Anyone who has property or assets valued over $300,000 should consider protecting them from a possible lawsuit. Litigation, or “Who can I sue today?,” has become a popular means for the accumulation of wealth. We see it on television every day; people “recover” exaggerated sums of money for just about any reason. Today, if a person believes there is any possibility of obtaining money by means of a lawsuit, they will file a lawsuit. Defendants in a lawsuit settle without ever doing anything wrong because a defense attorney usually charges on an hourly basis. It is less expensive to settle than to litigate and defend yourself against the claim. Plaintiff’s attorneys, on the other hand, are likely to take the case on a contingency basis. Many times claims are filed because the plaintiff has nothing to lose.

When an attorney discusses a possible lawsuit with a prospective client, the lawyer will look at the probability of success. If probability is low, he or she will not take the case; if the probability is high, the next thing the attorney does is investigate whether the defendant’s assets are large enough to justify investing his time in the lawsuit. If the assets are small, the amount recovered would probably be small. As a result the attorney will probably decline the case.

One way to protect your assets is through offshore trusts. Trusts originated in medieval times when English nobles entrusted their lands and wealth to friends and other close relations before they went on crusade in order to ensure that their families were provided for during their absence. Over time the Trust has developed into the legal entity we know today. In the last few decades, the offshore trust has become popular. However, its improper and illegal use by some has given it a bad reputation as an asset protection tool.

There are many reasons why an offshore Trust can is an effective asset protection vehicle. The main reason to go offshore is because the countries that cater to asset protection don’t enforce U.S. judgments or liens. As a result, a creditor must litigate their claim within the foreign jurisdiction. For practical and economic reasons it is unlikely that a creditor will pursue the claim outside the United States.

The misconception about offshore trusts comes about because many falsely believe that an offshore trust will avoid having to pay income taxes. They have tried to unlawfully evade U.S. income taxes by using “secret” offshore accounts. Recent IRS measures are making it increasingly difficult to keep these accounts secret. There is nothing inherently wrong with offshore accounts. However, they cannot be used for tax evasion. Failing to report income and paying the appropriate tax can have devastating consequences.

When an offshore trust is part of an advanced plan it can legally and ethically safeguard your assets. Let’s assume that a prospective defendant has a high net worth and that the danger of losing it in a lawsuit exists. The assets can be protected by placing them in an offshore trust before a suit is brought. As with any legal matter, advanced planning is of vital importance. While few people ever imagine they will be sued and lose their assets in a lawsuit, however, in the current litigious society, advanced planning is necessary. An offshore trust is one of many alternatives that exist to protect your wealth.

For most of us, the value of our family home, represents our single – biggest, financial asset! Therefore, wouldn’t it, make sense, to hire, someone, who might make the biggest difference, in your results, from easing the process, to getting the deal, transacted? However, since, many find this period, stressful, etc, quality teamwork, and mutual trust, are essential (what is often called, being, on the same – page)! Before hiring someone, ask yourself, why do you (or don’t you) trust that individual, and what is needed, for a real estate agent, so he EARNS that vital bond! With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, using the mnemonic approach, what this means and represents, and why it matters.

1. Empathy; emphasis; efforts; excellence; endurance: It’s wise to thoroughly, interview potential representatives, before deciding, who, to hire, as your real estate professional/ agent! During this process, consider, whether the individual, is ready, willing, and able to effectively, listen, far more than he speaks! Does he seem to be able to customize his discussion, or, does it seem, like he is using some sort of script? Only, when you hire someone with genuine empathy, will he proceed with the understanding of your, specific needs, and priorities, and place his emphasis, accordingly! Are you convinced, he will place his efforts, on proceeding, with quality, and excellence, instead of the same – old, same – old? Since, there are often, obstacles, and challenges, you should seek, someone, with the endurance, persistence, etc, to make a difference, for you!

2. Attitude; aptitude; articulate; attention; actions: Great agents possess a positive, can – do, attitude, combined with a well – developed, aptitude, and skill – set, to serve their clients! Paying keen attention to details, articulating a message, which inspires potential buyers, to seriously consider, and bid, on your house, and proceeding with the best strategic and action plans, and, proactively, taking the actions, which produce results, are essential, to earning trust, and respect!

3. Responsive; region; relevant; reliable; responsible: To earn your trust, an agent must be responsive to your specific situation, etc, and produce, reliable, responsible approaches, to achieve, the finest possibilities, and results! To do so, he must know you region/ area, in – detail, and proceed, forward, in the most relevant way!

