Archive for March, 2009

Let’s take Sherry’s story one step further. Assume that after Tim and Daniel inherit the business, one or the other of the brothers dies. They have left the business to each other via a will, so the surviving brother will have to come up with money to pay estate taxes, if the deceased’s estate is worth more than $600,000, not to mention probate all over again.
What is more, and family business notwithstanding, Sherry or Christine will be at the mercy of the surviving brother and not protected in any way.
Sherry had very good reason indeed to be worried.
SHERRY’S FAMILY: SCENARIO TWO

Is there a way for Sherry’s family to avoid paying probate fees? Yes. As we’ve seen, these assets should have been put in a revocable living trust (page 51) instead of being left to one another via these various wills, so that they would pass smoothly and without probate fees from family member to family member. In this case a revocable living trust would ultimately save them $44,000. That alone is surely worth the $1,500, give or take, it would cost to set one up.