Santa Clarita's Real Estate Lender: December 2011

No one ever wants to consider estate planning. (Mulling over your mortality doesn't posses much appeal, as a rule.) However, properly ensuring that your loved ones will benefit from your estate while having to deal with as little trouble as possible is critical.
 
One key estate planning document you should consider is a revocable living trust (RLT). An RLT is akin to a will in that it describes and controls how your estate goes to your beneficiaries, but it differs from a will in many ways.
 
A primary difference is probate. A will essentially dictates to whom your estate should go to upon your death and how, but wills are typically held up in the process know as probate. Probate allows a judge to review and confirm the will, to ensure that that your last wishes are indeed being carried out to your specifications, and then your assets are moved to your beneficiaries. In some states, that process can last as long as two years and can require your beneficiaries to pay statutory fees before some assets, such as real estate, can be transferred to them.
 
But an RLT avoids this. An RLT is established by a person referred to as the grantor or trustor, and is managed by someone called the trustee, who is often the grantor, but not always. The trust could have multiple co-trustees, such as a husband or wife, or even an institution. A successor trustee is also established. This is the person who will manage the trust when the grantor dies or becomes unable to manage the trust due to some incapacity.
 
That is an important element to an RLT, because unlike a will, your beneficiaries are taken care of by an RLT even if you do not pass away. If, for example, you were rendered comatose, your loved ones would still be taken care of. Because of this RLTs are worth considering not just in cases of classic "what will happen in the event of my death" types of estate planning, but even for young married couples with children, and other individuals who have people depending on them.
 
This is another difference between an RLT and a will – the trust holds your assets while you are alive. When an RLT is established, you "fund" the trust by putting your assets into the trust, but you still have full control of your assets while you are alive and have your faculties. You are simply now controlling them as a trustee of the trust.
 
If you were to pass away, the assets are already part of the trust, and can then be transferred to your beneficiaries without having to go through probate. This is also helpful if children are involved. The trust can be set up in such a way to administer how they are benefited by the estate, so that the assets can't be squandered or mismanaged. This also helps you avoid the need to establish a guardianship or conservatorship.
 
There are other benefits to an RLT, as well, such as being able to get the full benefit of estate tax exemptions, and keeping your estate out of the public view that would otherwise occur in probate. That said, RLTs are typically more expensive to establish than drawing up a will, because they involve more planning.
 
If you're interested in learning more, make sure to contact an estate planner who can take you through the steps of establishing an RLT in greater detail. Making informed decisions about how your estate is managed might be a tough task to face, but you'll rest easy knowing that you did.

As winter weather and quickly fading sunlight bring an end to exterior home projects and landscaping, homeowners must turn their attention to the inside of their homes. While the holiday hustle and bustle might seem like a difficult time to schedule in any household projects, it's a great opportunity to address smaller scale home maintenance and repairs that don't gobble up too much schedule space. Here are 10 great ways to keep the home humming in fifth gear during the holiday season:

1. Consider wrapping your hot water heater tank to help keep water temperature high and drive down your utility bills. Make sure to get proper instructions on how to install, and pay close attention to all safety requirements.
   
2. Similarly, get some duct tape and pipe insulation from the local home store and wrap your hot water pipes. Not only will you save money, but you won't have to wait all morning for your shower to warm up.
   
3. Inspect and clean your laundry appliances. First, unplug them from any outlets. Then start with the washer by disconnecting the water hoses and see if the fiber or rubber washers need replacing. Disconnect the vent hose from your dryer and clean any built-up lint.
   
4. Clean underneath your refrigerator, and clean off its coils, and change your fridge's water filter if it features water dispenser.
   
5. Inspect the grout on your kitchen and bathroom tiling around sinks, showers and tubs and clean and repair where necessary.
   
6. Remove the drains from your sinks and clean them thoroughly. Also, remove the lower, u-shaped "trap" under your sinks and remove any clogs. Similarly, remove showerheads and any removable faucet heads and soak them in vinegar to clean off mineral build-up.
   
7. Tighten things up by going from room to room with flat-head and Phillips-head screwdrivers, as well as some Allen keys, securing any loose hardware on furniture, cupboards and similar fixtures.
   
8. Have any banged up wooden furniture? Sanding down and re-finishing dings and scratches is something that can be accomplished out of the way and on a manageable scale. Make sure to do any refinishing in a well-ventilated area.
   
9. As the season winds to a close, make sure to take down any holiday lights. If you staple your strings of lights to your home's exterior, make sure to fully remove the staples with a pair of pliers to prevent them from rusting and spoiling your home's trim.
   
10. Make sure to mulch any Christmas trees and similar decorations, such as wreaths and garlands. Most home stores and tree sellers provide mulching services, and your city or county trash service might do so as well.