4. Needs; neighborhood: No two people, are exactly, alike, and, thus, it’s important to address the specific client’s needs, and priorities! In addition, he should be a neighborhood – expert, so he provides the best combination of knowledge, marketing, and input!

5. System; solution; service: Examine an agent’s suggested system, and consider if it addresses, and produces a quality, viable solution, to serve your best interests! The finest agents, consistently, provide the best service, etc!

Before hiring a real estate agent, do all you can, to ensure, he EARNS your trust! That’s the best way, to protect, your enormous investment, in your house!

Trust is hard to define, we do not realize when it’s lost. When that happens, we pull back our vitality and level of commitment. We may not indicate it apparently, yet we are less inclined to tell face to face that we are vexed and share what is essential to us.

As a result, we pull back from that individual. This loss of trust can be cleared or to some degree covered up – particularly in the event that we profess to be available yet deep down we are disengage. And those people who have done something to lose our trust may not even know it. The essence of trust allows people to live and work together, feel safe and belong to a group. Trust enables associations and networks to thrive, while the absence of trust can cause division, strife and even war.

On the constructive side, trust makes individuals feel anxious. At the point when trust is flawless, we will energetically contribute what is required, by offering our quality, yet additionally by sharing our devotion, ability, vitality and legit contemplation on how such relationship is functioning. Trust is having a sense of security when helpless. When we are dependent, we feel powerless, and we need trust to deal with the nervousness of this inclination. When trust is present, things go well; yet when trust is lost, the relationship is in danger. When the level of trust is low, individuals limit their contribution. Conversely, when the trust level is high, individuals compensate it by giving more.

The individual nature of trust can be an issue. However, it can be fixed when it isn’t communicated or shared. How would you even realize that trust is lost? Incomprehensibly, there must be at any rate a little trust so as to examine its need and make endeavors to revamp it, while if the loss of trust stays unaddressed, the relationship will develop increasingly far off. Yet, even trust that is earned can be quickly lost and cannot be easily regained.

Trust is regularly identified with initiative and power, yet it’s anything but guaranteed. To be compelling, one must acquire the trust to guarantee support and loyalty. Undoubtedly, any effective relationship depends on a degree of trust that must be earned.

However even trust that is earned can be immediately lost and can’t be immediately recaptured. When individuals lose trust in one another, it takes a lot of work to reestablish it. Individuals rush to reinvest in a relationship where trust has been broken. They for the most part move onward.

Likewise, it takes mental fortitude to raise loss of trust and to demand that someone else adjust their conduct. This may prompt discovering that you have to take a gander at your own conduct as well. Trust is a two-way road, worked by the conduct of every individual in the relationship. Trust is frequently lost when we feel hurt by another’s activity and accept that this activity was purposeful. Be that as it may, by offering our emotions to the individual who hurt us, we may start to see things distinctively and understand that their goal was not what we envisioned.

Similarly, in the event that we feel that we have planned something for lose the trust of another, we can search the other out and ask about what has occurred. In any case, this eagerness to be defenseless can at last lead to more noteworthy trust in light of the fact that the other individual feels that their own weakness and necessities are being regarded.

The elements of trust are fragile in significant connections, and the loss of trust can be exorbitant mentally, yet trust is a continuous trade among individuals and isn’t static. Trust can be earned. It tends to be lost. What’s more, it very well may be recovered.

Have you ever wondered why some people cannot seem to trust anyone? Maybe you are married to someone who despite all of your positive efforts of encouragement still struggles with being able to trust you. Maybe you have a friend who automatically distrusts everyone they come in contact with including supposed safe categories of people such as the police or a pastor. Or maybe you have a child who mistrusts everything you say. Regardless of any positive outcomes, they remain steadfast in mistrust.

There are some concepts that psychology does really well and some that it tragically falls short but one that has stood the test of time is Erik Erikson’s Eight Stages of Psychosocial Development. The first stage from birth to eighteen months is Trust vs. Mistrust and it is the foundational stage upon which all future issues lie. If a person learns to trust others for feeding, nurturing, comfort, and safety during this time, then they will have an easier time trusting others in the future. But if they don’t learn to trust, then the foundation has been laid for a lifetime of mistrust.

The Psychology. Simply put, Erikson concluded that all babies by their nature need to trust someone to care for them as they are incapable of self-care between birth and eighteen months. During these foundational years, a baby must rely on crying to communicate all needs: food, comfort, pain, nurturing, and safety. It is the responsibility of the caretaker (hopefully the parent) to meet those needs in a loving manner. If the infant fails to have his/her needs met then they learn not to trust their caretaker for meeting their basic needs.

