Comments on: Michael Jackson’s Estate Teaches You One Great Lesson http://wealthpilgrim.com/2009/07/michael-jacksons-estate-teaches-you-one-great-lesson/ WealthPilgrim.com Thu, 11 Mar 2010 05:33:11 -0800 http://wordpress.org/?v=abc hourly 1 By: Carnival of Personal Finance: New Zealand Edition! | Man Vs. Debt http://wealthpilgrim.com/2009/07/michael-jacksons-estate-teaches-you-one-great-lesson/comment-page-1/#comment-1192 Carnival of Personal Finance: New Zealand Edition! | Man Vs. Debt Mon, 13 Jul 2009 08:32:02 +0000 242850491#comment-1192 [...] Wealth Pilgrim presents Michael Jackson’s Estate Teaches You One Great Lesson. [...] [...] Wealth Pilgrim presents Michael Jackson’s Estate Teaches You One Great Lesson. [...]

]]> By: Kirk Kinder http://wealthpilgrim.com/2009/07/michael-jacksons-estate-teaches-you-one-great-lesson/comment-page-1/#comment-1173 Kirk Kinder Wed, 08 Jul 2009 18:31:28 +0000 242850491#comment-1173 @ Chuck Winter: you won't pass your debts onto your children by setting up a trust. In fact, you can't ensure your children get your assets and avoid your debts. Once you die, there are numerous steps that must be followed to close the estate. One of the steps is to marshall the assets and debts. If you have more debt than assets, then the assets will need to be sold to pay the debts. This holds true even if you set up a trust. So, if reports that Michael Jackson had massive debts are true, then his heirs won't get his trust assets until his debts are settled. But, if his debts are greater than his assets, then the heirs are not responsible for the shortfall. If you are upside down, meaning more debt than assets, then there isn't a big advantage of creating a trust, rather than using a will. You do get more privacy with the trust, but that isn't a big issue if you are loaded with debt. A legal will is probably the best bet in that situation. Just make sure there are some liquid assets to take care of your funeral and other immediate costs. @ Chuck Winter: you won’t pass your debts onto your children by setting up a trust. In fact, you can’t ensure your children get your assets and avoid your debts.

Once you die, there are numerous steps that must be followed to close the estate. One of the steps is to marshall the assets and debts. If you have more debt than assets, then the assets will need to be sold to pay the debts. This holds true even if you set up a trust. So, if reports that Michael Jackson had massive debts are true, then his heirs won’t get his trust assets until his debts are settled. But, if his debts are greater than his assets, then the heirs are not responsible for the shortfall.

If you are upside down, meaning more debt than assets, then there isn’t a big advantage of creating a trust, rather than using a will. You do get more privacy with the trust, but that isn’t a big issue if you are loaded with debt. A legal will is probably the best bet in that situation. Just make sure there are some liquid assets to take care of your funeral and other immediate costs.

]]> By: chuck wintner http://wealthpilgrim.com/2009/07/michael-jacksons-estate-teaches-you-one-great-lesson/comment-page-1/#comment-1167 chuck wintner Tue, 07 Jul 2009 22:56:12 +0000 242850491#comment-1167 If you create a trust for your children, don't you also pass on your debts as well as your assets? And if one is "upside down" right now, wouldn't creating a trust be the wrong thing to do? If you create a trust for your children, don’t you also pass on your debts as well as your assets? And if one is “upside down” right now, wouldn’t creating a trust be the wrong thing to do?

]]> By: Shirley Docken http://wealthpilgrim.com/2009/07/michael-jacksons-estate-teaches-you-one-great-lesson/comment-page-1/#comment-1165 Shirley Docken Tue, 07 Jul 2009 16:08:23 +0000 242850491#comment-1165 Hi Neal.....This is very timely and excellent advice. Hi Neal…..This is very timely and excellent advice.

]]> By: sekishin http://wealthpilgrim.com/2009/07/michael-jacksons-estate-teaches-you-one-great-lesson/comment-page-1/#comment-1164 sekishin Tue, 07 Jul 2009 15:24:41 +0000 242850491#comment-1164 This is on my "to do" list but . . . facing the prospect of your own mortality keeps many of us away from this . . . This is on my “to do” list but . . . facing the prospect of your own mortality keeps many of us away from this . . .

]]> By: Gary Seidler http://wealthpilgrim.com/2009/07/michael-jacksons-estate-teaches-you-one-great-lesson/comment-page-1/#comment-1163 Gary Seidler Tue, 07 Jul 2009 15:00:42 +0000 242850491#comment-1163 Very helpful - a real service. Difference between Living Trust and Will has never been made clearer. l'm going to ACT NOW. Very helpful – a real service. Difference between Living Trust and Will has never been made clearer. l’m going to ACT NOW.

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