revocable trust vs. Marital Property Agreement

[SDHNTR]

Agreed. there are already some totally wrong comments here above.

We did a living trust for the many advantages. We can stipulate exactly how our estate gets divvied up and who is the executor controlling it- my daughter.

There are a few things worth considering on a trust;

A trust avoids probate in every state I know of. Probate takes a big chunk of the estate in taxes and legal fees.

These are a separate entity under the law- usually a good thing.

The Executor is the key decision, they have all of the power and can charge the estate big bucks for their time. I wouldn't use an attorney for the executor. I think My Bro in law made a big mistake; His kids don't get along when it comes to money and their current business; he made them Co- Executors. He is creating a bloody fight over his estate instead of harmony.

RE gets inherited at the accelerated basis when you pass- no tax on appreciation to the beneficiary. It's a good idea for the kids to get the RE appraised ASAP if they intend to keep it to lock in that new basis.

When there is big money involved, it can create problems, lawsuits, etc. Best to address potential problems ahead of time in the trust. An example would be any protest or lawsuit against the executor cuts the antagonist off at the knees.



In my case I gave my daughter a separate guide on the charities I want money going to. If it's in the trust, the entity is notified and they will have their lawyers monitoring the trust which will cause additional costs/red tape for the executor.

Sorta, kinda. Terminology is important here. You said a trust is a separate legal entity. It is important to differentiate between a revocable living trust and an irrevocable trust. A living trust offers no protection against taxes or liability. An irrevocable trust may, but complexities abound and once drafted and funded, it’s final. This is not something for a casual DIYer to tackle!

Also, the executor only administers the will. The successor trustee administers the trust. These can be the same person, but can also be different. Again, there are reasons for choosing certain individuals, fiduciaries, banks/brokerage firms, corporations, and various others for these roles. It doesn’t have to be a family member, and in many cases, probably should not be.

IMO, threads like this should not exist. The potential for misleading advice that has profound implications is far too significant. This is not a subject for internet advice or shortcuts. Anyone concerned about this topic needs only one statement of advice: consult a professional estate planning attorney!

 

[Beendare]

Sorta, kinda. Terminology is important here. You said a trust is a separate legal entity. It is important to differentiate between a revocable living trust and an irrevocable trust. A living trust offers no protection against taxes or liability. An irrevocable trust may, but complexities abound and once drafted and funded, it’s final. This is not something for a casual DIYer to tackle!

Also, the executor only administers the will. The successor trustee administers the trust. These can be the same person, but can also be different. Again, there are reasons for choosing certain individuals, fiduciaries, banks/brokerage firms, corporations, and various others for these roles. It doesn’t have to be a family member, and in many cases, probably should not be.

IMO, threads like this should not exist. The potential for misleading advice that has profound implications is far too significant. This is not a subject for internet advice or shortcuts. Anyone concerned about this topic needs only one statement of advice: consult a professional estate planning attorney!

Yeah...a quick and dirty answer to his questions leaves out a lot.

The point about the Executor and the Trustee being someone you trust is still key, IMO.

I've seen a case where a law firm trustee charged management fee of $60,000 a month to run a business in Trust totally milking it and that was only the tip of the iceberg.

 

[SDHNTR]

Yeah...a quick and dirty answer to his questions leaves out a lot.

The point about the Executor and the Trustee being someone you trust is still key, IMO.

I've seen a case where a law firm trustee charged management fee of $60,000 a month to run a business in Trust totally milking it and that was only the tip of the iceberg.

Yes, trustee fees can be a racket. Especially when billed by the hour. Any bona fide trust company will have a published schedule of fees that will be a percentage of the estate or a flat fee. And all should be communicated well in advance. That said, done right and with fees billed fairly, a corporate trustee can also be worth every penny!

Settling an estate can be a complex job that most family member trustees are often not prepared for. And it’s a recipe for family division and distress. Plan ahead and plan well.

 

[CorbLand]

If I can give one piece of advice, make sure that you are communicating with those who will inherit your stuff before you die. You don’t have to tell them everything but a general overview of your intent can really help.

As an example. My dad passed away before his mom did. When that happened, she changed everything that he was supposed to get to his kids, me and my two brothers.

My family is the “all of that should be a secret” type, which is odd for a family that has an average life expectancy in the late 40s but I digress. She never told us anything about that.

Well 4 years after she died, we found out how some of this was supposed to work and we are now working through getting what was/is rightfully ours.

It would have been a lot easier if my grandma had told us that we got our dads portion so when all of this started we could have made sure it went the way it was supposed to.

So again, you don’t need to divulge every little detail but simple explanations to everyone can help keep people honest and ensure people get what you intend.

No matter how good you think your family is and honest they will be…people do weird shit when it involves assets, ass and antlers.

 

[Lush342]

Keep it simple with a revocable living trust marital property agreement.

WI has no state inheritance or estate tax, and federal taxes only kick in way above most estates $15M per person in 2026. No big tax advantages from fancy trusts here.

A revocable trust avoids probate cleanly your joint assets go straight to kids survivor. Pair it with a marital property agreement WI specific hack to easily fund the trust on first death without probate. It's straightforward, flexible, and common for long married couples like you.

Skip irrevocable unless you have massive assets or special needs planning. Add the POAs and you're set.

 

[elkliver]

This is the wrong place to seek such advice. There are no uniform answers. Every single case is different. Seek professional counsel.

This! I deal with issues regularly where someone "Thought" they had it all lined out. The amount of mis-information available is astounding. The number one excuse I hear is "We didnt want to ask an attorney because they are expensive" Yes, they are but you get what you pay for. Second piece of advice... Do some research on attorney's and reviews of them.... there are a LOT of attorneys that are not competent. Call a CPA and a Title company for suggestions. Not a guarantee but those two industries see a lot of cases.

 

[fwafwow]

Almost every post in this thread has inaccuracies, omissions or statements that are subject to exceptions or nuances. The only posts I agree with are those that say to get professional advice, and in some of those posts, that’s the only suggestion with which I agree. FWIW.