The Child. A child who learns to trust the caretaker to meet the most basic needs now is capable of trusting them even further to meeting his/her wants and desires. On the other hand, a child who learns to mistrust the caretaker fails to develop any further trust and subsequently has a difficult time attaching to the caretaker. There is an unnatural distance between the caretaker and the child as neither one engages with the other, it is a distance that only grows as the child grows. But a child who has learned to trust will naturally run to the caretaker whenever there is trouble and the bond between the two is unmistakable.

The Adult. As a trusting adult, the evidence of trust will be seen in many relationships but most evident in a marriage relationship. However, if the adult as a child attached only to the same sex parent, they may struggle with trusting someone of the opposite sex, the same is true in reverse. More obvious is the adult who never learned to trust anyone as a child, now struggles with trusting friends, family, colleagues, spouse, children, and especially the spouse’s family.

The Cure. Just because someone grew up in an environment where they learned not to trust anyone, does not mean this must be permanent. It does mean that it will be a struggle or even an ongoing battle but it can be overcome with hard work, time and energy. Learning to trust God is one of the best ways to conquer mistrust and while this may seem counter-intuitive, it does work. In some ways, God is easier to trust than humans because He is not human but supernatural so the old wiring that says people cannot be trusted does not apply. God also provides a safe environment free from criticism or rejection. But for some, this is a hard concept to grasp as every fiber in their being tells them that if they cannot trust a caregiver, how can they trust God? So instead it becomes a leap of faith that is too big or scary. For the others that take the leap of faith and trust in God, their trust extends slowly to others as time has passed and evidence has been gained that some people can be trusted.

The next time you run across someone who has a hard time trusting others, spend a bit of energy in understanding their perspective and try to see life from their point of view. You will frequently find some trauma in the early years between birth and eighteen months that justifies their position. So, don’t give up on them, trust them first and be a light to others who are trying to find their way in a sea of mistrust.

Fear and uncertainty caused by the coronavirus pandemic have spread through the world. On top of those problems, the issue of police brutality of black men has been brought to the attention of the world once again. The tragic killing of George Floyd by a Minneapolis police officer and police killings of other black people have flooded the news. The demonstrations, peaceful protests, and sometimes riots and violence have captured the interest of the United States and other parts of the world.

The world is in turmoil, and investing may not be on people’s minds. But with the pandemic, many people have suffered financially so money is an issue. They may be looking for a way to earn some much needed money.

There are still a lot of gurus out there who want you to trust them by signing up for their stock investing newsletters. They promise big returns and make big claims. Their testimonials sound almost too good to be true. Perhaps they are.

The so-called investment gurus are touting their programs even as the unprecedented times caused by the coronavirus have affected everyone. They are saying that there are exciting investment opportunities in oil, banking, crypto, medical companies, and more even during these troubling times. They have common names like Jon, Tom, Ken, Alex, Mark, and Jeff plus some more uncommon names such as Jordan, Derek, and Kyle. Who can you trust? It is hard to know.

Sometimes they promise 100% returns on your investment or they may be bold enough to promise $2,000% in a year. They say that you will most likely get your return on investment with your first trade. If they promise big returns, it is best to make sure they have a money back guarantee if they do not produce as claimed.

If those promises would come true, it would be a great opportunity and blessing. However, too often they are false promises which do not come to fruition. If you can find a program which pays as claimed, you can consider yourself one of the lucky ones.

It’s pretty pathetic when not losing is considered winning, but that is the case in so many investments. We may be happy to just not lose our shirts although the gurus told us we would win 100% or more with their recommendations. When going with the recommendations made by the gurus, it is important to cut your losses before you do lose your shirt so to speak. Winning is the goal, of course.

Fake claims and dead ends can bring a lot of stress. Minor setbacks can be overcome without major losses. It is tempting to listen to investment gurus to follow in their footsteps to get winning trades. However, you can’t trust many or most of them. It is best to research and learn so that you can trust in yourself to make the best decisions.

If you are still confused after reading countless reviews on human pheromones, in a futile attempt to determine which attractant pheromones work the best? Or which work at all? I may be able to steer you in the right direction.

Months ago I conducted my own experiment. An empirical human pheromone review if you will, in which I tested the top ten pheromone products on the market and documented my testing results.

The empirical method is one of the most direct and to the point methods of evaluation. In other words, I tried the stuff, and documented whether or not others responded to it.

