Trusts -- do you really need to have one?

[flowerseverywhere]

My dad passed this last Sunday from this dreadful flu. I am so glad my parents put everything into a trust and made me trustee. My mom had dementia and after she died 6 years ago it became apparent that my dad did too. I was able to do a lot these past 6 years to liquidate the assets. In the past few days it has been a blessing over and over to have everything in place and easy to deal with.

So so very sorry. Your post should remind everyone to have their affairs in order.

[mamalatte]

To Posters who are talking about using a trust to simplify things -- you mean you already put all your assets in a trust NOW, while you are alive, right?

Because, if your Will instructs that certain assets go into a Trust when you die, that does not "avoid probate," correct?

[flowerseverywhere]

That was my main goal—make it as easy as possible for those left behind. If our assets are maximized is a purely secondary concern.

I believe changes in my state and probably others over the past dozen years allow a revocable trust to be an easy thing to set up, maintain, and carry out. I wouldnt be surprised if one could do it without an attorney, but thats not something I would attempt without professional advice.

A very good thing to do as well if you don’t want people squabbling about stupid things. Not telling anyone is great too. It will be a nice surprise for somebody, no matter what the size. We have kids so they are co owners of our safe deposit box , know our attorney and have copies of the wills and medical directives. No drama, no angst.

[frugal-one]

My dad passed this last Sunday from this dreadful flu. I am so glad my parents put everything into a trust and made me trustee. My mom had dementia and after she died 6 years ago it became apparent that my dad did too. I was able to do a lot these past 6 years to liquidate the assets. In the past few days it has been a blessing over and over to have everything in place and easy to deal with.

Very sorry to hear of your loss!!!

This is a good point and a question to ask .... everything transfers at death. So if a person is mentally incapacitated would financial power of attorney allow the person to liquidate assets???? hmmm

[iris lilies]

To Posters who are talking about using a trust to simplify things -- you mean you already put all your assets in a trust NOW, while you are alive, right?

....

Not necessarily ALL. It depends on the type of financial instrument and property. For instance:


We have changed ownership to the Trust for some financial instruments.

We have Transfer on Death beneficiary deeds for real estate.—not really, this is wrong 1/19/2018.

We have TOD naming the Trust for our vehicles.

We have named each other as primary beneficiaries, and all heirs as secondary beneficiaries for other financial instruments.

We have a Will for everythng that cannot be transfered with a title such as household goods.

One size does not fit all.

I dont know the answer to your other question.

edited to add: i was wrong about our real estate. it is owned by our Trust.

[Simplemind]

Power of attorney only goes so far. Even though I was a trustee I had to have two doctors letters saying that my dad was no longer able to make financial decisions. Those letters were used for all real estate transactions. Power of Attorney is only good while they are alive. Once dead, everything better be in order. I just found a life insurance policy that my dad took out in '46. He didn't marry my mom until '55. They are pulling up the paperwork but if he did not change the beneficiary to my mom when he married her they told me the assets would go to the state and I would have to scoop it up from Oregon Department of State Lands Unclaimed Property division. Make sure your ducks and beneficiaries are in a row. That one got by me and I work with people on after death planning.

[catherine]

Power of attorney only goes so far. Even though I was a trustee I had to have two doctors letters saying that my dad was no longer able to make financial decisions. Those letters were used for all real estate transactions. Power of Attorney is only good while they are alive. Once dead, everything better be in order. I just found a life insurance policy that my dad took out in '46. He didn't marry my mom until '55. They are pulling up the paperwork but if he did not change the beneficiary to my mom when he married her they told me the assets would go to the state and I would have to scoop it up from Oregon Department of State Lands Unclaimed Property division. Make sure your ducks and beneficiaries are in a row. That one got by me and I work with people on after death planning.

One of the people on my neighborhood FB group was just asking about Power of Attorney, and apparently there is a difference between Power of Attorney and Durable Power of Attorney. According to one of my neighbors: "Durable refers to when person is incapacitated..gives full power instead of limited power"

Sorry if this has already been brought up--haven't read many of the previous posts.

[iris lilies]

While I am sure every one here is too smart to make legally enforeable decisions based on info from this forum, I woould like to remind all that state laws differ. What is true in my state may not be true in your state.

[Teacher Terry]

When my MIL died with a will we published for creditors for 2 weeks and then a piece of cake to dispose of her stuff. Same with my Mom in another state. Unless you have significant assets a trust doesn't make sense.

[iris lilies]

When my MIL died with a will we published for creditors for 2 weeks and then a piece of cake to dispose of her stuff. Same with my Mom in another state. Unless you have significant assets a trust doesn't make sense.

I dont th Nk that is true necessarily, but whatever. I am all for making it easy.