Trusts have their purposes.........

[Pablo]

Number one is to create jobs for lawyers. The rest seems somewhat important, from DuckAssist AI:

"A trust serves several purposes, including providing legal protection for assets, ensuring they are distributed according to the trustor's wishes, and potentially saving time and reducing paperwork. Trusts can also help avoid probate, maintain privacy, and offer specific parameters for how and when assets are used and distributed."

My parents have 5 trusts total (don't ask). My mom has 3 trusts.

The old lawyer, well he made a mistake. I am trying to avoid detail, but a pretty big mistake. Now they want to "decant" my mom's trusts to change them to keep the trusts going when she passes. I am saying no, or at least we get new lawyer. My brother is thinking on it.

That is all. Not a question. Just a groan.

 

[demarpaint]

Yep #1 reason is to create jobs for lawyers, #2 is to line their pockets with their client's money. #3 if done correctly they might be of some benefit. FTR lawyers screw up too, ask me how I know.......

 

[Oldwolf]

During my father's last years I put his small amount of funds into a trust so that he would be eligible for world war II pension benefits.

 

[JeffKeryk]

I've written a few computer programs in my day that generated numbers that were reported to the SEC with the CEO and CFO's liberty at stake.

I do not understand why this cannot be done with a simple trust. Heck, at least this would establish a standard instead of a trust lawyer's so-called expertise.
By the way, I need to make a few changes in mine... What's a poor boy to do? Sheesh.

 

[dnewton3]

Trusts certainly have their time and place. They can be great tools when structured properly. We have used trusts for the passing of my parents; creating "family trusts" for the more efficient transfer of assets.

Much of this is unique to each state, because each state has specific laws unique to how trusts are set-up, structured and treated.

 

[skyactiv]

My dad is a retired attorney and had his own general law practice. There are different types of trust. Revocable/living trust, irrevocable and a few others.

I'm in a situation where I'll probably outlive my wife and we have no children. I had a son at 20 my than GF and I adopted out. I suspect he's doing well as his baby mom went to Vanderbilt and we adopted him out at birth to a married college professor and public school teacher. My son is an adult now and I'd like to find out who he is and possibly give him something when I die.

 

[paulswagelock]

Trusts certainly have their place. My wife and I have several in place for a structured path to pass along assets. Sometimes a will isn’t enough.

 

[Astro14]

Agreed - trusts are state-specific and allow for a smoother/lower tax inheritance process. We have two trusts - one for our assets and estate, and one with its own funding in order to discharge a very specific financial circumstance and obligation. A specific objective outside our estate.

 

[Pablo]

Trusts certainly have their place. My wife and I have several in place for a structured path to pass along assets. Sometimes a will isn’t enough.

Sure a will is not enough.

Several? Be careful. Read every word, stop and dig. Look for contrary type sentences.

I am guilty of being too distant on my mom's. Lawyers get big money, brother oversees. He disperses the legal fee dollars. I never went word for word. I don't even have a copy here. Too much trust on my part. What they did wrong is beyond borderline, IMHO. Oddly a new hire at the legal office caught it and fired off an email to my brother - the old lawyer must have OK'd the email.

Random web grabs:

https://mcb-law.com/decanting-a-trust-what-it-means-and-when-it-should-be-considered/
https://info.wealthcounsel.com/blog/trust-decanting-dos-and-donts

Decanting trusts - on our nickel for their mistake. This stews my bacon cookies.

Our own (Pablo) trust is singular and relative simple, aim is to keep it that way. I can see two, for the purpose @Astro14 points out.

 

[Astro14]

Allow me to point out that our estate planning attorney set up our primary trust for a flat fee - which was $1,500. Cheap, really. It was about half of that to set up the second trust. If anyone in Virginia needs an estate attorney, she is great. PM me for details and a recommendation.

 

[researcher]

The other reason to have a living trust is to stay out of Probate Court. That's where Wills go to be decided, and you do not want those people going through to tell your family what to do and what their take is after you pass. Been down this road recently and was very thankful that my parents decided to get an trust (irrevocable after their passing)! Was very easy to administer as a successor trustee, and like @Astro14 said, my parents went with the flat fee of about $1000-1500 to set up.

 

[02SE]

I'll just say that if you have Beneficiaries of things like a Bank account, Property, IRA, 401k, etc., make sure the ORIGINAL Beneficiary Application form is correctly amended to reflect your current wishes. IF a later Trust and/or Will states something different, it may not matter. Banks, etc will go by the ORIGINAL Beneficiary application form.

 

[supton]

I'll just say that if you have Beneficiaries of things like a Bank account, Property, IRA, 401k, etc., make sure the ORIGINAL Beneficiary Application form is correctly amended to reflect your current wishes. IF a later Trust and/or Will states something different, it may not matter. Banks, etc will go by the ORIGINAL Beneficiary application form.

Indeed. At work they brought in a Fidelity rep a few times to push 401k's. Each time they told the same story: a man started a 401k and named his wife as beneficiary. Few years later, divorce, remarry. Fast forward a few decades and he dies. First wife gets all of the 401k as he never updated beneficiaries. Somehow this is pretty hard to dispute in court, unlike a will.

 

[andyd]

Wife had the good sense to die first. I'm 73 and doubt I have much more than 15 yrs, if that many. My only asset is my house and 401 ks etc. The house is in an irrevocable trust with the 3 kids as beneficiaries. They are beneficiaries of my 401ks, etc. Oldest is a lawyer, Daughter is doing well, her twin brother lives with me and cooks me great food. Thanks to a trust my father set up for his grandchildren. and administrated by my sister who is a licensed financial planner.. I'm not rich, but I am a tightwad with my ex-little league umpire turned lawyer and my sister watching over me..

 

[Pablo]

My dad passed before my mom, although that was different than we expected the last year of so, obviously changes for that sequence.

 

[2005jettatdi]

Wife had the good sense to die first. I'm 73 and doubt I have much more than 15 yrs, if that many. My only asset is my house and 401 ks etc. The house is in an irrevocable trust with the 3 kids as beneficiaries. They are beneficiaries of my 401ks, etc. Oldest is a lawyer, Daughter is doing well, her twin brother lives with me and cooks me great food. Thanks to a trust my father set up for his grandchildren. and administrated by my sister who is a licensed financial planner.. I'm not rich, but I am a tightwad with my ex-little league umpire turned lawyer and my sister watching over me..

Are you sure it is not a revocable trust? With a revocable trust your kids get stepped up basis when you die. Not so with an irrevocable trust. However, I also understand there may be other considerations.