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Old 04-23-2014, 11:18 AM
 
Location: SoCal desert
8,093 posts, read 13,242,460 times
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Quote:
Originally Posted by jasmom87 View Post
We have a client now who's parent died in a car accident. Because of her trust, the only probate asset will be the award somewhere down the road, but because of the trust language it will immediately be transferred to the trust to be distributed according to her wishes.

I see it everyday, and if you have never been through probate court, it is not cheap. Selling a house can be a nightmare, and even when everyone gets along, it is expensive.
Which is why I can't understand people who say "I don't need or want a trust." A trust makes it so easy for heirs.
My Mom died in January 2013. I interviewed real estate agents in March. I signed on the dotted line. The house sold and the check was in the Trust checking account July 1. I wrote the disbursement checks on July 2. The only irritation were the real estate agents
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Old 04-23-2014, 10:21 PM
 
Location: Southwest Washington State
21,933 posts, read 14,414,141 times
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We have everything is a trust. But this thread makes me remember that we need to visit a local attorney to update it, as it was drawn up in a different state.

I agree--if there is much of any estate, you should have a trust.
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Old 04-24-2014, 03:37 AM
 
71,763 posts, read 71,853,273 times
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not everyone needs a trust so i would disagree with that. if you live in a state like ours which do not use quick claim deeds on property you may need one or you want to put stiplulations on the money left you might need one. but a trust is really not needed in many situations.

there are many many types of trusts and they are used for many many different situations. from tax planning to medicaid planning , to putting stipulations on money passed trusts can be used.

there is a big difference between using a revokable trust vs an irrevocable one and the reason you want it.

the best advice is see a good estate attorney or elder care attorney to see which is right for you if any.

we found an irrevocable trust that we can activate if we want by choice was right for us. it is a called a disclaimer trust and we needed it to be able to use both our state's estate tax exemptions fully.

we did not need a trust to control the passing of our estate to the kids and grandkids at all , our wills and account beneficiary's did that just fine.

all we needed to do was spell out how things get distributed in our wills and that required no trust at all.

folks get confused because in states without quick claim deeds you really should put real property in a trust so your home avoids probate but if you have no home and rent you may not need one at all.

Last edited by mathjak107; 04-24-2014 at 04:00 AM..
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Old 04-24-2014, 06:23 AM
 
Location: Baltimore, MD
3,745 posts, read 4,222,137 times
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I don't understand all of this worrying about probate. Is it really expensive in other states or is it just rumor?

BTW, everyone should check the beneficiaries on their accounts. Not just the names of the beneficiaries - but the method of distribution, i.e. per stirpes or per capita. My father is going to be one upset dude when I tell him that the funds in his T Rowe Price accounts will be automatically distributed per capita. Back to the drawing board (as if there ever was a drawing board).
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Old 04-24-2014, 11:09 AM
 
Location: SoCal desert
8,093 posts, read 13,242,460 times
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Quote:
Originally Posted by lenora View Post
I don't understand all of this worrying about probate. Is it really expensive in other states or is it just rumor?
My S-i-L estimated it would have cost us around 30K in attorney fees. And a lot more time. And a lot of people's noses in our business.
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Old 04-24-2014, 04:56 PM
 
71,763 posts, read 71,853,273 times
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Quote:
Originally Posted by lenora View Post
I don't understand all of this worrying about probate. Is it really expensive in other states or is it just rumor?

BTW, everyone should check the beneficiaries on their accounts. Not just the names of the beneficiaries - but the method of distribution, i.e. per stirpes or per capita. My father is going to be one upset dude when I tell him that the funds in his T Rowe Price accounts will be automatically distributed per capita. Back to the drawing board (as if there ever was a drawing board).
it can not only run a percentage of the assets but it can take months. also like in our case if the examing judge sees a flaw it can open a whole expensive can of worms.
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Old 04-24-2014, 06:54 PM
 
Location: Baltimore, MD
3,745 posts, read 4,222,137 times
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Quote:
Originally Posted by Gandalara View Post
My S-i-L estimated it would have cost us around 30K in attorney fees. And a lot more time. And a lot of people's noses in our business.
Here are the facts in Maryland. https://www.msba.org/sec_comm/sectio...vingtrusts.asp
Readers should note that the authors are experts in their field, i.e., Attorney members of the Estate and Trust Section of the Maryland State Bar.