The attractant pheromone called Liquid Trust is produced exclusively by Vero Labs, and is a very odd bird, to say the least. This pheromone product contains oxytocin, is a very complex mixture, and it is claimed the pheromone compound will essentially make people trust you more! The side benefit of this pheromone is purported to be the ability to create a trusting and passionate aura around the wearer. In lay persons terms, Liquid Trust is supposed to make ones targets trust and desire you.

This claim was to hard to resist. I decided to put Liquid Trust to the test.

The day I decided to evaluate Liquid Trust, was a day I was scheduled to meet with a male purchasing manager at his business to re-negotiate a sales contract. This was my second meeting with this manager in question. The sales manager is a twenty-seven year old, happily married man with two small children.

Prior to walking into this purchasing managers office I applied three sprays of Liquid Trust, one spray behind each ear, and one to my throat area. This pheromone spray drys very quickly, and has a quite mild but pleasant smell. However, to my surprise, I immediately felt myself reacting to this strong pheromone attractant!

It is quite difficult to explain, I had read warnings about this from other pheromone users, but of course did not believe them. I had a rather euphoric feeling come over me, and my legs actually started shaking for a few seconds! It was not a scary or unpleasant feeling at all, as ironic as that sounds, it was as if I knew I had just been exposed to “something” very powerful, and it had just done “something” to me.

Keep in mind, certain pheromone products, such as Liquid Trust, are very powerful when first applied! If applied near ones own face, it is quite possible to quickly react to some of these products yourself! Lesson learned!

I waited for my composure to return, and then walked into the purchasing managers office to conduct our sales meeting. After barely a minute I could see his face turning red and his mood lightened, he seemed genuinely happy to see me, as if I were an old long lost friend.

As time went on, we never got to talking business, it was all personal, as if we were two buddies! This encounter got so chummy, he even started telling me about his extra-marital activities, which included frequent trips to Mexicali, Mexico in search of ladies of the evening! This particular purchasing manager during my first and only previous visit, was completely professional, pressed for time, and ALL business! Not today.

After about twenty minutes with the purchasing manager, still spilling his guts by telling me more than I ever wanted to know about him, his assistant manager pops her head into the office with a question. He invited her into our meeting, and shortly after stepping into the rather small and enclosed office, she appeared to respond to this Liquid Trust phenomenon as well!

Lets just say, without the graphic details of course, the assistant purchasing manager, an attractive women in her early thirties, she seemed to respond just as strongly as the purchasing manager did himself! To make matters worse, she seemed very interested in me, and what I had to say, to the extreme. Simply put, we could not get rid of her, she would not leave, but kept coming up with business reasons why she needed to speak with me!

Two hours later we concluded our business. This sales call is normally a half hour affair, tops! The business aspect of this meeting was all concluded in the last 10 minutes, in which the purchasing manager simply “Gave Away The Farm” in signing a new contract with my employer, and he did so with a smile, without complaint, wanting to simply return back to a more personal discussion as opposed to the business topic at hand.

Folks, I have never had this happen during a business to business sales call, and re-negotiation session, ever! When I tried to write down my observations during this encounter, it was difficult because the affects were so telling, but so bizarre! This incident was one of the many joys in conducting human pheromone reviews!

In conclusion, Liquid Trust is a very powerful pheromone product folks. I am not a scientist. I do not know how or why it does what it does? However, I am capable of testing and documenting my observations, and the pheromone review of Liquid Trust was very convincing that this product is capable of producing a strong response.

On a side note however, I will mention that Liquid Trust does not last long after one applies it, it will dissipate and seem to have no effect after roughly three hours or so. Which means that Liquid Trust is best suited for those special encounters only, such as before a big sales meeting as I did here, or before a job interview perhaps, or a meeting with your boss to discuss a raise. It is not practical to be worn every day, nor to be worn all day long.

Do to the short duration in which the average application is effective, I relegated Liquid Trust to the number two spot on my list of the top ten pheromone products.

A prospective client called one day, stating she needed me to draft a revocable living trust for her. “Why do you need that particular document?” I asked. “Oh, [insert name of TV pundit] says you must have a living trust in order to avoid probate.” “And why do you have to avoid probate?” I asked in response. “Because [pundit] says probate is a nightmare and you must avoid probate at all costs.” I asked the woman if she had ever dealt with probate before (“no”) and how many probate estates [TV pundit] had ever handled (none, since she is not a lawyer). I assured this caller that I had a lot of experience with probate, that it is not the “nightmare” some would make it seem, and that living trusts are not for everybody. The lady was nonetheless adamant about the trust, she refused to listen to me explain why the trust might not be good for her — or address her legal needs — and she hung up the phone on me.

