Page 1 of 5 123 ... LastLast
Results 1 to 10 of 48

Thread: Trusts -- do you really need to have one?

  1. #1
    Senior Member
    Join Date
    Dec 2010
    Posts
    1,744

    Trusts -- do you really need to have one?

    I researched this a few years back and determined it was unnecessary for our situation. We have only one child and can put all financials into either Paid on Death (POD) or Transfer on Death (TOD) with our child as beneficiary. Our home title can be transferred on death too to avoid probate. The only thing that cannot are the vehicles (some states allow vehicles to be transferred upon death too). A will would handle the transfer of vehicles and indicate child could pay bills and receive all assets (including digital). End of life or funeral arrangements could be spelled out.

    Plan on taking all to an attorney who will check to see that everything is in order.

    Wondering if I am missing something? I continually talk to people who are doing trusts. I think if there is only one beneficiary it is a waste?????

  2. #2
    Senior Member
    Join Date
    Dec 2013
    Location
    Nevada
    Posts
    5,334
    WE don't feel a trust is necessary and between us we have 5 kids. However, our estate is very modest and if we live long enough there will not be much left except for the house unless we decide to sell at some point and move into an apartment or condo.

  3. #3
    Senior Member iris lilies's Avatar
    Join Date
    Mar 2013
    Posts
    12,923
    Quote Originally Posted by frugal-one View Post
    I researched this a few years back and determined it was unnecessary for our situation. We have only one child and can put all financials into either Paid on Death (POD) or Transfer on Death (TOD) with our child as beneficiary. Our home title can be transferred on death too to avoid probate. The only thing that cannot are the vehicles (some states allow vehicles to be transferred upon death too). A will would handle the transfer of vehicles and indicate child could pay bills and receive all assets (including digital). End of life or funeral arrangements could be spelled out.

    Plan on taking all to an attorney who will check to see that everything is in order.

    Wondering if I am missing something? I continually talk to people who are doing trusts. I think if there is only one beneficiary it is a waste?????
    We have a trust. in my state that is the latest fashion.

    Our assets will be divided amoung ten people and entities. I want to cash it all out and distribute the cash to these entities. A trust was the cleanest vehicle for that scenario.

    I am glad you will talk with an attorney because he will have ideas for you to think about, contingncies that you may not have thought about. You can also check your assumptions with an attorney.
    Last edited by iris lilies; 1-16-18 at 7:44pm.

  4. #4
    Senior Member
    Join Date
    Dec 2013
    Location
    Nevada
    Posts
    5,334
    IL: you seem reluctant at times to spend $ on things that make sense like a new roof. You will be leaving your $ to 10 people that will have no trouble spending it for you. It seems to me that you are having difficulty leaving behind the savings muscle. I am not saying you should blow $ but really it seems like this may be a issue for you.

  5. #5
    Senior Member
    Join Date
    Dec 2010
    Posts
    1,744
    Quote Originally Posted by iris lilies View Post
    We have a trust. in my state that is the latest fashion.

    Our assets will be divided amoung ten people and entities. I want to cash it all out and distribute the cash to these entities. A trust wad the cleanest vehicle for that scenario.

    I am glad you will talk with an attorney because he will have ideas for you to think about, contingncies that you may not have thought about. You can also check your assumptions with an attorney.
    I have already talked/interviewed a few attorneys. One, when giving advice, I asked why would I do that when this would work.... actually sputtered. He wanted to charge over $1,000 for something that obviously was not needed.

    Guess I don't understand what is fashionable has to do with a trust? The answer should be as you indicated that it was the best for your scenario!!

  6. #6
    Senior Member iris lilies's Avatar
    Join Date
    Mar 2013
    Posts
    12,923
    Quote Originally Posted by Teacher Terry View Post
    IL: you seem reluctant at times to spend $ on things that make sense like a new roof. You will be leaving your $ to 10 people that will have no trouble spending it for you. It seems to me that you are having difficulty leaving behind the savings muscle. I am not saying you should blow $ but really it seems like this may be a issue for you.
    Not fixing the roof has little to do with money. Oh my IF ONLY it were the money. I would write a check today for up to $50,000 to fix the roof were it entirely my roof.

    But this will make you happy: After 30 years, we are buying new kitchen countertops. Today we went shopping and
    I think we will pull the trigger tomorrow. I am spending $6,000 to get an upgraded version of what I have now, plain jane light grey neutral countertops, but in quartz.

    I loved quartzite but it was twice as expensive so at $12,000 that was too rich for us, even in this Trump economy.

    You are dead wrong about my wish to leave money behnd. I subscribe to the Die Broke philosophy and plan to spend as much as is reasonable while still keeping money for my old age. It is likely we will revamp our will in ten years and name only one or two entities as recipients because we will have less money. Because we spent it!

    This will and trust in effect today covers our unexpected, sudden death and it is appropriate for right now.

  7. #7
    Senior Member iris lilies's Avatar
    Join Date
    Mar 2013
    Posts
    12,923
    Quote Originally Posted by frugal-one View Post
    I have already talked/interviewed a few attorneys. One, when giving advice, I asked why would I do that when this would work.... actually sputtered. He wanted to charge over $1,000 for something that obviously was not needed.

    Guess I don't understand what is fashionable has to do with a trust? The answer should be as you indicated that it was the best for your scenario!!
    A trust is the best vehicle for us. It is good for many others. If it isnt necessary for you, so be it.

    Our attorney actually set up a trust dor our recipients to cover contingincies that are unlikely but possible. That isnt something I especially care about but if it were my child in that situation, I would be more interested. The trust holds money for the recipient and protects it should they be at the wrong end of a lawsuit.

    The preparation of our trust and will cost well over $1,000.

  8. #8
    Senior Member
    Join Date
    Dec 2013
    Location
    Nevada
    Posts
    5,334
    Glad that you have a plan to spend it! See what happens when we make assumptions about people)

  9. #9
    Senior Member bae's Avatar
    Join Date
    Jan 2011
    Location
    Offshore
    Posts
    7,194
    My mother-in-law and father-in-law have both passed away during the last 2 years. Each had a trust set up.

    This has made things *so much easier* for me in dealing with their estates. Dozens of pesky trips/phone calls/arguments to deal with the business of shutting down someone's financial life are so much simpler.

  10. #10
    Senior Member iris lilies's Avatar
    Join Date
    Mar 2013
    Posts
    12,923
    Quote Originally Posted by Teacher Terry View Post
    Glad that you have a plan to spend it! See what happens when we make assumptions about people)
    The business of a changing will is interesting. Both attornies we worked with strongly suggested we explain to our heirs who we have named and why. See, we dont have children and we have what some would consider a nice pot of money and I guess some people would have their nose out of joint to not be on the receiving end. Or? They said this conversation staves off challenges.

    But Nope, I am not doing that because our list of heirs will change, I can almost guarantee it. I dont want to dangle the idea that “you are in my will” only to remove that person later. I have one particular person in mind for whom this whole issue would be a problem in our relationship.

    I was extremely perturbed at the Edward Jones company because they wanted social security numbers for our heirs and I did not want to ask these people for their SS number. I considered yanking our account because of that. The other brokers didnt require it.

    Oh I forgot, our attoney also figured tax advantages so that is another reason to use an attorney who specializes in wills and trusts and elder law. But frankly, I dont much care about tax avoidance stratgies for anything left upon my death.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •