Will or Trust??

[ODB]

Any of you have experience with choosing a trust over a will? I know the general idea is a trust avoids probate (to an extent), but with an 18 yo kid, is it markedly wiser to go the trust route since almost everything asset-wise is already beneficiaried?

We’ve chatted to a lawyer , but wasn’t as helpful as I thought- he was like…it depends. We already have a will, but it’s needing updating. In the event we were
Both hit by a bus the trust manager would have to be out of state. If that makes a difference.

Gimme your experience good or bad.

 

[roadrunner]

Trust. Often, a Will is included also.

Use an attorney that specializes in business law and estate planning.

 

[Bill larson]

Trust.... keeps others away from your money...

 

[GSPHUNTER]

Trust along with will. Make sure to update them when your family situations change. a new child, finances improve. and so on.

 

[Rich M]

Any of you have experience with choosing a trust over a will?

Both hit by a bus the trust manager would have to be out of state. If that makes a difference.

The whole idea of the Trust is to eliminate probate - it takes up to 5 yrs to execute a will. A judge needs to sign off on the executor and supposedly, only then can they legally do stuff. My FiL died about 2.5 months ago. Supposed to open a bank account and put all funds in there, and get all the vehicle titles transferred into "Estate of" prior to sale. Nothing is designed to be streamlined. We filed the court papers 2+ months ago and waiting. Just want to get rid of the vehicles and such - none of the kids wants anything, so needs to be sold or donated or trashed. Waiting on the judge.

We just did a trust - everything that doesn't produce a liability goes into the trust. House does but not car or boat - you don't want the trust to be able to be sued or a car accident could wipe out your finances. Bank & retirement accounts, etc. are in. If we kick the bucket or are incapacitated, the executor will manage our estate and make whatever medical decisions for us.

The Trust includes what we'll call a will - describes what goes to who and such. Also have a medical thing - who makes the decisions for you if you can't.

Also - down here a will cost about 3% of the total estate value in atty fees. Other states may be diff. Supposedly, trust doesn't.

 

[7mm-08]

Trust with a "pour over" will is the way to go. I had firsthand experience with this situation following my Dad's passing five years ago. He had a trust, but failed to follow through (on his end) ensuring that all holdings with the exception of potential liabilities that Rich M defined went into the trust. Getting letters testamentary so you can act as the executor of the will was a herculean task that took a year. A trust is (in my humble opinion) by far the superior legal mechanism to handle an estate because it allows the trustee to manage the assets of the trust seamlessly from the date of death.

 

[ODB]

Brilliant fellas - thanks for your thoughts.

Curious who you named as trustees? Anyone use a “professional” service like a trust bank?

Part of our issue is that the list of potentials is very small. And none are local.

 

[Rich M]

Brilliant fellas - thanks for your thoughts.

Curious who you named as trustees? Anyone use a “professional” service like a trust bank?

Part of our issue is that the list of potentials is very small. And none are local.

Same thing here - we were trying to not give everything to wife's kids cause their old man is a mutli-millionaire (he did good with his business and is cut-throat - - the kids have serious trust funds but have to wait for them). Couldn't find anyone and went to my son-in-law, an atty - he agreed to be trustee and executor and about anything else we need.

We had 2 diff couples ask us to watch over their kids if they die (forget the term) and we said no both times. Love the kids but didn't feel right about it. Just saying it is okay for folks to say no if you ask em.

Your son is 18 - He'll be more mature in a couple of years and will be your best bet once he proves himself. My sister and I are on all my dad's stuff. Both in 50's established, etc. Neither have any issues that would provide temptation - same for my son in law, he's younger but has done very well for himself and is worth about 10x what we are.

Got a buddy in the hospital right now - minor surgery gone bad. His 30 yo kid is trying to sell his boat and the wife/stepmom is this resilient little rock in the current keeping the kid from cleaning his old man out while he is in hospital - yes, some kids turn out different.

FWIW - we paid about $4k during 2023 to establish the Trust and all associated documents - they send you home with a laundry list of questions and you work thru the questions - asking questions as you go. we went to Atty office 2 or 3 times. The hardest one is who is gonna be "the one". Then when you sign this stuff and see that you can get cleaned out in a blink by that person if ever incapacitated it catches in yer throat - fer real. At least that's how ours is written.

