Your home really is your ‘castle’ as it’s one of your most important investments. Your home can be your biggest investment, especially in California, and as such, needs to be titled in your trust. Our office makes sure that your home is titled in your trust when your living trust is created.

What happens if you sell your house? Your old home will be titled as the new owners wish. You need to make sure that your new dwelling is titled in your trust. Inform your realtor and the title company that you want your house titled in the trust, and provide them with the name of your trust. For ease, we provide our clients with laminated “business cards” which have the formal name of their living trust. We put them in the front of their red Estate Planning Portfolio binder containing the copy of their estate planning documents. Just give the formal living trust name to the institution drawing up your paperwork, and the institution should draw the paperwork up with the house as part of the trust.

What about refinancing? This is can be little trickier. Most homeowners assume, since nothing is changing is terms of ownership, that the house will continue to be titled in the trust. This is not always the case! Some institutions take the house “out” of the trust during the refi process, i.e, the institution will create a new deed transferring the house from “Home Owner, Trustee of the Homeowner Living Trust, Dated January 1, 2000” to just “Home Owner” to make it easier to complete the refi process. However, the house doesn’t always make it back into the trust. You, as the homeowner and trustee, need to be vigilant to make sure your house stays in the trust, or “goes back in” the trust when the refinancing is complete. We have seen a probate case due to a refinance which took the home out of the trust, but didn’t retitle it back into the trust at the completion of the refinance process. Just be vigilant with your realtor and/or banker to ensure your home is kept in the trust, or put back in the trust. We are always happy to help our existing clients with this process.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

Mary Smith got a pleasant surprise when she picked up her mail the other day. Her first husband, from whom she’d been divorced for over 10 years, had left her the proceeds from an insurance policy. The good news for Mary, however, meant bad news for Mr. Smith’s second wife, with whom he’d had 2 children. Although the second wife received other assets, the life insurance proceeds still went to Mary.

When someone purchases insurance, opens an IRA, or a bank account, the institution holding the account asks who should receive the proceeds of the account if you die, i.e., the beneficiary of the account. Normally a form is included with the application for you to indicate the beneficiaries of the assets. You fill in the names of loved ones, or perhaps charities, and think you’re done.

Loved ones pass away, or can become ’unloved’, and even charities dissolve. When beneficiary names aren’t updated or removed, problems will be encountered by the person or institution who administers your estate after your death. If a beneficiary is deceased, the financial institution will usually require their Death certificate. A charity which has dissolved, or can’t be found, is more problematic. Eventually, the money will usually go to the account holder’s estate, and/or be distributed to the account owner’s legal heirs.

Mr. Smith probably didn’t want his ex-wife to receive his insurance proceeds. You can prevent this problem by checking the beneficiaries of your accounts. You may be able to update this information on the institution’s website, or by calling the Customer Service department of the institution. If you’re unsure who to designate, or wonder if your trust should be the beneficiary, you may want to confer with an attorney. And make sure to check your beneficiaries every few years!

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

Financial institutions are always happy to assist people with setting up accounts that require the institution to hold your money. Since it’s your money, you assume it will be just as easy to access when you need it, right?

Not necessarily so. Even when you are trying to get your own money out, an institution may require you to have internet access, an email address, ID numbers or other information that you might not have readily available. However, these same institutions can help you. Here’s some advice that might make it easier.

There’s usually an 800 number you can phone for help. Call and explain to the institution’s representative what you are trying to do. If you’re computer savvy, connect to the website before the call: the representative may be able to direct you to information/forms on the computer. If you have a difficult time with a particular representative, excuse yourself and call back later. Keep doing this until you find someone who is willing to help you, someone you can understand, and who doesn’t mind you asking questions. Persistence will pay off here – eventually you’ll find someone who will help you. (When you find a person with whom you can work, try to get a direct line for them: this will help you in the future).

During the conversation, repeat to the representative what they say, so you know you understand them. At the end of the conversation, go over exactly what you need to have/do again. When you’ve done everything required, filled out any forms, and are ready to send the institution what they’ve requested, Stop! Call the institution again and tell them what you are doing. State you want to confirm you’re including all paperwork that’s required. Don’t be surprised to find there’s additional paperwork they want, or something you have ready to go that isn’t needed. When you finally send your paperwork, include all documents that were requested by any representative – you never know if you’ve received accurate information from each representative with whom you’ve spoken.

It shouldn’t be difficult to obtain your own money. Hopefully this information will make your efforts productive.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.