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Re: living trust?
Old 02-01-2007, 08:48 PM   #21
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Re: living trust?

With me being single and my Mom being widowed, I'm on all of her accounts, insurance policies, and lockbox, and she is on my accounts, etc. Annuities, insurance policies, pensions, etc. have named beneficiaries. So in case one of us is incapacitated or dead, the other has full access to accounts. Titled/deeded property, and other misc. stuff is in revocable living trusts. There won't be any need of probate when either of us kicks!

To any local probate attorneys that may be peering in here......Sorry! No dough to be made on us!!!
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Re: living trust?
Old 02-02-2007, 05:18 AM   #22
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Re: living trust?

If DW fell over dead and I decided to remarry, my gut would make me put almost everything into some sort of trust for my kids. I (and she) would be able to live off the proceeds; but if she decided to run off with Raul-the-pool-boy, she wouldn't have much to go for in the divorce. If I fell over dead, I'd have some smaller amount of assets that would be hers plus she'd get my SS. She wouldn't get the bulk of the assets accumulated before our marriage.
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Re: living trust?
Old 02-02-2007, 08:20 AM   #23
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Re: living trust?

I mentioned above that at this point, we do not have a living trust. However, our wills do poor over into trusts as some of our heirs will need a trustee to manage their money. This is different from the living trust.

Goonie, in some parts of the US lawyers make beaucoup money from probate. For example, I understand that Florida and California have expensive, long and complicated probate procedures and that is why living trusts are favored in those states. However, in states like Minnesota and Wisconsin, probate is not a big deal, a paralegal does most all the work, and it is relatively cheap and fast.

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Re: living trust?
Old 02-02-2007, 09:05 AM   #24
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Re: living trust?

Quote:
Originally Posted by Brat
Only if you put them all in the same trust. I know of no rule that says you can't have more than one. Different trusts can have different grantors. I agree that assets in any one trust become commingled.
DW and I have separate trusts. We put one house in each name. That way when one of us dies, the other doesn't end up with the full estate to pass on. Our pre-tax funds are, of course, in our own names so they fall into our individual trusts. Taxable funds are still in both names - under current estate tax law that doesn't matter. If one of us dies, the joint stuff passes to the other and into the others trust. If the estate tax limit drops back to $1M we will take a look at divvying up the taxed funds.
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Re: living trust?
Old 02-02-2007, 09:16 AM   #25
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Re: living trust?

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Originally Posted by Martha
. But in states where probate is expensive or takes an extended period of time they make good sense. For other states, there are other ways to make sure each spouse has or can have their own assets to take advantage of the estate tax exemptions.
IIRC the lawyer "friend" that Mom named to handle her estate through probate charged in the neighborhood of 7% - which I think is the max allowed in VA. Quite a hit for handling a bunch of routine documentation & errands.

We have the living trust for that reason, as well as heading off any potential attacks on the estate by those who might feel entitled to more than they get. Families can get weird.......
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Re: living trust?
Old 02-02-2007, 09:34 AM   #26
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Re: living trust?

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Originally Posted by Bobot
IIRC the lawyer "friend" that Mom named to handle her estate through probate charged in the neighborhood of 7% - which I think is the max allowed in VA. Quite a hit for handling a bunch of routine documentation & errands.

We have the living trust for that reason, as well as heading off any potential attacks on the estate by those who might feel entitled to more than they get. Families can get weird.......
Yes, some states allow lawyers to take a percentage for doing a probate. In Minnesota and many other states it is not allowed and considered unprofessional. I am still amazed that there are states and lawyers that think it is fine.

The reason these are complicated questions is the variation among the states so don't make any kind of decision based on what people say here, you really need to talk to a lawyer to decide how to do disability and estate planning.

One thing that some people throw into wills if they have "difficult" heirs is a no-contest clause which provides that if an heir contests the will they will get nothing.
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Re: living trust?
Old 02-02-2007, 10:19 AM   #27
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Re: living trust?

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One thing that some people throw into wills if they have "difficult" heirs is a no-contest clause which provides that if an heir contests the will they will get nothing.
DW's uncle had a substantial estate in the form of a highly successful company. In his will he established a substantial "allowance" for his wife, children and grandchildren. He also stipulated that none of the immediate family could be president of the company. His wife and daughter contested the will despite the "no-contest clause." They claimed that living on the six figure allowance presented an unbearable hardship. After all, there were 5 of them.

My FIL who was no softie in his day and was one of 3 executors. They were all individually sued for everything you could imagine. It looked like an episode of "Dallas" for quite awhile. Eventually, my FIL and the other executors folded and gave in to the blatant extortion.

The daughter took over running the company. It went bankrupt in about 5 years.

The "no-contest clause" isn't all it's cracked up to be.

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Re: living trust?
Old 02-02-2007, 10:29 AM   #28
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Re: living trust?

Sometimes it won't matter what you do, if you have litigious relatives and a lot at risk.
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Re: living trust?
Old 02-02-2007, 12:01 PM   #29
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Re: living trust?

Quote:
Originally Posted by Bobot
Families can get weird.......
In our family we know that there is at least one family member who has been known to be a problem in the past. That is why we are doing the RLT...what gets passed to them gets passed to them....what doesn't get to them, doesn't. I'm successor trustee for her (and she for me) and I will pass on to my siblings everything due them....and even more if they don't p*ss me off! But if the one family member p*sses me off...they'll get ONLY what was left to them!!!
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Re: living trust?
Old 02-02-2007, 07:23 PM   #30
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Re: living trust?

[quote ]
, in some parts of the US lawyers make beaucoup money from probate. For example, I understand that Florida and California have expensive, long and complicated probate procedures and that is why living trusts are favored in those states. However, in states like Minnesota and Wisconsin, probate is not a big deal, a paralegal does most all the work, and it is relatively cheap and fast.


[/quote]

No wonder my late husbands probate took almost four years and cost a bundle ! We were living in Florida !
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