An increasing number of enlightened and responsible attorneys say probate is an unnecessary expense and burden on the heirs. They state that the solution is to set up a Revocable Living Trust and, when coupled with an estate organizing system, the RLT greatly reduces the time and expense of an estate settlement.

When property is owned jointly, with "loving wills", eventually (following the second death) the heirs' inheritance will end up in probate court if the probatable assets are above the relatively low statuatory legal threshold (only $75,000 in Florida). If all you have is a Will (Last Will and Testament), the executor of your Will (usually a loved one) must settle your estate through the Probate Court.

In addition, there are another 37 administrative duties required of executors. Most executors will not have the time to learn all the proper procedures, complete all the forms required, and make all the trips to the Probate Court. Probate attorneys realize this fact and, of course, capitalize on it. In most states, statutory law allows attorneys to charge a fee of 2% or more of the estate to be probated. However, when you add on extraordinary fees and administrative fees, the percentage increases. Many firms charge a flat 5%, but it is not unusual for the fee to run even higher than that. It is not difficult to see why attorneys who make their incomes from antiquated probate laws, do not want those laws changed.

Ralph Nader (himself a lawyer) described probate as "the screwing of the average corpse." Probate is a system that is supposed to ensure that a dead person's debts and taxes are paid, that his will is valid, and that his estate will go to the people named in his will.

Lawyers have a legal monopoly on performing probate. They typically earn over $1,000 per hour for this "service." Says David Hapgood in The Screwing of the Average Man: "Most of the money spent on probate goes, by widespread agreement, to support expert make-work. Judge William Haworth of Oklahoma, interviewed on the CBS television program "Sixty Minutes," estimated that 90 percent of probate legal work is unnecessary; he added that what work had to be done could usually be done better as well as more cheaply by a legal secretary." [From: The Economic Rape of America, Chapter Ten]

MANY ATTORNEYS AND CPA'S TALK DOWN A LIVING TRUST

People invariably ask, "Why didn't my attorney tell me about the Living Trust?" You may believe that the reason was that the attorney would not get his or her probate fee. Attorneys talk among themselves about their "accumulated Wills," much as you and I would speak about retirement plans. The attorneys will comment to each other with pride, "I've got ten drawers of Wills," or "I've got seventeen drawers of Wills," or "I've got twenty-three drawers of Wills." Such Wills are sometimes seen as an attorney's "retirement plan"!

However, after having recognized the tremendous potential of the Living Trust, most of the attorneys then admit that they had never been taught about the Living Trust in law school. Unlike the typical legal courses, which include Wills and torts, the Living Trust is included only in the elective courses taught for attorneys who wish to specialize in estate planning. Consequently, even though greed may be a reason why some attorneys try to steer clients away from a Living Trust, lack of knowledge or familiarity with the Living Trust can also be a major factor.

Occasionally, someone will turn to his or her accountant for advice about the advisability of having a Living Trust. Often the accountant will respond that, since the client's estate is under the federal estate tax exemption, the client does not need a Living Trust. When you die, your estate is not subject to the federal estate tax if the value of your estate is less than the exemption amount. For people who pass away in 2022, the exemption amount will be $12.06 million (it's $11.7 million for 2021). For a married couple, that comes to a combined exemption of $24.12 million. The accountant is only addressing federal estate taxes, not the probate process. Most accountants are not knowledgeable or experienced in estate planing - which is the function of reducing estate taxes and probate costs in the future. Typically, estate planing is not a normal function of an accountant.

If an attorney or accountant tells you that your estate will not have to go through probate or gives you a specific probate cost, ask him or her to put the statement in writing.

You may be surprised to know what some notable people paid to have their estate settled through the probate process.

• Dwight D. Eisenhower - $2,905,850 estate reduced by $671,420 - a 23% loss!

• Nat "King" Cole - $1,876,640 estate reduced by $1,577,740 - a 84% loss!

• Franklin D. Roosevelt - $1,940,990 estate reduced by $574,860 - a 29% loss!

• General George S. Patton - $844,360 estate reduced by $266,820 - a 31% loss!

With a Revocable Living Trust your heirs avoid the high costs of probate because specific assets are titled to the name of your trust, with you (or both of you) as trustees. While you are alive and competent, you control your financial affairs much the same as you do without a trust. You manage your assets, receive the income, pay bills, etc. However, when you can no longer manage your affairs (either when determined incompetent or at death), your successor trustee (someone you named) automatically takes over. Other assets may then pour over into the trust and after your death, they can then settle your estate without going through the entire probate process and without hiring attorneys.

Although Henry Abts died in 2010, his goal of educating and helping fellow Americans continues in the form of the strictly legal documents company that works at the directions of knowledgeable and experienced estate-planning attorneys. Affiliated attorneys obtain Revocable Living Trust documents from the company that Henry Abts established. To date, that company has finalized over 70,000 trusts.

Detailed and comprehensive, their trust documents have been developed through over 40 years of hands-on improvement by hundreds of attorneys throughout the United States resulting in thousands of satisfied clients. They are drafted to ensure accuracy with current state and federal laws, and are updated as changes occur. Those affiliated attorneys are an honor to the American legal profession. We are proud to work with this group.

AFTER DOING YOUR OWN RESEARCH, IF YOU HAVE MADE THE DECISION TO OBTAIN A REVOCABLE LIVING TRUST TOGETHER WITH THE FULL COMPLEMENT OF STATE-SPECIFIC ANCILLIARY DOCUMENTS, FOR YOURSELF AND YOUR FAMILY:

If you reside in Florida: Call (941) 545-3600 - You might want to replace an existing written Last Will and Testament to avoid an inevitable probate, especially if there are significant assets involved. If you have an existing RLT, you might want to have it reviewed. Get information concerning retaining a Florida-licensed affiliated estate-planning attorney including the services and fees involved. If you are a licensed Florida attorney interested in broadening your practice and desirous of ethically servicing additional clients, give me a call.

If you reside in a state other than Florida: Call (800) 998-2523 and leave your name, your state, and city or town, along with the best phone number at which to contact you. Nationally, over 150 estate-planning attorneys are actively working with the group. We will do our best to locate those licensed in your state and provide you their contact information at no charge or obligation. The attorney's fee for a Revocable Living Trust may be somewhat greater in the states of South Carolina, Illinois, and Iowa. Those states require an attorney to be physically present at the time that Revocable Living Trust documents are executed (signed by the affiliated attorney's clients and notarized).