Ways to Help Clients Tie Up Loose Ends and Save Money!

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
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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.
Here is a state by state guide on probate. Not sure if its up to date, but allows for a good idea of what to expect.
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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unless you are an estate planning attorney, I wouldn't get into all that. life insurance and annuities are probate proof by default (and life insurance beneficiary arrangements trump wills, just so you know).

anything beyond that I just refer them to an estate atty.
 
Good advice JacobTN......best to leave that stuff to those who deal with it on a daily basis. It's fine to have some basic knowledge but if you're not an expert on the subject, let someone else be.
 
If someone can read this on a magazine or do tbis themselves on legalzoom, I see no harm using this to help you prospect or to add value. You simply point this out to them. There is a risk that could be closed using this.
I myself am subject to probate and didnt know it. How many people are. SOUND THE ALARMS!!
I respect your decisions to not want to use this, but i dont think this could hurt.
To each their own..
 
If someone can read this on a magazine or do tbis themselves on legalzoom, I see no harm using this to help you prospect or to add value. You simply point this out to them. There is a risk that could be closed using this.
I myself am subject to probate and didnt know it. How many people are. SOUND THE ALARMS!!
I respect your decisions to not want to use this, but i dont think this could hurt.
To each their own..

Please correct me if I am wrong, but every estate has to go through probate. Unless everything has been properly titled beforehand, and even then probate is needed. Probate also allows creditors to place a claim upon the estate for unsettled debts.
 
The problem with helping them is that you are getting yourself into a gray area. This could be construed as legal advice by the family, thus opening you op to a potential lawsuit if something goes bad with the planning. I think the best thing is to just educated the client on who they should see for this type of advice. Maybe even find an affordable attorney in your area that you could send business to.
 
The big issues with Probate is it's public and it could be expensive. If people have property in different state they may have to go through probate in each state. So of course people should consult with a professional who understands Estate Planning.

If anyone uses the Winflex software the AMO section has some basic information about Estate Planning.
 
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Please correct me if I am wrong, but every estate has to go through probate. Unless everything has been properly titled beforehand, and even then probate is needed. Probate also allows creditors to place a claim upon the estate for unsettled debts.

Probate is a state issue and varies from state to state. All estates do not have to be probated in Tennessee and even if probate is required certain property such as jointly held property with the right of survivorship does not pass through probate. Probate seems simple but can be very complicated and I would not dare even talk about it with a client and their family. Something goes wrong and they say, "Well, Mr. X said so and so." and the next thing you know, your posterior is in the sling for practicing law without a license. :no:
 
Thanks op for posting. I think it is funny that some people jump to conclusions. *sarcasm on* I should sue the op for opening up my mind to this information. Just because you make some one aware of an issue does not mean you are giving legal advice.

The world of forums would be in a whole heap of law suits if mentioning something = legal advice or telling someone what to do.

Ever have a friend give you a stock tip? Sue them
Next time someone shows you a piece of equipment at the gym, sue them. Unless they tell you to consult your physician first.

Friend suggests a diet because that's how they lost weight. Sue them. That is medical advice.
 
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