This is why I've never seriously considered establishing a Living Trust. (Obviously, if I had a medically fragile child I would consider a Special Needs Trust).
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Old 04-25-2014, 08:20 AM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 17,945,286 times
Reputation: 6717
Quote:
Originally Posted by lenora View Post
I don't understand all of this worrying about probate. Is it really expensive in other states or is it just rumor?

BTW, everyone should check the beneficiaries on their accounts. Not just the names of the beneficiaries - but the method of distribution, i.e. per stirpes or per capita. My father is going to be one upset dude when I tell him that the funds in his T Rowe Price accounts will be automatically distributed per capita. Back to the drawing board (as if there ever was a drawing board).
I don't understand the worrying about probate either. Or the infatuation with trusts (which can be very expensive to establish and administer). Here's the basic outline of probate in Florida:

Consumer Pamphlet: Probate In Florida

BTW - there is absolutely nothing wrong with "boilerplate". Most good estate attorneys spend lots of time making sure that the "boilerplate" language in their wills conforms to applicable/current law. The problem that is basically being discussed here isn't a will that doesn't conform with applicable/current law - but one that doesn't reflect the wishes of the person making the will. Especially when a will may be outdated as a result of changed circumstances. Of course - you can't always do what you want to do (like surviving spouses may be entitled to X% of the estate no matter what the dead spouse wanted). FWIW - most of the biggest screw-ups I read about occur when people remember to update wills - but forget to update things like beneficiary designations on their retirement accounts. Robyn
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Old 04-25-2014, 08:27 AM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 17,945,286 times
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Quote:
Originally Posted by mathjak107 View Post
it can not only run a percentage of the assets but it can take months. also like in our case if the examing judge sees a flaw it can open a whole expensive can of worms.
I doubt New York requires mandatory payment of a % of assets. Florida doesn't.

Also - probate pretty much closes the door on all existing and possible claims against an estate. Without probate - creditors can jump out of the woodwork years down the road (with legitimate or frivolous claims).

FWIW - our last probate (my late FIL's) cost us $4k in attorney's fees. Based on actual hours spent doing the probate. On a 7 figure estate. Robyn
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Old 04-25-2014, 08:46 AM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 17,945,286 times
Reputation: 6717
Quote:
Originally Posted by Chaffeetrekker View Post
I have a friend who is worth a million or two...All he has is a simple Holographic Will for his personal property (home contents) and he says that his Son would probably just donate all that stuff to charity anyway so there wouldn't be any probate....He rents a Condo and leases a car....He has all his assets including the Roth and IRA tied up with a large Mutual Fund company in various stock and bond accounts and all his investments have individual Beneficiaries for the different funds...He says he can change beneficiaries any time he wants online if he gets PO'd at one of his Sons or Daughters...When he dies all his kids have to do is present a valid Death Certificate to the Mutual fund company and then everything is transferred as per the beneficiary designation...Seems like a good plan for a guy who lived a simple life with just a few kids and no living previous wives.
A true holographic will isn't valid in Florida:

Florida Last Will and Testament | Florida Probate Solutions

Also note that there is nothing about using a POD designation that eliminates the need to file/pay any required federal /state estate/inheritance forms/taxes.

And things can get kind of messy both from a legal and family POV if someone is constantly changing account beneficiary forms and no one has a handle on what the overall state of affairs is at any given time. Also - if you're dealing with an elderly and/or sick person - arrangements like this can easily be challenged by (potential) heirs claiming that when certain documents were executed - the person making the changes lacked the legal capacity to make them. The attorney who drew up our wills actually films the execution of wills if a person is pretty old and/or there are any possible issues that the person signing the will may be incapacitated. Robyn
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