I got this idea from Mark, but found some articles about it. None of this is my words, but the value to add is immense whether its a typical FE client or someone else you are helping out by educating them on their options. Some agents prefer not to get involved or to offer such a type of value aside from helping them take out a policy. To each their own, but I thought for people who look for prospecting ideas or want to add a little more value to their deals, prospecting, or client service, this is perhaps one simple idea, and it all revolves around one word
PROBATE.
Probate, to prove, untitled assets that have no beneficiary or joint tenancy will go to probate, a state's way through intestancy laws to rightfully distribute property, left over valuables and other items of interest.
Probate can cost 3-7% and even upwards of 10% of the TOTAL value of the estate
.
So if someone passes that has a house, vehicle, some valuables in a house, maybe some cds in the bank, not to mention their own accounts etc.
For example, owning $20,000 worth of real estate in California and Tennessee throws you into the Probate process, and most states have similar laws. Furthermore, the Probate process must remain open for a minimum of 6 months and can run as long as 3 years. Many contested estates have remained in Probate for decades while Probate expenses reduced fortunes to a pittance. The only people who won in those cases were the Probate attorneys who were being paid from the estate assets.
http://www.heritagelivingtrust.com/probateschedules.htm
And here is a link to your specific state's codes that mention the variations in estate/probate laws.
State Laws: Estates & Probate - FindLaw
Ways to dodge probate in an article to give to your prospects,
http://www.advisornetinsurance.com/files/annuity-ways-to-avoid-probate.pdf or Ways to Avoid Probate, Estate Planning Article - Inc. Article | Inc.com
One viable method is to have a last will and testament, for larger estates a revocable trust is recommended barring of course looking at the amount of estate taxes one will be liable for, which excludes the range of this thread...
FYI I was shocked to learn that in Ohio if you have over $20,000 worth of assets, that without proper planning, you could be subject to probate.
PROBATE.
Probate, to prove, untitled assets that have no beneficiary or joint tenancy will go to probate, a state's way through intestancy laws to rightfully distribute property, left over valuables and other items of interest.
Probate can cost 3-7% and even upwards of 10% of the TOTAL value of the estate
.
So if someone passes that has a house, vehicle, some valuables in a house, maybe some cds in the bank, not to mention their own accounts etc.
For example, owning $20,000 worth of real estate in California and Tennessee throws you into the Probate process, and most states have similar laws. Furthermore, the Probate process must remain open for a minimum of 6 months and can run as long as 3 years. Many contested estates have remained in Probate for decades while Probate expenses reduced fortunes to a pittance. The only people who won in those cases were the Probate attorneys who were being paid from the estate assets.
- Probate involves a number of potential costs -- appraisal fees, executor's fees, court filing fees, surety bond fees, legal fees and accountancy fees. These expenses are paid out of the estate, then the remainder of the estate is distributed to the beneficiaries.
- Who at a time where the family atmosphere is fragile from a death would want to put their family through such a process? In addition to grieving for their lost family member they either have to pay money for family valuables, or sell them to meet the costs of probate. This could be very traumatic.
http://www.heritagelivingtrust.com/probateschedules.htm
And here is a link to your specific state's codes that mention the variations in estate/probate laws.
State Laws: Estates & Probate - FindLaw
Ways to dodge probate in an article to give to your prospects,
http://www.advisornetinsurance.com/files/annuity-ways-to-avoid-probate.pdf or Ways to Avoid Probate, Estate Planning Article - Inc. Article | Inc.com
One viable method is to have a last will and testament, for larger estates a revocable trust is recommended barring of course looking at the amount of estate taxes one will be liable for, which excludes the range of this thread...
FYI I was shocked to learn that in Ohio if you have over $20,000 worth of assets, that without proper planning, you could be subject to probate.
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