very few of us receive notice that our death is imminent while we are healthy enough to take care of these things. Perhaps we receive a terminal diagnosis, but we believe we’ll “have more time” to take care of the details involved in our estate. Or, we pass away due to an unforeseen accident. The reality is we “think” about getting our estate in order but, time seems to slip away. We encourage everyone to assemble these important documents during their younger years, so when a health crisis or death occurs, there is one less stressor on the family.
Here are some helpful tips we gathered from the National Institute on Aging, as well as some of our own, that may assist you in getting your affairs in order:
1. Gather important papers and keep them in one place. Create a file and place everything in a desk or dresser drawer. Notify a trusted family member or friend where these papers are located. You also can notify your lawyer as to their location. You may wish to list the information and location of papers in a notebook. If your original papers are in a bank safe deposit box, keep copies in your home file. Check each year to see if there is anything new to add.
2. Give permission in advance for your doctor or lawyer to talk with your caregiver as needed. There may be questions about your care, a bill, or a health insurance claim. Without your consent, your caregiver may not be able to get needed information. You can give your approval in advance to Medicare, Medicaid, or your doctor. A HIPAA authorization form and/or Health Care Power of Attorney may be used to accomplish these tasks.
Q: Why do I need a Durable Power of Attorney if I own everything jointly with my spouse?
A: While you generally would have access to jointly titled bank accounts and brokerage accounts, owning everything jointly with your spouse does not give you the power to manage every asset if your spouse is incapacitated. Without a Durable Power of Attorney, you could not sell, rent or lease jointly owned property. Without a Durable Power of Attorney naming you as your spouse’s agent, you could not manage or draw upon your spouse’s IRA, even if you were the beneficiary, until your spouse dies. You cannot sign tax returns on behalf of your spouse or access information regarding his or her social security or other government related accounts without a valid Durable Power of Attorney.
While joint ownership can be an economical estate plan, it is not fool-proof. Everyone over the age of 18 should designate one or more persons to act on their behalf should they become incapacitated, with the use of a Durable Power of Attorney. Your Durable Power of Attorney can be drafted to provide your agent(s) with all the powers allowed by the State, or you can limit their power to very specific matters and time periods. The agent(s) can be given immediate authority to begin acting on your behalf, even if you are perfectly healthy, or the Durable Power of Attorney can be effective only upon your incapacity.
Small Business Week is celebrated May 5-11 in recognition of the entrepreneurs who saw a need in their community and stepped out in faith by opening a business to provide a solution to that need. These business owners are key to our economy and without their ingenuity, hard work and dedication, many of our communities would be suffering.
Small business owners hold a special place in our hearts at Davis & McCann. In fact, we’ve helped over 100 businesses get a start in Western Kansas in the past five years alone. There’s something inspiring about listening to someone share their dreams and visions to make their community better. We want to see people succeed and do well in life. Being able to play a small role in someone’s success by helping them get started with a new business venture allows us to end our day feeling content, knowing we’ve helped make our community just a little better than it was yesterday.
Fledgling businesses often find themselves full of doubt when times get tough. With so much business being lost to internet sales, local businesses often fail to see the value they are providing to community members. What are some ways you can encourage your local small businesses? Here are just a few ideas that can go a long way to keeping that entrepreneur flourishing in your local community:
1. Like, share and comment on any social media the business may post. Sharing and commenting on a post will help the information stay visible on social media to a broader audience, and potentially draw the attention of prospective new customers.
2. Leave a positive review for the business on Google, Yelp, or their social media or website. Positive online reviews help attract new customers.
2. Encourage friends and family members to check out the business. Word of mouth from trusted sources carries a lot of credibility.
3. Lend moral support. Stop by and bring a cup of coffee or a snack and let your favorite business owner know you appreciate the service they are providing in your area. Encouraging words go a long way when days are difficult.
4. Don’t expect free goods or services. Businesses aren’t open just for laughs. It is extremely common for
Elder law may not be on your radar yet. However, if you live long enough, it will be. May is designated as National Elder Law Month and is sponsored by The National Academy of Elder Law Attorneys (NAELA) specifically to draw attention to legal issues related to seniors and their families. As you or your aging parents encounter an increased need for legal and financial assistance, you will find elder law attorneys can help with a wide range of legal topics, including healthcare directives, financial powers of attorney, long-term care planning, Medicaid planning, guardianships, special needs planning, and similar matters.
You or your parents may not feel the urgency for legal guidance in any of these areas today, but with the passing of time, it will become more relevant. There is significant risk involved by waiting to develop a long-term care plan. If you wait until the point when you realize an elderly parent can no longer manage his or her money, or their health has declined so much that immediate intervention is necessary, then the pressure is suddenly on to act quickly to prevent significant losses, which often results in higher costs and more difficulty in the planning process. Rarely are optimal decisions made in high-pressure situations. Advanced planning provides you the peace of mind that in the event of something unforeseen, you have a plan in place that will immediately meet the needs of the senior. It also is especially important for adult children who live at a distance from their elderly parent and cannot respond immediately in a crisis.
What are the key questions you should ask yourself or your aging parent when considering estate planning and long-term care planning?
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