 

[ODB]

Same thing here - we were trying to not give everything to wife's kids cause their old man is a mutli-millionaire (he did good with his business and is cut-throat - - the kids have serious trust funds but have to wait for them). Couldn't find anyone and went to my son-in-law, an atty - he agreed to be trustee and executor and about anything else we need.

We had 2 diff couples ask us to watch over their kids if they die (forget the term) and we said no both times. Love the kids but didn't feel right about it. Just saying it is okay for folks to say no if you ask em.

Your son is 18 - He'll be more mature in a couple of years and will be your best bet once he proves himself. My sister and I are on all my dad's stuff. Both in 50's established, etc. Neither have any issues that would provide temptation - same for my son in law, he's younger but has done very well for himself and is worth about 10x what we are.

Got a buddy in the hospital right now - minor surgery gone bad. His 30 yo kid is trying to sell his boat and the wife/stepmom is this resilient little rock in the current keeping the kid from cleaning his old man out while he is in hospital - yes, some kids turn out different.

FWIW - we paid about $4k during 2023 to establish the Trust and all associated documents - they send you home with a laundry list of questions and you work thru the questions - asking questions as you go. we went to Atty office 2 or 3 times. The hardest one is who is gonna be "the one". Then when you sign this stuff and see that you can get cleaned out in a blink by that person if ever incapacitated it catches in yer throat - fer real. At least that's how ours is written.

Man, thanks so much. Really appreciate the perspective - great things to think about.

 

[49ereric]

Any of you have experience with choosing a trust over a will? I know the general idea is a trust avoids probate (to an extent), but with an 18 yo kid, is it markedly wiser to go the trust route since almost everything asset-wise is already beneficiaried?

We’ve chatted to a lawyer , but wasn’t as helpful as I thought- he was like…it depends. We already have a will, but it’s needing updating. In the event we were
Both hit by a bus the trust manager would have to be out of state. If that makes a difference.

Gimme your experience good or bad.

Tax changes coming on irrevocable trust.

 

[SDHNTR]

Both. If there’s any possibility of a family feud when after you’re gone, nominating a third-party professional Trustee as successor is a very good idea.

 

[SDHNTR]

Tax changes coming on irrevocable trust.

True. And estate tax exemption amounts soon to get whacked big time.

 

[GunsAreFun]

Get an attorney. It’s not that expensive and your company EAP may provide one for free or at a discount.

We have a will and a trust. I honestly can’t remember why we needed both, but it made sense at the time.

 

[elkliver]

You have to have both. A trust without a Will doesn't do you any good unless every single asset is in the Trust name. In most cases, the attorney will write a Pourover Will in which the Trust is the Devisee. Then you have options in the event someone forgot to deed one of the properties into the Trust. If you don't have much for assets, then a Trust isn't likley worth it and there are other ways to handle estate planning. (Transfer n Death Deeds, Payment on death bank accounts, etc

 

[ODB]

You have to have both. A trust without a Will doesn't do you any good unless every single asset is in the Trust name. In most cases, the attorney will write a Pourover Will in which the Trust is the Devisee. Then you have options in the event someone forgot to deed one of the properties into the Trust. If you don't have much for assets, then a Trust isn't likley worth it and there are other ways to handle estate planning. (Transfer n Death Deeds, Payment on death bank accounts, etc

A lot of our intent here is simplification; to make what might be a very tough situation less so. Our daughter is an only kid and as I mentioned, we don’t have a great pool of people to use to manage things so, trying to look forward for her sake.

 

[Marble]

In some states, a Will still gets put into probate. A trust does not. There is an upfront cost for a trust, but it's substantially less than what you would pay an attorney in probate.

Sent from my SM-S918U using Tapatalk

 

[49ereric]

True. And estate tax exemption amounts soon to get whacked big time.

gets knocked back to 7+mil ish when the tax cuts phase out

 

[SDHNTR]

gets knocked back to 7+mil ish when the tax cuts phase out

Yep, well aware

 

[elkliver]

A lot of our intent here is simplification; to make what might be a very tough situation less so. Our daughter is an only kid and as I mentioned, we don’t have a great pool of people to use to manage things so, trying to look forward for her sake.

With those goals, most definitely set up a Trust, with Successor Trustees identified. Then you can decide the terms of distribution. And like i said, also have a Will prepared. I cant tell you how may problems i have seen where someone thought the assets were in a Trust only to find out they weren't.

 

[fngTony]

Find another lawyer and one that specializes in this. So many things they are aware of that we are not. Also they give you a non biased, non emotional perspective which you need, trust me you do.