revocable living trust

[frank]

I know this subject has been a topic before but I could not find the link. I was wondering if a revocable living trust is enough to avoid probate on a small estate with one home, 3 vehicles and some bank accounts. total probably 150k. do you put the vehicles in the trust or just the real property? the accounts are already pod, but I don't know if you have to name the vehicles in the trust or how to transfer them when the time comes. anyone have ideas on this? If you don't put the vehicles in the trust how do you transfer them after death? thanks

frank

 

[Aerides]

Here's a thread that specifically references vehicles in a living trust that might be helpful:

https://www.early-retirement.org/forums/f28/rv-placed-in-living-trust-111725.html

 

[pb4uski]

Some states have transfer on death or TOD for vehicles. In Vermont for example, the owner fill out a form along with a $35 fee and the DMV has that on their records and it is like naming a beneficiary on a financial account.

Many states also have similar mechanisms for real estate. Luckily, the states that we have real property in allow enhanced life estate deeds.

You might also check into what the small estate provisions are in your state.

 

[Sunset]

Some states have transfer on death or TOD for vehicles. In Vermont for example, the owner fill out a form along with a $35 fee and the DMV has that on their records and it is like naming a beneficiary on a financial account.

Many states also have similar mechanisms for real estate. Luckily, the states that we have real property in allow enhanced life estate deeds.

You might also check into what the small estate provisions are in your state.

+1

IL changed the law to allow TOD for real estate ~10 yrs ago, something that is not widely advertised so many people don't know it exists.

In IL the small estate of less than $100K doesn't require probate. Key here is what constitutes an estate, as not everything counts (like TOD accounts don't count), so a deceased person could own a lot more than $100K and still qualify.

 

[OldShooter]

I know this subject has been a topic before but I could not find the link. I was wondering if a revocable living trust is enough to avoid probate on a small estate with one home, 3 vehicles and some bank accounts. total probably 150k. do you put the vehicles in the trust or just the real property? the accounts are already pod, but I don't know if you have to name the vehicles in the trust or how to transfer them when the time comes. anyone have ideas on this? If you don't put the vehicles in the trust how do you transfer them after death? thanks

Your expert estate attorney can help you figure these things out. SGOTI is not an expert estate attorney.

 

[pb4uski]

^^^ Do you seriously think an expert estate attorney is required for a $150k estate of vehicles, a real property and some bank accounts as described?

Also, while we are SGOTI, many of us have real world, practical experience in estate planning and settling estates and no skin-in-the-game to recommend trusts that we get a nice fee for doing the paperwork for.

 

[OldShooter]

^^^ Do you seriously think an expert estate attorney is required for a $150k estate of vehicles, a real property and some bank accounts as described?

I dunno. To me and probably to the OP that is significant money. Also, as is usual in the forum, we have only an incomplete picture of their financial and personal lives.

Also, while we are SGOTI, many of us have real world, practical experience in estate planning and settling estates and no skin-in-the-game to recommend trusts that we get a nice fee for doing the paperwork for.

Absolutely. And you are an example. But how is the OP to know that if some other SGOTI contradicts you?

I have a bit of an ulterior motive, too. I think using PODs is risky business. High maintenance at least as beneficiaries join and leave the game, children become adults, asset values change, etc. and consequently PODs must be revised. Husband and wife perishing in a common disaster much be considered as well. The classic example is a relative serving as personal representative discovers that the decedent's ex-wife is the beneficiary of his life insurance. A good attorney will help the OP evaluate their POD strategy and maybe suggest something with lower maintenance and lower risk of the OP's wishes not being fulfilled.

 

[bingybear]

put the trust

 

[Sunset]

I think TOD/POD are pretty simple, easily changed either online or at the financial institution. I've seen TOD/POD with contingent beneficiary designations.

Anything can become out of date, both a POD or a Trust, could leave estate to a dead relative or ex-wife. Difference is the POD can be changed at no cost, but a change in Trust will cost a few hundred dollars each time.

 

[OldShooter]

I think TOD/POD are pretty simple, easily changed either online or at the financial institution. I've seen TOD/POD with contingent beneficiary designations.

Anything can become out of date, both a POD or a Trust, could leave estate to a dead relative or ex-wife. Difference is the POD can be changed at no cost, but a change in Trust will cost a few hundred dollars each time.

Trusts typically and flexibly handle many contingencies from the git go, like simply specifying "per stirpes." There is also much more distribution flexibility. They can aggregate assets before distributing them, so the POD amounts don't have to line up exactly. Our plan, in fact, does aggregate our assets then divides them mostly by percentages. So it doesn't matter that one account might have become disproportionately larger than another. DW had a young assistant that died of brain cancer, she left money in one trust for three kids. There, the kids could draw money for college and any undrawn money was split evenly after a certain point in time. Strong motivation to go to college. Hard to do with POD designations.

Different strokes for different folks. I just think the lack of flexibility and the maintenance requirements for PODs are generally underappreciated negatives. For very simple situations, though, I can see why they might be useful. YMMV

 

[Dtail]

For my mom, I have both an irrevocable trust and then POD designations for all the other accounts.
I maintain everything and after the setup work, has not caused too much time.