PSA: Wills vs Trusts

[Midpack]

Having acted a co-successor trustee for my parents Trust in 2018, and in my final weeks as successor trustee for my sisters Trust now, I’ve already had to learn a great deal about the workings of trusts and wills.

But if I was still grappling with what are the substantial differences, what each does and does not, and who should consider a trust and who can rely on a will - I would have welcomed this introductory primer. It’s well done IME and a great use of a half hour for anyone still not sure how to proceed.

 

[Quantum_Computer]

Having acted a co-successor trustee for my parents Trust in 2018, and in my final weeks as successor trustee for my sisters Trust now, I’ve already had to learn a great deal about the workings of trusts and wills.

But if I was still grappling with what are the substantial differences, what each does and does not, and who should consider a trust and who can rely on a will - I would have welcomed this introductory primer. It’s well done IME and a great use of a half hour for anyone still not sure how to proceed.

Agreed. I watched this a couple days ago. As with nearly all of the Erin Talks Money videos, it was very well done.

 

[RunningBum]

I would have liked to have seen more discussion about Transfer on Death being part of the picture.

 

[Midpack]

I would have liked to have seen more discussion about Transfer on Death being part of the picture.

Considering how broad a subject it is, I thought she did a great job of condensing it to less than half and hour. Wasn't meant to be comprehensive.

 

[EastWest Gal]

I would have liked to have seen more discussion about Transfer on Death being part of the picture.

I agree. All of our investment accounts (brokerage, IRA, Roth IRA) have designated beneficiaries which is TOD per Schwab, and won't go through probate anyway. It might be worth putting the house and its contents in a revocable trust though.

 

[RunningBum]

I have TOD on my house as well. Not all states allow this.

 

[pb4uski]

I would have liked to have seen more discussion about Transfer on Death being part of the picture.

She covered beneficiary designations a lot... aren't they pretty much the same thing? in my mind, TOD are for certain, unually non-financial assets, that don't or can't have beneficiary designations. I've see TOD for real estate and vehicles for the most part... can't think of anything else.

 

[RunningBum]

I guess it is. Wish withdrawn.

 

[pb4uski]

I agree. All of our investment accounts (brokerage, IRA, Roth IRA) have designated beneficiaries which is TOD per Schwab, and won't go through probate anyway. It might be worth putting the house and its contents in a revocable trust though.

I have TOD on my house as well. Not all states allow this.

We do as well. We have a TOD on our Texas home. More than half of states allow TOD or enhanced life estate deeds on real property.

22 states allow TOD on vehicles. In Vermont, you file a form and pay $35 and the give you a revised title that indicates the TOD. Then when the owner dies, you take the title with the TOD and a death certificate to DMV and walk out with a vehicle in your name.

 

[old medic]

I would have liked to have seen more discussion about Transfer on Death being part of the picture.

Unfortunately TOD doesn't work for RE in NC

 

[ncbill]

Unfortunately TOD doesn't work for RE in NC

RLTs work just fine for real estate here in NC.

RE purchased by a married couple is automatically titled as 'tenancy by the entirety'

And that creditor protection is preserved even after transfer into the RLT.

 

[old medic]

RLTs work just fine for real estate here in NC.

We are in the learning and planning stage. A friend lost his wife last fall and they had nothing prepared and dealing with probate now...

 

[MrButchie]

Having acted a co-successor trustee for my parents Trust in 2018, and in my final weeks as successor trustee for my sisters Trust now, I’ve already had to learn a great deal about the workings of trusts and wills.

But if I was still grappling with what are the substantial differences, what each does and does not, and who should consider a trust and who can rely on a will - I would have welcomed this introductory primer. It’s well done IME and a great use of a half hour for anyone still not sure how to proceed.

 

[MrButchie]

I have a question my estate is not very complicated, Pretty much 4 Iras 1 Trust and 1 brokerage account. If I die first everything goes to my DW If she goes first everything goes to me If we both go everything goes to the Trust which will be distributed according to the will. Can anyone see a problem with this the hole estate is about 2 Mil.

 

[marko]

Trusts are mostly necessary for complicated distributions or situations. For example, we have $X allotted for the support/care of my disabled brother but he is not to inherit as after his death, those assets go elsewhere.

We have three trusts to that end and he has three as well, that handle different distributions. Our other heirs receive two distributions: one immediately and a second one from assets left over after my brother's death.

With no heirs of any kind of his own, what we didn't want was for OUR assets to go to HIS charities and bypassing our nieces and nephews of DW's side.

 

[pb4uski]

I have a question my estate is not very complicated, Pretty much 4 Iras 1 Trust and 1 brokerage account. If I die first everything goes to my DW If she goes first everything goes to me If we both go everything goes to the Trust which will be distributed according to the will. Can anyone see a problem with this the hole estate is about 2 Mil.

Well first, you mispoke where you said "If we both go everything goes to the Trust which will be distributed according to the will".

If your will names a trust as the beneficiary when the second of you dies, then the asset goes to the trust and then the trust distributes it according to what the trust provides. Once the assets are in the trust the trust prevails and the will is moot.

It might be in your case the beneficiaries of the trust and the contingent beneficiaries of your will are one in the same so it might end up the way you describe.

You say "4 Iras 1 Trust and 1 brokerage account". Are you sure that the contingent beneficiary of the IRA is a trust and not individuals? Is the brokerage account owner the trust or you? And what does "1 Trust" mean?

 

[Gremlin]

Having acted a co-successor trustee for my parents Trust in 2018, and in my final weeks as successor trustee for my sisters Trust now, I’ve already had to learn a great deal about the workings of trusts and wills.

But if I was still grappling with what are the substantial differences, what each does and does not, and who should consider a trust and who can rely on a will - I would have welcomed this introductory primer. It’s well done IME and a great use of a half hour for anyone still not sure how to proceed.

I finally got a free moment to watch this in its entirety. This was so well done, easy to follow, and clarified a lot of my questions. Thanks again for posting.