THE GIFT OF PLANNING
A Present for the Future Introducing a web-based way to help families express their deepest values and concerns
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A Present for the Future
THE GIFT OF PLANNING IS A WEB-BASED WAY TO HELP FAMILIES EXPRESS THEIR DEEPEST VALUES AND CONCERNS. How? We have harnessed technology to allow you to create planning documents as simply and affordably as possible—on the web and in the privacy of your home. Our simple, intuitive questionnaire extracts the knowledge and experience of attorneys (which is embedded in a sophisticated decision-tree) to produce highly individualized and legally sophisticated planning documents—all written in everyday language.
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A Present for the Future | thegiftofplanning.com
What are your deepest values? Some examples might include individualized care and concern for each family member (especially those who are less able to care for themselves), good stewardship of assets you’ve been blessed with, and support for organizations that help further your goals.
How do planning documents express those values? When you’re alive and well, you can choose to act according to your values. But when you’re incapacitated and after you die, you can direct others to act on your behalf according to those same values.
How are those documents created? The revolution in informational and computer technology has given us the means to take your answers to our online questionnaire and produce planning documents uniquely designed for you— almost instantaneously.
What if I don't understand the documents? Good question! First of all, we write our documents in everyday language, not in legalese. Second, we explain the purpose and meaning of every provision in every document in even simpler language. If you still have questions, you can email us, and we will give you a prompt email or phone response and/or refer you to additional resources on our website, on the internet, or in the law library.
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Let’s learn! Part of the planning process is educational. The more you know, the better you'll plan. We're here to help you learn.
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1 WILLS & TRUSTS
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Let's start with wills and trusts Most people understand the importance of a will—the most basic estate planning tool. But many know little or nothing about trusts. In this case, ignorance is not bliss. A will is a legal document that transfers assets to your heirs at your death. It’s clearly better than no plan at all. But it does nothing to keep the government out of your most private family decisions and the management of your family’s assets.
Advantages of a trust Trusts, on the other hand, keep private matters private. In addition, trusts are extremely flexible and can be designed to deal with very specific and unique planning situations. You can create a trust during your lifetime and fund it with most or all of your assets. Once in the trust, your money and property are under the control of the trustee — but don’t let that worry you. You can be the trustee of your own trust, which means you remain in control until you die. If you are married, you and your spouse can be the co-trustees. At any time you may take money or property out of the trust, put more into it, change it, or completely revoke it. You remain in total control as long as you wish — or until your death. Then the person you’ve named as successor trustee, usually your spouse, takes over. When your successor trustee takes over after you die, he or she can help your family avoid one of the most frustrating, time-consuming, and expensive legal processes—Probate.
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The main advantage of a trust is to avoid probate and almost all the associated costs What is probate? Probate is a court proceeding to pay creditors, resolve disputes, and transfer assets to the beneficiaries. A probate is generally required to transfer title to your home, other real property, and other titled assets not held in survivorship form.
How much does probate cost? The minimum costs for a probate in Oregon are fairly predictable. Take a look at two common situations:
1 Estate with gross
value of $500,000 (disregard debt)
2 Estate with gross
value of $1,000,000 (disregard debt)
Attorney & Executor Fees
$26,000
$46,000
Initial Filing Fee
$505
$505
Publication Fee
$250
$250
Total*
$26, 755
$46,755
* Does not include all fees
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2 PROBATE
Let's compare these costs with the costs of a trust As you can see, the cost of a complete trust from The Gift of Planning costs less than the initial filing fee! Probate*
$505 $250
Gift of Planning Trust** $575
$26,000
* With an estate gross value of $500,00, disregarding debt ** With The Gift of Planning
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How long does a probate take? Let's make some assumptions: • Your loved one who just died was well-organized • You quickly hire a competent probate attorney • There are no family disputes • Neither you nor your attorney ever procrastinates • Nobody makes any mistakes
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In this perfect scenario, you can expect the Probate to take six to seven months according to the following timeline:
Day 1
Date of death
Day 15
You have found and hired a competent probate attorney
Day 20
File initial court documents and will (if applicable)
Day 45
Initial court hearing for appointment of personal representative
Day 46—165
Creditor period (four month mandatory waiting period)
Day 166
Final accounting prepared and filed
Day 190
Disbursements made, probate over
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With a trust, no waiting period Why? How does a trust avoid probate and any waiting period? Simple. The transfer of legal ownership was made when you transferred legal ownership of your assets to the trustee of the trust. When you die, the legal ownership stays with the trustee, even though the person serving as the trustee changes. So . . . assume you are the trustee of your assets. When you die, your named successor trustee, often a spouse, automatically becomes the new legal owner without any need of a judge to say so.
If this is so easy and so sensible, why doesn't everyone do it? Of course, millions of people have created trusts and avoided probate. But most people avoid facing the fact that they are not going to live on this earth forever. Another reason is that a lot of people don’t understand the expense and delay of probate. A third reason is that even when people know, the decision doesn’t seem urgent, so they just put it off. A final reason is that it costs money to do something that doesn’t directly benefit you. But now that we’ve developed a sophisticated computer-driven decision tree that manifests your deepest values in affordable legal documents instantaneously on the web, ready for you to print out and sign, there is no reason why you cannot give this gift to your loved ones now.
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A GOAL WITHOUT A PLAN IS JUST A WISH Antoine de Saint Exupery
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LEGALESE Our planning documents are written in everyday language. We reject unnecessary legalisms, pointless repetitions, and convoluted sentences. We are guided by a passion for plain language and a desire to help you clearly communicate your deepest wishes and values with your family, friends, and closest community. The principal architect of The Gift of Planning unites a love of the law with a love of language. Having been an estate planning attorney as well as a professor of English and journalism, he comes uniquely qualified to transform a legal language still encrusted with medieval archaisms into the simplicity of 21st century American English.
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