Legal Question in Wills and Trusts in Indiana

Re: Info on Probate, Trusts, Wills & Estates that best suit my needs.

"Probate" is the legal process of administering a decedent's property. "Estate" means the decedent's property, everything in which he or she can claim an interest. A "probate estate" will be administered by an executor or other personal representative, under court supervision. "Trust" is an estate planning device, where the assets placed in trust are administered by a trustee. "Will" is an estate planning device where the assets are administered by the executor. No one can think about estate planning without contemplating their own death. So the first obstacle is a natural tendency to procrastinate. Your parents should confer with an attorney who knows about estate planning, especially tax avoidance strategy. As far as the tax authorities are concerned, there is basically no difference between a will (which goes through probate court as the guiding instrument in the decedent's estate) and a trust (which may or may not go through the probate estate.) An intervivos revocable trust ("living trust") usually provides for the disposition of assets without probate court's involvement. But all transfers based on the death of a person or the gift of a person are subject to federal estate tax and Indiana inheritance tax. If the total amount is less than the two million dollar exemption, then no tax will be due. The exemption amount, after the latest change to the tax code, is very unstable; it changes often (increases), but in a few years, it dissappears. If the land involved is a family farm, and someone in the family will continue to work it, there are other liberal exemptions available. Sorry, this is so general, but your parents need to decide to face their mortality and go see someone. It's not possible to provide good advice over the internet on this subject. Of course, it is possible for people to die, and make neither a will nor a trust. In that event, their property will be administered through probate court and will be distributed by the provisions of state law. In Indiana, for example, your parent's three children would receive one-third of all the assets (after debts and expenses of administration have been paid.) In your case, your husband will get everything his name is on, plus a spousal allowance of about twenty-five thousand, plus half of your estate. The rest will be divided equally among your children. If you know what you're doing, you don't need an attorney. But based on your question, attorney fees would be a very wise investment. A trust should be less expensive to administer than a probate estate, but in either case COUNSEL MUST BE PAID. Family cooperation greatly reduces expenses. Good luck.