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Old 09-07-2017, 02:35 PM
 
Location: Midvale, Idaho
1,545 posts, read 2,389,860 times
Reputation: 1961

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Too much to read all the way through for me. We did a trust about a year before my husband was diagnosed with pancreas cancer. So glad it was done. There was no probate when he passed. Life just went on. I did have one tiny issue at the bank the other day with a new teller when I took a check in made out to the trust to deposit. A house mortgage payment on papers we were/are carrying. The teller wanted to know how I was allowed to put this money in the account I wanted to because it was made out to the trust. I told her I am the trust until I die. then everything I own all goes to Best Friends Animal Rescue and they come in and take car of whatever animals I have left for their life time. We had no children or family. This is what both of us wanted to do with our assets. I have no plans to remarry but I did read in here the what if if I did and how this might be or not be addressed in the trust. Just leaving it alone for now because no need to even look into it. But I would keep it in mind should I ever change my mind. the whole trust was expensive I felt at $3K. Seemed a lot but there are many many pages to it covering many items.
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Old 09-07-2017, 02:49 PM
 
Location: Florida
4,382 posts, read 3,724,411 times
Reputation: 4126
Quote:
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.
If the assets are not in your trust then they will be distributed according to your will (and go through probate) and if their is no will it will be distributed according to your state laws.
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Old 09-07-2017, 02:54 PM
 
Location: Florida
4,382 posts, read 3,724,411 times
Reputation: 4126
Quote:
Originally Posted by MI-Roger View Post
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!
How does a trust minimize taxes? If you are talking about an irrevocable trust I would agree that it can help minimize taxes but it can also cause gift taxes. I do not think a revocable trust helps with Federal taxes.
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Old 09-07-2017, 03:01 PM
 
Location: Florida
4,382 posts, read 3,724,411 times
Reputation: 4126
Quote:
Originally Posted by saralvr View Post
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.
Did not look back for any other posts.
It sounds like a trust could work for you. Assuming you are married then the trust could be set up in the will and the surviving spouse would have access to the assets but when they died the assets would go to the next in line in the trust. You could end the trust or continue it at the second death. Think of giving the beneficiaries the ability to change trustee and end the trust when it gets too small.
If divorced now and all the assets are yours a trust set up before a new marriage is also a good idea.
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Old 09-07-2017, 03:03 PM
 
Location: Florida
4,382 posts, read 3,724,411 times
Reputation: 4126
Quote:
Originally Posted by TrilbyandDixie View Post
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.
Sounds like a good use of a trust.
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Old 09-07-2017, 03:48 PM
 
71,977 posts, read 72,020,102 times
Reputation: 49554
Quote:
Originally Posted by rjm1cc View Post
How does a trust minimize taxes? If you are talking about an irrevocable trust I would agree that it can help minimize taxes but it can also cause gift taxes. I do not think a revocable trust helps with Federal taxes.
you are correct . revocable trusts pass through to you personally
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Old 09-07-2017, 03:55 PM
 
Location: 5,400 feet
2,627 posts, read 2,589,974 times
Reputation: 3685
Quote:
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.
No, that's not what I said. If your will is drafted properly you should not have a problem. I was referring to the few estates I saw where the decedent had not properly maintained his/her trust and did not have a will. As a result, those assets not in the trust were distributed pursuant to the state law on intestacy.
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Old 09-07-2017, 06:01 PM
 
Location: Santa Monica, Ca
6,937 posts, read 3,868,939 times
Reputation: 16526
I have a irrecoverable trust fund. the trust owns all of the assets. House, vehicles, properties all belong to the trust, but I got to pick them and to use them as if they were mine. My only assets are those that are deposited into my bank account on the first of each month. The exec, accountants and F/A's do all of the heavy lifting. They take care of investments, taxes, on going businesses and my personal income taxes. Questions in regards to my trust fund are usually met with... its none of your business, you only need concern yourself with the money you get monthly. Even the line of succession is in place, with contingentcies for changes in circumstances ( such as having children, which I don't have at present). I am pretty well protected.. even from me. Lol
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Old 09-07-2017, 10:08 PM
 
Location: Tennessee at last!
1,886 posts, read 2,053,088 times
Reputation: 3796
Quote:
Originally Posted by shades_of_idaho View Post
Too much to read all the way through for me. We did a trust about a year before my husband was diagnosed with pancreas cancer. So glad it was done. There was no probate when he passed. Life just went on. I did have one tiny issue at the bank the other day with a new teller when I took a check in made out to the trust to deposit. A house mortgage payment on papers we were/are carrying. The teller wanted to know how I was allowed to put this money in the account I wanted to because it was made out to the trust. I told her I am the trust until I die. then everything I own all goes to Best Friends Animal Rescue and they come in and take car of whatever animals I have left for their life time. We had no children or family. This is what both of us wanted to do with our assets. I have no plans to remarry but I did read in here the what if if I did and how this might be or not be addressed in the trust. Just leaving it alone for now because no need to even look into it. But I would keep it in mind should I ever change my mind. the whole trust was expensive I felt at $3K. Seemed a lot but there are many many pages to it covering many items.

With my parent's trust we had to give the bank a copy of the trust to show that we had the right to access the trust, deposit and withdraw funds. I ended up changing banks for the trust and to set up the new account had to provide a copy of the Trust and death certificates for both my parents.

I was glad that the bank was concerned that the proper people had access to the funds. And when my brother tried to access the money, the bank would not even verify that there was an account to him, since he was not listed on the account....even though he was a beneficiary of the trust. They stopped him in his tracks in trying to take money out.
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Old 09-09-2017, 10:10 PM
 
Location: Santa Monica, Ca
6,937 posts, read 3,868,939 times
Reputation: 16526
Quote:
Originally Posted by lae60 View Post
With my parent's trust we had to give the bank a copy of the trust to show that we had the right to access the trust, deposit and withdraw funds. I ended up changing banks for the trust and to set up the new account had to provide a copy of the Trust and death certificates for both my parents.

I was glad that the bank was concerned that the proper people had access to the funds. And when my brother tried to access the money, the bank would not even verify that there was an account to him, since he was not listed on the account....even though he was a beneficiary of the trust. They stopped him in his tracks in trying to take money out.
My money is deposited into my bank account on the first of each month. I can talk to the exec or F/A about things, but don't have any kind of hands on access to the account itself.
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