WILLS, WON'TS AND TRUSTS

From: <DukeoW@aol.com>
Subject: WILLS, WON'TS AND TRUSTS
Date: Tue, 18 Aug 1998 16:31:38 EDT

Previous Article (by Subject): purchase of one share Bertrand Horwitz
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Wife and I  just got thru second round of wills. This one required a trust for
a disabled son. These things aren't a hundred or two each anymore. 

On subject of insurance. I have dropped all mine except one paid up policy and
a free one that followed me into retirement. Adding coverage of a years pay
would cost over 2k a year and would go to uncle sam as the unified credit
isn't big enough.  Group policies are difficult to have ownership in someone
elses name.  
To me insurance is not required when everything is paid for and significant
assets are in place. Pensions pay costs, income from investments pays for
travel and other needs. A reserve for medical expenses can't require too much
over basic medicarea/HMO complete coverage. I would love to be able to tax
shelter a couple K a year each in a MSA for nursing/home care expenses later
on. Not yet on horizion. 
 

Jointly owned property is a big bugaboo too.  The passage to the survivor is
OK and tax exempt, but the wasted credit of the first death is gone forever.
Divided ownership and establishment of a Trust bypass and or revocable living
trusts get around this mess. And make the lawyers rich!!   But it avoids the
37 to 55% estate taxes. 

My assets seem to be increasing faster than the unified credit.  Another
problem for those (not me) who have expensive houses and a big loan. It is
valued in the estate at the house value and not net of loan. A real bummer.
Dunno if same for investment accounts with margin loans, but I'd bet it
similar. 


 duke



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