Who Do You Trust?

By Mike Parnos

Johnny Carson got his start in show business as the MC of TV's "Who Do You Trust?" It was Johnny Carson we learned to trust. We let him into our bedrooms. We could trust him to make us laugh, night after night, and year after year. He was more responsible for smaller families than the ZPG movement.

When it comes to your money, it's a different matter. While you're alive, you are pretty much in control of your money. When you're dead, it's a little tougher - but not impossible. A "Revocable Living Trust" is a relatively simple document that securely protects your wishes, preserves your assets, keeps your estate private, and avoids the costs of probate and attorneys.

A Living Trust is the creation of a family company. You run it until you wake up on the wrong side of the grass. The word "Revocable" simply means that, while you can still fog up a mirror, you can make changes to the trust.

Our state and federal governments are digging deeper and deeper in our pockets. We have to act before they latch onto something that's attached. It's our right (we still have a few left) and obligation to keep what we worked for -- in life and in death. If you don't prepare for death, when the time comes, you'll have a mess on your hands -- well, maybe not your hands.

Your grown children, who were almost as sad as when "Hee-Haw" was cancelled, will be fighting over your cars, your silverware and the crystal butter dish. Your son-in-law, who looks like the kid in "Deliverance," will be salivating at the thought of buying that new banjo and ATV he's always wanted. Your loving wife hopes there's enough left to pay for that romantic getaway with the pool boy. Is that what you want?

JOINT TENANCY
Some folks think that "Joint Tenancy" is an alternative. Not so. It's a band-aid - a way of postponing the problem. In joint tenancy, the survivor takes ownership of the asset, but that's only good until the grim reaper turns up. Then, it's the same set of problems.

Passing on assets via joint tenancy can result in unintentionally disinheriting a child. It may expose your assets to your kid's creditors. There may be gift tax issues. We live in a time when two or three marriages are not uncommon -- causing other problems. Will your current wife willingly hand over a chunk of your assets to kids from a previous marriage? Don't count on it.

A WILL - OR A WILL NOT
Here are a few of the drawbacks. It's a public document, doesn't avoid probate and can take years to complete. Plus, it still requires an attorney.

SO, WHO DO YOU TRUST?
You'll have some tough decisions to make. The $64,000 question is: Who will you trust to be the executor of the trust once you head to the happy hunting grounds? The executor is responsible to follow your expressed wishes. It's an important decision. Who will it be?
Your wife? Your children? Your masseuse? Your attorney?

YOUR WIFE: She kept you warm, fed you, cleaned up after you, pretended to believe all your BS all these years (sounds like mom). Is she dollar wise? Or, is she a QVC addict? Emotionally, she may be a good choice, but practically, she could be a disaster.

YOUR CHILDREN: They are the fruit of your loins. You raised them, clothed them, schooled them. Hopefully, they remember. If they have more common sense than tattoos and body-piercings, then one of them may be a candidate.

YOUR MASSEUSE: She already got her hands on you - literally, but do you want her to get her hands on your estate, too? Perhaps a happy ending for her this time.

YOUR ATTORNEY: You must be kidding.

FUNDING THE TRUST
There's more to the process than just creating the trust. You have to fund it. That means you'll have to have the name changed on all your assets to the name of the trust. These assets include savings accounts, CDs, stock brokerage accounts, and real estate (including properties in other states). The deed to your house etc. will be "quit claimed" to the trust.

Creating a Revocable Living Trust isn't rocket science. It's wise to use an estate-planning attorney. I had one done last year and it cost me about $1,500. That $1,500 will ultimately save me tens of thousands of dollars. And me? I'm a bit of a control freak. Like Geppetto, I'll be pulling a few strings from above.

There are dozens of books on Revocable Living Trusts (estate planning) as well as related software programs in which you simply fill in the blanks to create the document. Suze Orman has a will & trust kit that's worth a look at www.SuzeOrman.com.

Trusts date back over 1,000 years and were primarily used by the wealthy. Now, they're a good idea for everyone. Your family will be the beneficiaries. As I told my date at the Senior Prom, "Trust me." It's a great idea.