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Old 01-29-2016, 08:33 AM
 
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Scenario: Husband and I early 60's in good health. Comfortable financially. Three grown children (all college educated professionals...and just good kids to boot!).

Is it worth it to spend the extra $3000 to have a revocable trust? My idea is that I want to protect my assets in case of my death and my husband remarries (which he swears he won't)

My husband and I worked hard, invested well, and have been pretty frugal most of our lives. I want to make sure that whatever I don't spend in my life time, that my kids will enjoy not some Bimbo or Bambi that comes along. (sorry if I offended anyone)....

Plus this avoids everything going through probate and makes it easier for the kids.

Your thoughts?

Thanks!
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Old 01-29-2016, 08:56 AM
 
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you cannot protect assets with a revocable trust . only irrevocable trusts can do what you want .

a revocable trust only keeps what you have from having to go through probate .

you can't have access to the funds yet keep your spouse from them if that is your intention .
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Old 01-29-2016, 09:03 AM
 
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No, my intent is that should I die first, and if he remarries and then passes away, the next wife won't have access to our money, that it will go to the kids. If we have a regular will and I die first, everything would go to him. If he "forgets" to get a new will to leave everything to the kids, or if he decides to get a new will and leave everything to #2, then everything I've worked and saved for will go to the "new wife"....
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Old 01-29-2016, 09:14 AM
 
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if the assets are combined assets you cannot just limit a spouse to it . by law in many states there are protections and restrictions .

for what you want to do on your death you need to take x-amount of money and put it in an irrevocable trust for the kids . anything revocable can be changed by your husband .

so the question is why bother . why not beneficiary over to the kids what ever you are legally allowed to . in many states by law a spouse gets 1/2 or 1/3 of the assets in a marriage but after that you are free to give it away.

irrevocable trust are used so a surviving spouse can draw off the gains to live plus 5% of principal a year but can't get access to the rest without certain reasons .

your husband can change anything that is revocable after your death as your spouse . .

i would discuss this with an estate attorney . this can be a minefield if not done right .
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Old 01-29-2016, 09:23 AM
 
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We are using an estate attorny, but haven't signed on the dotted line. He says that using a Revocable Trust is like putting your assets into a bucket and then the bucket is protected. Can he be wrong?
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Old 01-29-2016, 09:28 AM
 
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Ask him if he or someone related (business wise) is going to be paid to manage that trust...
He might be pushing for it because he gets a cut of it. Kind of like insurance salesmen
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Old 01-29-2016, 09:33 AM
 
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He said that we would manage it.
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Old 01-29-2016, 09:35 AM
 
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"we"?

um... this is for "after" you die right? that would leave husband to manage it, and as such, he could "revoke" the trust if he decided, hence revocable. If you and husband already agreed on him not doing that, he could just write in his will that the money goes to children as well.

It isn't like "all" the money is split if he gets remarried, just whatever they earn/accumulate together. Money/assets earned prior to marriage isn't usually up for grabs by new spouse. http://info.legalzoom.com/spouses-ri...age-26405.html

Again, both depends on husband's actions
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Old 01-29-2016, 09:35 AM
 
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Quote:
Originally Posted by suzsaz View Post
We are using an estate attorny, but haven't signed on the dotted line. He says that using a Revocable Trust is like putting your assets into a bucket and then the bucket is protected. Can he be wrong?
yes he is . your spouse needs power of attorney if anything happens to you . he is as free to change a revocable trust as you are . i don't know your state laws but i would be surprised if it was anything different .
if it is money from the marriage (marital assets) you can't restrict him from his own money so to speak . is this money you inherited ? you can agree to split things in half and put it in a revocable trust but then he has access to his half and no access to your half . .

did you want him not to have access to your half ?

if you are not going to use irrevocable trusts then each of you have to be smart enough to look out for your kids .

my wife and i know if anything happens to one of us and we remarry at this late stage . our assets go right in a irrevocable trust so when i remarry , my 22 year old wife can't change things and then change her will to rule out our kids .

there can be tax issues too .

http://jpfirm.com/2011/test-post3/

good article on 2nd marriages .
http://blog.estateplanning123.com/20...marriages.html

Last edited by mathjak107; 01-29-2016 at 09:46 AM..
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Old 01-29-2016, 03:22 PM
 
Location: Florida
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Since you want to protect your assets a trust is a very good way to do this. If you just wanted to avoid probate the answer would be different but you have a valid goal that a trust will meet.
Be sure your children can change the trustee after you die if the trustee is not doing a good job. Also consider if the children need asset protection from creditors as you might want to help them protect what they inherit.
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