I don’t like losing prospective clients, but if they do not at least listen with an open mind and discuss these heady legal issues with a professional who has expertise in this area, then perhaps they will not be a good client.   The truth is, I would have gladly drafted a revocable living trust for her — since I would have made more money doing that than traditional estate planning — but before I did, I wanted her to understand all the ramifications of using this legal tool.  She was not interested in hearing what I had to say, and she chose to move on.   This was alright with me.

Revocable living trusts (RLTs) have gained superstar status in some circles in recent years as a way to avoid probate. It is true, they do help avoid probate — if they are set up and administered properly. They also help avoid guardianship proceedings (more on that in a moment). But what many people do not understand is that often the living trust creates more problems than it solves: For example, the costs to set up the trust, transfer all the assets into the trust, and continue to maintain the trust properly over the Grantor’s lifetime often costs at least as much as probate, if not more. I often say to clients, “Why should you pay the costs to administer your estate? Why don’t you enjoy your money while you’re alive and let those costs come off of what your heirs receive later?” Because the truth is, there is no free lunch. Somebody is going to pay for transferring your assets to your heirs. 

Additionally, in my experience as an estate planning lawyer who also administers estates, most of the revocable living trusts I’ve dealt with have not led to a complete avoidance of probate. This often occurs because, as time goes on, Grantors forget to title new assets in the trust’s name. After death, when the Grantor’s family seeks my counsel in winding down the trust, there are assets that did not make it into the trust and we still have to file a probate proceeding. So what problem did the trust solve?

RLTs do help avoid guardianship proceedings, but there are problems in this area, too. While the trust appoints a designated person to take over finances if and when the Grantor can no longer make decisions, there is no day-to-day oversight on the job they’re doing. The only way to enforce compliance or demand proper performance is to bring an expensive litigation proceeding. The guardianship proceeding, on the other hand, is regularly scrutinized by the court system at a lower cost.

In summary, whether the revocable living trust is right for you is something you must discuss with your attorney. Keep an open mind and explore all your options with a member of the Bar of your state, preferably someone who regularly practices law in this area.

Property you own can be transferred to your heirs or chosen beneficiaries upon your death in one of several ways. If the particular asset is owned by you and another individual, as in the case of a residence which you jointly own with your spouse with a right of survivorship (JWROS), the property will automatically pass to your spouse upon your death. Assets may also pass by means of a beneficiary designation, such as in a transfer on death deed or in a pay on death account with your bank. A third possibility is property passing via the probate process, either in accordance with your will or (in the absence of a will) in accordance with the laws of intestacy.

A fourth means of transferring ownership of your assets is by means of a trust agreement, such as a revocable living trust. This method offers a number of advantages as the choice component of an estate plan. A well-designed trust agreement can be the vehicle by which your assets are transferred after you die. In addition, the trust can include detailed instructions as to how your assets should be managed by your appointed successor trustee in the event you become incapable of managing them yourself. However, in order to take full advantage of a trust’s benefits, your assets must first be placed in the trust.

When your estate planning lawyer refers to funding your trust, he/she is talking about placing your assets into the trust. Let’s look at some basic principles relating to this important, but often overlooked, aspect of creating a trust as the foundation of your estate plan.

What is so important about funding the trust?

A well-designed trust agreement is but an empty shell and of little or no value to you (the settlor) or your intended beneficiaries unless it actually holds your assets. Should you die prior to placing your assets in the trust, those assets will likely be subject to the probate process (unless they are otherwise held JWROS or pass in accordance with beneficiary designations. However, assets which are retitled in the name of the trust will immediately be subject to the management and control of your chosen successor trustee.

Should I transfer all of my assets into my trust?

Not necessarily. It is true that many of your assets should be transferred as soon as the trust has been created, including such assets as the following: your personal residence; stocks, bonds and mutual funds you own in your own name; checking/savings accounts and certificates of deposit; personal property and collectibles; business interests, such as stock in corporations you own, partnership interests and membership interests in limited liability companies; and, your intellectual property rights, such as patents, trademarks and copyrights. An important aspect of establishing your trust should include a comprehensive review of all of your assets with your estate planning lawyer in order to determine which of those assets should be transferred to the trust.

Why not just transfer all of my assets into the trust?

There are a few categories of assets which should not be owned by your trust. For example, any individual retirement accounts, pension plans and 401k accounts should not be owned by your trust. A transfer of such retirement plans to your trust may well be treated by the IRS as a taxable distribution of the entire account, and thereby trigger an unwanted tax liability to you. In general, you would do well to remember that estate planning with respect to retirement plans is a complex subject area and one that should be addressed with your lawyer.

