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.
Typically the Will will leave everything to the trust. You need both Along with a medical directive.
The advantage to a trust over a will is many. Without a will your assets will go into probate court, which incurs, hefty fees, and taxes to the state. I’ve heard cases of up to 40% of the assets….a trust and a will avoids this.
There is one more factor that it’s important. You understand how these assets are treated tax wise. Typically the attorney will not give you tax advice. You also need to consult a CPA or have an idea how these assets are treated.
An example would be your home; currently whomever gets the home after you die gets it at the current market value, they call it stepped up basis. Current limit on this stepped up basis is $13.61M for single, $25.84M for married couples.
Trusts are pretty much boiler plate stuff if you are the avg Guy. I would look at the checklist at inexpensive outfits that do this first Before going the attorney route. Assuming you understand tax consequences and such, that might be a better option. Just make sure real estate is retitled AND Recorded Whether you use an atty or not.
Trustee; Be advised, this person/ entity has a lot of power over your assets, can draw a salary and fees for holding that position. The wrong bank or atty will milk this for all its worth. Assuming you have little kids, this takes some thought into who gets them….when and how your assets will be allocated- for example; If you give little kids the home, what about payments, taxes, maintenance until they are old enough?
Lastly, you can restrict fees allowable to the trustee…and put stipulations And/ or milestones on payments to them and your kids. These stipulations can help cause less infighting between relatives in the future.
Its something only you can think through….whether you use an atty or not.
Edited mistaken dictation