Is there a need for a Will?

[OldShooter]

I agree Old Shooter, but sometimes is good to read what others are saying and then CONSULT YOUR ESTATE LAWYER. ...

Yes. You are doing it right. An educated customer is a good customer and is able to use an advisor cost-effectively.

Anyway, thanks again. BTW, I read it's much more difficult to contest a revocable living trust than a will...

That may well be; I don't know. With well-written documents the plaintiff rarely loses, but the legal bills that the trust or executor pays can be significant. That is the problem with contested documents.

As a long-time trust professional DW was regularly in court with unhappy beneficiaries or to get problem documents fixed. She never lost a case.

... My only problem is I don't know what to do with my IRA and Annuity, but I'll have to think more and harder. ...

If you're looking for a home for the money: One of our three charities is a community foundation. I don't know the legal details but ours concentrates in the local area and its grant sizes allow our money to have identifiable impact. This is in contrast to the big national charities where six figures is just a drop in the bucket. We are funding with QCDs so our fund can't be officially donor advised but we consult regularly with the staff on ideas and priorities. It's kind of fun actually. We've fixed roofs, bought food cards for people, fixed failed wells, ... The rule is that we help people in crisis and do not take on chronic problems that can become entitlements. One time we bought all the parts for a local HS auto shop class to fix up a car, then it was donated to a needy person. Maybe there is one of those in your area. https://en.wikipedia.org/wiki/Community_foundation, Profiles | Community Foundation Atlas

 

[2177V]

I agree Old Shooter, but sometimes is good to read what others are saying and then CONSULT YOUR ESTATE LAWYER. I do this because my lawyer doesn't explain anything so I tell him what I read and expect him to approve or disapprove - mostly he does neither! Grrrrrrrrrrr!

I understand things and beneficiaries change so of course one must follow closely and make all necessary changes. But my problem isn't this, my problem is I don't know what to do with those 2 accounts. Honestly I don't know why the State complicates things by not accepting us putting EVERYTHING into both Wills and Trusts. Why must one be combing hairs with our possessions into documents?

Anyway, thanks again. BTW, I read it's much more difficult to contest a revocable living trust than a will...

OK. Now I understand your situation: It appears that you have two accounts which your state does not allow you to put the two accounts in your will or trust.

I presume your state mandates that you to designate the two accounts as POD accounts. Your problem is that you do not have a designated person as a beneficiary.

It is my understanding that a charity can be designated as a beneficiary on a POD account. In some states, I do believe that the charity must be a recognized charity by the state government.

I also share your frustration with your attorney. I worked with attorneys for 10 years before I retire. When you ask an attorney a complicated question, they tend to avoid providing you with a straight answer. This is because they do not want to accept any liabilities. I also hired many attorneys in the past and I have learned to ask the question is such a way that makes it easy for them to answer. Generally, a question without any qualifying statements can make it hard for the attorney.

I suggest attempting to make your favorite charity as the beneficiary. This is better than making the state government the beneficiary which may be by default in your state since you do not have any surviving relatives. If you read my previous comment, you may be able to get free advice by visiting the public counter of your county Probate Court. Your county may offer free general advice on this subject. I used to work for the county government so I have knowledge of the county's services. However, each county is also different so it is a hit or miss situation.

Once you do make a charity your default beneficary, you can always change it in the future. This is because relationships may change over time.

 

[MarieIG]

Hi, if I may branch out a bit from this subject, what dos one do if there are no longer close friends or family to do a POD for an IRA and annuity? I understand these cannot be put into a Revocable Living Trust. Will they go on my Will hence on probate? Anticipating big thanks for any help.

Re your IRA, if there is no beneficiary, if should go into your estate; and be distributed according to the terms of your will. Of course, check with your attorney to confirm. I am not familiar with the terms of your annuity; many cease upon death. Without knowing more about it, I could not say.

Typically, people name a beneficiary to avoid a particular asset being part of their estate, but in your situation, that is not an issue. Good luck Rosedala.

 

[meierlde]

Or simply just leave it to the charity in the will. CRT gives a tax deduction that may or may not be needed. In our case we have three charities that equally share 1/3 of the estate with 2/3 going to testamentary trusts for kids and grands. No CRT.

the advantage of a crt is you eliminate the probate costs lawyers court fees etc. (In particular now that the federal estate tax won't bite many folks)

 

[OldShooter]

the advantage of a crt is you eliminate the probate costs lawyers court fees etc. (In particular now that the federal estate tax won't bite many folks)

The cost is to permanently lose control of significant assets. That may be too high a price. I think the bogeyman tail of "probate" should not wag the investment decision dog as the OP makes his decision.

 

[RetMD21]

This thread motivated me to recheck arrangements for my mother's estate. She has a will but the dollar level for simplified administration of the estate is lower in Michigan than where she formerly lived. I assumed that the POD accounts would pass directly outside probate. I was able to confirm that this is the case using Nolo (since I didn't want to try to read the statutes.) I think that the best thing is to have a will through a local attorney but that isn't always practical.

https://www.nolo.com/legal-encyclopedia/michigan-probate-shortcuts-32102.html

 

[Rosedala]

I THANK YOU ALL SO MUCH for your real kindness in devoting your precious time seriously studying my question to be careful to give me your responsible answers! I appreciate this enormously!

I do have a proper Will and Revocable Living Trust plus all the other accompanying documents to cover all sides of this matter. I also have inside these 2 documents my designated charities (who aren't going to fight among them, lol!)

As to my inquiry about how to designate an IRA and Annuity, I realize that a proper way is to contact the Probate Court in my State so I can think what to do after I learn what my options are. THIS, was the greatest advice from all of you!

I also mentioned not being happy with my estate attorney and that I hated to have to start a search for a new one. However, inspired by the diverse but sensible advice I received from all of you, I feel I'll accomplish this soon so I can leave this world with a smile and not with a question mark. lol!

Again my deepest gratitude to all in this thread! Bye...

 

[OldShooter]

... so I can leave this world with a smile and not with a question mark. ...

Thank you. That may be the most eloquent phrase that I have ever read on this forum.