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TOD on house
Old 07-06-2016, 10:32 AM   #1
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TOD on house

My home is in the trust. The only thing in the trust. Now we can have a TOD on it instead. Should I take it out of trust to put the TOD on it or leave it in the trust and just add the TOD?
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Old 07-06-2016, 11:51 AM   #2
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what was the reason for the trust? Were there other reasons for the trust other than doing beneficiaries at the end? Was is so someone could become trustee and handle your affairs when you become incapacitated?

What do you do if the beneficiary dies with the house having only a TOD?

If you pull the house out of the trust to put a TOD, you will need to create another deed (I think).
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Old 07-06-2016, 11:57 AM   #3
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After being the executor for my mother's Trust, I learned what was good and bad in that type of a document and incorporated the good / corrected the bad. I titled my home over to revocable trust to simplify it for my son. In that he will be dividing it between himself and his sister I just didn't know if this new type of document is better. It has nothing to do with my incapacitation. Just with passing my assets to them. I have the TOD / POD on all investments, bank accounts, and it's not needed on insurance. I am keeping everything else under the small estate affidavit limits for the State of California
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Old 07-06-2016, 12:28 PM   #4
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Remember a trust helps you at death AND incapacity. A TOD only helps at death. If you have a trust USE IT to the fullest that you can!
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Old 07-06-2016, 01:30 PM   #5
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Originally Posted by gayl View Post
After being the executor for my mother's Trust, I learned what was good and bad in that type of a document and incorporated the good / corrected the bad. I titled my home over to revocable trust to simplify it for my son. In that he will be dividing it between himself and his sister I just didn't know if this new type of document is better. It has nothing to do with my incapacitation. Just with passing my assets to them. I have the TOD / POD on all investments, bank accounts, and it's not needed on insurance. I am keeping everything else under the small estate affidavit limits for the State of California
a trust takes one person (the trustee) to distribute assets. The TOD/POD will require each beneficiary to go claim the asset as far as I know. Thus make sure they all know.

The TOD/POD are not new. They are useful.

What do you mean by the bold comment above. I'm not sure a TOD/POD will get you out of estate taxes. It should reduce the assets for probate. The trust can do the same.
If one of the POD/TOD beneficiaries is not able to take over the account, I would be it goes back to your probate. Trusts can be worded to handle these situations.
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Old 07-06-2016, 04:39 PM   #6
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a trust takes one person (the trustee) to distribute assets. The TOD/POD will require each beneficiary to go claim the asset as far as I know. Thus make sure they all know.

The TOD/POD are not new. They are useful.

What do you mean by the bold comment above. I'm not sure a TOD/POD will get you out of estate taxes. It should reduce the assets for probate. The trust can do the same.
If one of the POD/TOD beneficiaries is not able to take over the account, I would be it goes back to your probate. Trusts can be worded to handle these situations.
I am not the OP, though I am looking into similar approach. My asset classes are straightforward: bank accounts, IRA and 401K, 2 cars, and one primary house. We have no second marriages. Children are not married. No other relatives in US.

I will consider Living trusts when our family dynamics changes. But for now, I have set up POD beneficiaries for all my bank accounts; Primary beneficiary and contingent beneficiaries for IRA and 401K accounts. I have submitted TOD changes to DMV for our 2 cars. DW and I both submitted TOD change to county recorder office for our primary house.

The remaining assets are the content inside our house: piano, laptops, clothes, furniture. We do not have expensive Jewry. No fur coats. No boats. So, the total value of the remaining content is likely less than $150,000, which I believe is what OP indicated:


I am keeping everything else under the small estate affidavit limits for the State of California


The probate process is simplified in California if it is below that limits.
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Old 07-06-2016, 04:47 PM   #7
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So, the total value of the remaining content is likely less than $150,000, which I believe is what OP indicated:


I am keeping everything else under the small estate affidavit limits for the State of California


The probate process is simplified in California if it is below that limits.
Ummmm .... traceable assets. Hard to figure jewelry, loose gems, coins, paintings .... kids have always played fair and I doubt they'll try to screw each other after getting the other $$s. Left a request that Grands get coins but I'll be gone so won't know
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Old 07-07-2016, 09:19 AM   #8
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You've created a bit of a mess. There is a definite conflict between having the property in a trust and also a TOD. I'm not even sure how you got the TOD on it because it doesn't apply to a trust which doesn't "die". If you are happy with the TOD designation I would remove the house from the trust. I suspect legally it already is out of the trust. You'd be well advised to speak with the lawyer who drew the trust and put the property in TOD.
Bruce
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Old 07-07-2016, 11:19 AM   #9
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I am not the OP, though I am looking into similar approach. My asset classes are straightforward: bank accounts, IRA and 401K, 2 cars, and one primary house. We have no second marriages. Children are not married. No other relatives in US.

I will consider Living trusts when our family dynamics changes. But for now, I have set up POD beneficiaries for all my bank accounts; Primary beneficiary and contingent beneficiaries for IRA and 401K accounts. I have submitted TOD changes to DMV for our 2 cars. DW and I both submitted TOD change to county recorder office for our primary house.

The remaining assets are the content inside our house: piano, laptops, clothes, furniture. We do not have expensive Jewry. No fur coats. No boats. So, the total value of the remaining content is likely less than $150,000, which I believe is what OP indicated:


I am keeping everything else under the small estate affidavit limits for the State of California


The probate process is simplified in California if it is below that limits.
So this is to limit the amount the is probated. TOD, POD or trust will limit probate amounts. None of these limit estate taxes except an irrevocable trust the moves the asset out of the owners reach. These would not be living trusts.
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Old 07-07-2016, 01:54 PM   #10
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You've created a bit of a mess. There is a definite conflict between having the property in a trust and also a TOD. I'm not even sure how you got the TOD on it because it doesn't apply to a trust which doesn't "die". If you are happy with the TOD designation I would remove the house from the trust. I suspect legally it already is out of the trust. You'd be well advised to speak with the lawyer who drew the trust and put the property in TOD.
Bruce
FWIW : The house doesn't have a TOD on it. It was something I was considering doing
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Old 07-07-2016, 07:05 PM   #11
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If the trust no longer serves its original purpose and the TOD would accomplish your objectives I see no harm in doing what you suggest.
Bruce


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