How can I best set up my estate?

Over the next few days, I will be answering questions posed by readers.

The first question I received was:

"How can I best set up my estate for ease of administration for my sons and grandchildren? I live comfortably on my investments and retirement income. My sons are grown and only one of my grandchildren is under the age of 18. While my permanent residence is in Pennsylvania, I own real estate New Jersey and North Carolina. How can I best set up my estate for ease of administration for my sons and grandchildren?"

In response to the question:
There are several ways to set up an estate for ease of administration. In your case a funded Revocable Living Trust would be very beneficial. There are many reasons to consider a Revocable Living Trust, one of which is when there is ancillary real estate.

The use of a Will when you own real estate located in more than one state requires the filing of additional probate documents with each of the local probate courts. In your case, this would be both New Jersey and North Carolina. Local counsel usually must be retained in each of those additional jurisdictions. If the additional real estate is held in a Revocable Living Trust, however, the costs associated with these ancillary estate administrations may be reduced or avoided altogether.

It would also be wise in your situation to provide for a trust for your younger grandchild and let your son, the child’s father, serve as the Trustee. You are not required to appoint a corporate trustee. You should name someone that you trust to follow through with the specific instructions provided in your Revocable Living Trust.

Provide your comments or send a question through my website: http://www.ythlaw.com/