If you own a second home, either as rental property or as a vacation home, you should also carefully consider whether transfer of that property to the trust is advisable. Is this property subject to a mortgage which includes a “due on transfer” provision? If so, your lender may treat a transfer of the property to your trust as triggering your obligation to pay the loan in full. Again, this is an area you need to discuss with your estate planner.

How do I go about transferring those assets which should be placed in my trust?

The answer here is: it depends on the particular asset being transferred. You would transfer your residence into the trust by recording a quit claim deed in the real property records in the county in which the property is located. So, for example, if you are the sole owner of the real property, you (being the grantor) would transfer the property to “yourself as trustee of the [name] of the trust”, as grantee. You will want to be careful here to not merely title the property in the name of the trust. A transfer to “the John Doe Trust,” may not be recognized as legally effective; instead, the transfer should be to “John Doe, Trustee, of the John Doe Trust under agreement dated January 1, 2001”.

Your checking accounts, savings accounts and certificates of deposit can be transferred to your trust by asking your bank to provide you with the appropriate signature cards, which will then need to be signed by the current trustees of your newly created trust.

Will I need to have new checks issued to me in name of the trust?

Most likely, you should not have to do that. Retitling your checking account in the name of the trust should not have any effect on the account holder’s name printed on your checks.

How do I transfer stocks and mutual funds I own?

Assuming your shares and mutual funds are held by your broker, you will need to instruct your broker to change the title of your personal accounts to the name of your trust. This may involve completing a new brokerage account application. Your broker may require you to provide evidence of the trust’s existence, in which case you will need your lawyer to draft a certificate of trust to be signed by you as settlor.

If you are holding original stock certificates for a publicly traded company, you may need to open a brokerage or investment account in the name of your trust, and then deposit the original stock certificates with the brokerage or you may need to contact the transfer agent designated by the corporation which issued the stock and follow their instructions for retitling the stock in the name of your trust.

What if I own interests in a partnership or limited liability company (LLC)?

You will need to transfer your partnership or LLC membership interest to your trust by means of a written assignment of interest signed by you and acknowledged by the managing partner or managing member of the LLC. You should first review the governing partnership/LLC operating agreement to ensure that the agreement does not preclude such a transfer.

Do I need to title my car and RV in the name of the trust?

Although you can transfer title of your personal vehicle(s) and/or RV(s) to your trust, it might well be preferable not to do so. If you have a vehicle accident, the fact that your vehicle is titled in the name of your trust might result in the injured party believing you have deep pockets, thereby encouraging a lawsuit. You might be better advised to segregate a high-risk asset (such as your vehicle) from your lower risk assets.

To summarize, employing a revocable living trust as the foundation of your estate plan will allow your assets to be distributed after your death without having to go through the probate process. Having a trust will also allow your chosen successor trustee to manage your property while you are incapacitated, thereby avoiding the necessity of an expensive guardianship or conservatorship process administered by a court. However, in order to fully realize the benefits of a trust, you must properly fund your trust. We recommend you use the above guidelines as the basis for a comprehensive review of your assets and discussion with your estate planning attorney.

© 10/23/2017 Hunt & Associates, P.C. All rights reserved.

Most clients want to avoid a nursing home stay at all costs. Institutional care may be necessary, but no one invites it before absolutely necessary. If you have a Revocable Living Trust, you may even believe that you have done all that you can to avoid probate, guardianships, and unwanted institutionalization. Sadly, many people are mistaken.

Most folks are told that their trusts discourage court-appointed guardianship, sometimes called living probate. This is probably true, but only to a very limited extent. By providing a surrogate decision-maker, it is thought that the trust, and the accompanying estate planning documents, make a court-appointed guardian unnecessary. Sadly, that assumption is not always true.

Take the example of Mollie Orshansky. In preparing for her retirement, Mollie met with her lawyer and implemented a plan for her health care and the financial management of her two million dollar estate in the event she couldn’t make decisions for herself. Mollie established a revocable trust naming her sister as a trustee, and executed a health care proxy naming her niece.

Her health began to decline in the year 2000, and despite her best efforts to plan for the worst, in 2001 a local court in Washington, DC, ignored her efforts to determine who would watch over her and where she would live. Instead, the court appointed a non-family member to act as Mollie’s guardian and an attorney to represent her, and placed her in a hospital in the nation’s capital city. A legal battle ensued between Mollie’s family members, people she had chosen to watch over her, and officials acting on behalf of the court and city of Washington.

