Why/When would you need a trust over a will
- Thread starter raaizin
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State laws prevail here. I am not an attorney.
In the states that I lived many parents, create a living trust. Title to the property is transferred to the children and the parents given the right to live out the rest of their lives in that property.
This is a subject where you should talk to a local attorney.
When your assets/net worth reach a particular threshold, that you need the protection of a trust. In a trust, there are tax advantages. This is a question for an estate planning attorney in your state of residence.
I have a trust from the advice of my attorney, accountant and financial advisor.
probate
My aunt passed away over 2 years ago her will is still in probate and going nowhere fast
I plan to leave a large percentage of my estate to my grandkids but don't want them to get a lump sum. Getting a bunch of money when they're young could actually ruin their lives. They might think that they don't have to work for a living, that cars are disposable, that "friends" expect you to pay their expenses, etc.
So they're going to be beneficiaries of a trust fund instead that will support their education (university or a trade - what they study is up to them), help with major expenses, and give them a certain percentage of their share of the trust at certain ages - up to age 35. When they get to age 35 they will get whatever is left. If they aren't responsible with money by the time they're 35 years old there's no hope anyway.
There will be quite significant expenses to setting up and administering a trust. There will be lawyers and accountants involved at some point, annual reports, income taxes, etc.
So they're going to be beneficiaries of a trust fund instead that will support their education (university or a trade - what they study is up to them), help with major expenses, and give them a certain percentage of their share of the trust at certain ages - up to age 35. When they get to age 35 they will get whatever is left. If they aren't responsible with money by the time they're 35 years old there's no hope anyway.
There will be quite significant expenses to setting up and administering a trust. There will be lawyers and accountants involved at some point, annual reports, income taxes, etc.
You really should think of them as two separate things.
This is pretty simple: https://www.investopedia.com/articl...1315/will-vs-trust-difference-between-two.asp
I have a revocable trust. We have no children and I will most likely outlive my type 1 diabetic wife. I had a son when I was 20 and he's an adult, but has never made contact with me which could change everything.
Generally, if you leave property in a will, the inheritor gets it all at once.
On the other hand, if you create a trust with a named beneficiary, such as a spendthrift person, you can dole them out money, in limited quantities, over time. Sort of like an allowance. The trust allows some throttle over how fast the money goes out, and what it can go for.
On the other hand, if you create a trust with a named beneficiary, such as a spendthrift person, you can dole them out money, in limited quantities, over time. Sort of like an allowance. The trust allows some throttle over how fast the money goes out, and what it can go for.
What is holding things up? I was executor of my parents estate there were no issues. You could PM me if you would like to keep it off forum
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The executor can hold it up. The lawyer can hold it up. They can use all kinds of excuses. Its usually family so it ends up being a mess.
I am thinking about setting up a trust for my kids, even though there is only two of them and there will be nothing complicated.
would the executor have power of attorney , I think I did that with my Dad.
Yes .... if your dad appointed you to be. Because he could no longer make decisions for himself for whatever reason .
Be honest I don't know. It's held up in Brooklyn NY probate court that's backed up because of covid. My cousin who is taking care of the will is definitely milking it because her name is on all the accounts and I'm sure she milking some of the money. My cousin is very vague won't answer no questions tells us to call the lawyer who won't get on the phone. My attorney spoke to him a few times then sent him a letter it now seems to be moving forward.
I went to my Moms EA for help with the Trust and she said if I would have gotten a Lawyer for this it would drag on for a while . So I guess that's expected when dealing with Lawyers . Dont hire one as a Trustee .
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