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Old 09-06-2017, 09:14 PM
Location: Tennessee at last!
1,886 posts, read 2,033,779 times
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Originally Posted by saralvr View Post
We had our trust made earlier this year and are still learning about it. We haven't funded much of our assets/accounts into it yet but plan to. Are you saying if it's not in the trust it isn't part of our will in general? That's not what we were to understand.
Your trust is only a trust of assets that are placed into it. SOOOOOOOOO if your house is not deeded in the name of the trust and you pass then your house is NOT a part of the trust. Same with your vehicles, bank accounts, etc.

Your intensions do not matter, its your actions. So, you went through the expense to write a trust that does NOTHING if you do not change the title of your assets and make them part of the trust.

You have some work to do....transfer one asset a week until its done!
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Old 09-06-2017, 11:42 PM
Location: Wisconsin
21,534 posts, read 43,962,244 times
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I'm pretty much following the suggestions, here:

Five Ways to Avoid Probate In Wisconsin

Relative to real estate/your home - I am right this minute looking at the completed State of WI Designation of TOD Beneficiary which I plan to file with the Register of Deeds this week. My son is the beneficiary. When I go, he gets the house and can automatically assume the mortgage, should there be any, w/o any underwriting under a 1982 federal law, specifically the Garn-St. Germain Depository Institutions Act of 1982, which allows an exception to the due-on-sale clause when a property transfers by inheritance. The law allows a close relative who inherits property to assume payments on the mortgage and retain ownership of the property.

Bank accounts are also POD, and he is sole beneficiary on my IRAs.

I still plan to consult with an attorney but, outside of contents of my house, jewelry and automobile, there isn't much else for him to get.

So, for those who haven't yet done a TOD on their houses, you might want to look into the feasibility in your state. The article I linked says TOD on real estate can be done in a "handful of states."

Last edited by Ariadne22; 09-06-2017 at 11:55 PM..
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Old 09-07-2017, 02:21 AM
71,463 posts, read 71,629,249 times
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as i always point out , be care ful putting your house in a living revocable trust .

you are taking a protected asset from medicaid and unprotecting it .

a house held in personal name is not counted as an asset as far as qualifying for medicaid . once it goes in that trust it is counted .

folks are blown away when they try to qualify for medicaid and find out they have to sell the house and spend down the money to qualify for it . .
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Old 09-07-2017, 04:25 AM
Location: Ypsilanti, MI
2,431 posts, read 3,657,283 times
Reputation: 4758
Originally Posted by BellaDL View Post
BTW, I was not seeking for online legal advice - two of my sisters are lawyers ;-). The question "Do we need a trust?" just means this is the reason that I accepted the dinner seminar invitation.

I started this thread because I am interested in learning about other retirees' experience, their reasons for getting a trust or not getting a trust, to accept or not accept a dinner seminar invitation. I like the idea of making the decision based on the quality of the dinner ;-)
We have both a Will and Trusts. A Will can minimize probate time and costs, a Trust can minimize taxes depending upon assets owned. Talk to a specialist - and not at one of those Sales Dinners. We get invitations (note plural tense) every week!
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Old 09-07-2017, 04:44 AM
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keep in mind :
revocable trusts do nothing for taxes while you are alive regardless of asset type . they are always the same as you personally . only irrevocable trusts while you are alive can have an effect on taxes and liability but for the most part you give up control and free reign over those assets . an a/b trust after you die can have some tax advantages .


A basic revocable living trust does not reduce estate taxes by one red cent; its only purpose is to keep your property out of probate court after you die. Nor can you accomplish this trick by creatively juggling the percentages of your property each family member will receive.
On the other hand, an AB ("bypass") trust is designed to save on estate taxes by leaving some property to your children, but allowing your surviving wife to use it (and any income it produces) during her lifetime. That way, she does not legally own the property, and it won't be subject to estate tax at her death. *
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Old 09-07-2017, 06:23 AM
672 posts, read 837,147 times
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I just ordered a book on wills and trusts. We'll read through it and educate ourselves. Our particular situation is a little different than the average and a trust was suggested for us.

The poster that wrote the different scenerios is spot on. We also had a horrible experience. It puts things in a different perspective when that happens. My sister passed away in her early 40's. She was married to a wonderful man and they had 3 children. My BIL eventually remarried and he then got sick (also in his 40's). The new wife, who was genuinely a nice person, convinced him to change his will. She cried to him that if/when he died she wouldn't be able to survive on her own salary, etc. (although she did fine for years prior to their marriage!) When he died she got the house and 1/2 of the estate. His 3 children (ages 21, 24, 28) split the other 1/2. They were only married 19 months. My sister would NEVER have wanted her children not to get a larger portion of their estate. There were so many other scenerios that would have been more appropriate. So, now, when new wife passes, her own children get the house and the money. I don't want that to happen to my children. I do want my husband to go on and find happiness. I worked hard for my family and if I die I want some of our portfolio protected so that after he passes that money can only go to my children. At least that's how I understand it.

Plus, as I stated, we have certain provisions we wanted secured in regards to our children and grandchildren and a trust was suggested for this reason.

Unfortunately, we realized that we really don't undertand them completely. The book should help us and start us on funding them appropriately. I was more concerned about the poster who stated we don't have a will if we have a trust. I put a call into our attorney this morning to answer some basic questions.

As always, I appreciate all the great people that help on this forum.
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Old 09-07-2017, 06:35 AM
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keep in mind that kind of protection only can come from irrevocable trusts and in effect if you or your spouse die you are under great restriction as far as access to the other spouses assets .you can take earnings and some limited principal but basically anything else has to demonstrate certain needs .

certainly no way we want to live . they can be costly to administer . putting heirs as trustee usually ends up breaking up families as things are done or taken out the others resent .

certainly speak to the best attorney in this field you can find irrevocable trusts can be a minefield .

we have disclaimer trusts in place since at one time we needed them to get over new yorks estate tax cliff . hopefully we will never need them at this point .

Last edited by mathjak107; 09-07-2017 at 06:57 AM..
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Old 09-07-2017, 09:25 AM
2,952 posts, read 1,634,675 times
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Originally Posted by steiconi View Post
my husband was executor of his sister's estate, with no trust. What a nightmare, it took nearly a year to get everything worked out.

I was executor of my parents's trust, things went smoothly, bing bang boom done.

We keep meaning to create a trust, but haven't done it yet. I believe you can do it economically online.

Maybe you can do it on line in certain states. I know our's could not of been that way.

Ours cost $4500.00 and its very complicated. Many years ago. We have to update it every year. A family member who is an attorney is the executor, it costs us nothing.

If cost is an expense you can't justify, you probably don't need one.

You experienced a situation with one and without one. Was it worth it to you? Don't cheap out on something like this.
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Old 09-07-2017, 09:29 AM
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here in ny we paid 4800 for 2-disclaimer trusts plus our wills ,health proxies and poa .
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Old 09-07-2017, 10:08 AM
Location: South Florida
195 posts, read 105,973 times
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The nice thing about a trust is that you can leave assets to your daughter without them having to go through probate and you can make yourself the trustee but with a contingency for your daughter to become the trustee in case neither you nor your husband can handle it due to some infirmity.
I set up a trust several years ago because my husband has dementia and I wanted to be sure that if something happened to me he would be provided for. I came into this marriage with far more assets than him and he has the most God-awful daughter. She used to only call him when she could get something from him. Now that he has dementia and can't write a check she doesn't bother with him. I wanted to make sure that if I went first that she wasn't the one who would make sure he was taken care of. My sister will become the trustee when I die and she will look after him financially. Then, when he goes the assets left in the trust revert back to my family.
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