Michael Kutzin, the attorney that represented the family explained what happened: “[Mollie Orshansky’s] case demonstrates many of the problems that seniors and their families often face after falling into the guardianship whirlpool.” Mr. Kutzin testified that “[g]uardianship statutes generally recite lofty principals of honoring the wishes of an incapacitated person where possible, and call for a myriad of protections… In practice, however, once a guardianship proceeding is brought against someone, machinery begins that often presumes that a guardian is required, and runs roughshod over the wishes of the senior and his or her family. This is particularly true where…the proceeding is commenced by a hospital or nursing home, and family members live in another state. A similar disregard for the wishes of the senior and her family often occurs where the senior has significant assets. Both of these factors were present in the Orshansky case.”

Most trusts actually become a weapon for public guardians, because, in addition to marshaling assets under a common control, they often require that in the event of disability, the trustee must pay all of the trust assets necessary to provide for the Grantor during the disability. A public guardian can rely on such a provision to quickly and easily control all of the estate assets. Moreover, deprived of assets, how does the victimized senior protect his or her rights? The combination of easing control and disarming a possible legal challenge may actually encourage the appointment of a guardian! At a minimum, one would hope that their estate plan would discourage a guardianship.

In Mollie’s case, her family refused to leave her victimized by the court and the guardian. Her family, led by Mollie’s niece, expended their own monies for legal representation in an effort to free the imprisoned senior. Fortunately, they were ultimately successful, but not before spending more than $200,000.00 in legal costs and expenses. Sadly, if Mollie had been like most seniors, with family members unable to expend such sums in her defense, she would likely have ended her life imprisoned in an institution against her will, and the wishes of her loved ones. You can read about Mollie, in the testimony of her attorney and family before the United States Senate Special Committee on Aging, in “GUARDIANSHIP OVER THE ELDERLY: SECURITY PROVIDED OR FREEDOMS DENIED?,” a link to which can be found here.

You can also read about the danger of guardianship. As Senator Craig explained:

• “Guardianship can divest an elderly person of all of his or her rights and freedoms that we consider important as citizens in this great country. When full guardianship is imposed, the elderly no longer have the right to get married, vote in elections, enter into contracts, make medical decisions, manage finances, or buy and sell property. They cannot even make decisions on where they want to live. All these rights are taken away from the elderly and vested in a surrogate decision maker – the guardian. Our investigation has confirmed that some guardianships can have onerous effects on the elderly. For example, guardianship may drain the elder’s estate, result in protracted legal proceedings, and substitute the judgment of a total stranger for those of the elder and their family. A recent case has come to my attention where a court actually terminated a marriage pursuant to a guardianship.”

And yet, witnesses and professionals agreed that an elderly person accused of being incompetent or incapacitated has less rights in state probate court, than does a person accused of committing a murder in a criminal court.

If you want to disarm the third party public guardian, your trust must have complete advanced competency planning, including the following provisions:

• The trust must define incompetency or incapacity;
• The trust should appoint a personal physician by name to determine your competency, in agreement with another independent physician;
• Your trust should restore to you legal authority to act on your own behalf upon recovery from a disabling medical condition without resort to a court or legal proceeding;
• The trust should nominate your successor trustee and/or attorney-in-fact to act on your behalf in every respect in the event that you are deemed by your personal physician to be incompetent or incapacitated;
• The trust should have provisions authorizing the trustee to refuse the request of a guardian appointed by a probate court to surrender trust assets to the guardian’s control; and,
• In order to protect the trust assets, the trust should have a provision that permits the trustee to terminate the trust and transfer assets to another trust for the benefit of the beneficiaries if the court-appointed guardian threatens to commence, or commences legal action to seize the trust assets.

These provisions should be permitted by the trust, but the operative provisions should be found in a separate addendum to the trust. Why? If the issue arises, the addendum permits the trustee to provide the operative provisions to third parties without compromising the confidentiality of the trust.

In addition, you should consider clearly stating your preference for home health care over nursing home care, and consider empowering the trustee to keep you at home. These provisions will significantly reduce the risk that you find yourself in a nursing home against your will, fighting for your right to make life decisions. Moreover, these provisions will enable you and your family to retain control of major decisions, such as where you live, your medical treatment, and with whom you visit and associate.

Only when you have a trust that aggressively protects your rights and interests in the event that there arises a question of your competency or capacity to make decisions for yourself, can you rest assured that your estate plan does all that it can to discourage probate during your life.

True or false? Teams that practice good teamwork contribute to an organization’s success.

Not only “true” but blatantly true.

