Steve and Jodie Aguilar have four basic estate planning options: 1) Do nothing; 2) Wills; 3) Joint tenancy; and 4) Revocable Trust (also known as a Living Trust). When the Aguilars sit down with an estate planning attorney, they will learn that Wills, by themselves, in New Mexico, do not avoid a probate proceeding. They…
In recent years, the cost of long-term nursing home care has skyrocketed. To explore the questions and choices that arise when a loved one needs long-term nursing home care, let’s use the example of Frank and Susan Yazzie. Mr. and Mrs. Yazzie have two children, David and Jennie. Frank Yazzie is 80 years old and…
For several weeks, the nation was riveted by the controversy surrounding the decision to pull Terri Schiavo’s feeding tube. Terri Schiavo’s husband and parents fought in the press and in the courts. Congressional leaders rushed through legislation in an attempt to prompt judicial action. Political commentators on the cable news networks had a field day.…
Joint tenancy is sometimes used as a tool to avoid probate in New Mexico. To explore the ramifications of joint tenancy as an estate planning device, let’s use the example of railroad paymaster, David Gallup and his wife Rita. Mr. and Mrs. Gallup have three children: Felix, John, and Annie. David and Rita Gallup have…
Probates are not the end of the world, but there are several reasons why they are best avoided. Wills do not avoid a probate. Revocable Living Trusts, when properly funded, do avoid probate. Forum for a Fight Probates are a lawsuit. Experience shows that fights are more common in probate proceedings than trust administrations. There…
For the past decade, the estate tax exemption has been in a state of flux and the final chapter has not yet been written. In 2002 the exemption was $1,000,000, but it has progressively grown to the point that exemption was expended to $5,000,000 for years 2011 and 2012. Currently, it still continues to grow.…