The fact may be plain and simple, but creating a successful team, leading a successful team, or participating on a successful team is not so plain and simple. The sticky word is “successful.”

Creating a team is easy. Sitting in the leader’s chair can be fairly simple. Team membership may just mean showing up.

But successful? Hold on and wait a second.

This article explores two requirements for team success. For each requirement, we explore specific action items to help you and your team fulfills those requirements.

We start with trust.

Trust: A Successful Team’s Foundation

A team that builds its harmony on trust enjoys the ease and enthusiasm that bring success. In fact, that trust-foundation makes the harmony all the sweeter.

Steven Covey, author of The Seven Habits of Highly Effective People, states, “Trust is the highest form of human motivation. It brings out the very best in people. But it takes time and patience…”

Trust and team are almost synonymous. However, you cannot assume that trust develops naturally as part of the team’s personality. Bringing trust–what it means, how it works, and why it matters–to the front of every team member’s mind can be a great step towards team success. A great step that demands your attention.

Here are three underlying benefits your organization–and its customers–will experience once your team works with high levels of trust.

Increased Efficiency — As team members trust that every one will carry out her responsibility, all can attend their specific functions more completely. The decrease in distractions gives an increase to efficiency.

Enhanced Unity — The greater each member of a team trusts other members, the greater strength the team assumes. This unity strengthens the team’s commitment to fulfill its purpose.

Mutual Motivation — When two (or more) people trust one another, each one consciously and subconsciously strives to uphold the others’ trust. That motivation stimulates each team member to seek peak performance.

So, how do you build trust as a fundamental team possession?

Here’s the short answer: build a clear structure and process to promote trust. Team members want to trust one another from the outset. If specific trust-building tools and tactics are missing, however, they will have a hard time building that trust.

Below are three traits that establish a foundation for trust among team members. Notice how each trait focuses on interactions among teammates.

Open Expression — Every member team needs ongoing opportunities to express her thoughts regarding the team’s purpose, process and procedures, performance, and personality. From the team’s get-go, the team leader can initiate every individual’s chance to speak to the team’s actions. A truly effective leader insures that even the quietest member is heard (and so becomes increasingly comfortable speaking up). The more continuously everyone on a team has chances to express openly, the more every one grows used to speaking freely and to being heard. Open expression quickly becomes everyone’s pleasure, and not just the leader’s responsibility.

Information Equity — When it comes to information relevant to the team and the team’s function, the rule must be “all for one and one for all.” Information available to one team member must be available to all members. The secret this trait is in its process. Standardized practices for sharing information equally are simple. A few minutes setting up a team email address and holding a five-minute update each morning are two examples. These can establish everyone-gets-to-know-what-everyone-gets-to-know behavior patterns. Trust level rises when no one fears that she receives less information than others.

Performance Reliability — We trust people we can count on. We count on people who do what they say they will do when they say they will do it. Conscientious work on the first two traits produces results in the third. Open expression and shared information enhance team members’ performance reliability. Open communication can place everyone’s performance cards on the table: strengths and weaknesses, confidence and fears. Equal information allows everyone to know what and how every other team member contributes to success. This knowledge produces shared support, praise, and assistance. What is more team-like than that? When expectations of every team member are up front and open, every team member strives to perform at full force for the good of the team.

TIPS FOR TEAM TRUST

The following five tips support the idea that Open Expression, Information Equity and Performance Reliability grow from how well a team communicates within itself. These tips are for the team leader and every member of the team.

1. Talk the Talk. Take responsibility for role modeling Open Expression. Don’t be afraid to share information about yourself. Encourage others to do the same. Keep at it.

2. Build the Pattern. At team meetings and water-cooler chats, establish the tell-and-ask pattern. Share information about your work and ask questions about your teammate’s work. It takes a bit of repetition to anchor the pattern. It’s worth it.

3. Distribute to Discuss. Make it team belief that one reason for distributing information to everyone is so that it can be discussed. “New data” can be a constant agenda item at meetings. “What do you think?” can be a constant question among team members.

4. Make Good News. Usually people want to complete work rather than fulfill roles. Not much to say about one’s role. Much to share about one’s work. Create opportunities for people to comfortably share good news about the work they perform. (Bulletin boards, email news, lunch discussions, for example.

5. Use a Constructive Question. Have your team adopt a specific question that does two things: directs attention to the team’s purpose and stimulates communication. The question can be an icebreaker at team meetings, a common follow-up to “Hi! How are you?” in the halls, a regular element in team reports. Example questions: What progress have we made? What have we done that makes us proud? What obstacles have we overcome?