Earl E Retyre
Full time employment: Posting here.
- Joined
- Jan 1, 2010
- Messages
- 621
We have been discussing the pros/cons of revocable living Trust vs TOD and trying to come up with a compelling reason (in our case) to go with the Trust and I think I may have finally come up with one. I wanted to validate my understanding. Please let me know if my understanding below is correct?
If we create an Earle Retyre Family Trust then when we pass, daughter can simply keep all the assets in the Trust under the Earle Retyre Family Trust name (and can only pull money out if and when she needs it). So, the majority of the assets will not get comingled with her other accounts. The Earle Family Trust and its assets live on. Of course, legally, she can pull all assets out. But if we ask that she doesn't do that then this is an easy way to not comingle her assets. OTOH, I believe if we go the TOD route then, by definition, she has to move the funds in my current accounts to accounts in her name. Is that all true?
The advantages of not comingling could come into play in scenarios like (a) protection if she gets a divorce so her Ex does not get these assets and (b) when we pass she could set up a Spendthrift Trust for Son in her Will to set aside some money for him.
If we create an Earle Retyre Family Trust then when we pass, daughter can simply keep all the assets in the Trust under the Earle Retyre Family Trust name (and can only pull money out if and when she needs it). So, the majority of the assets will not get comingled with her other accounts. The Earle Family Trust and its assets live on. Of course, legally, she can pull all assets out. But if we ask that she doesn't do that then this is an easy way to not comingle her assets. OTOH, I believe if we go the TOD route then, by definition, she has to move the funds in my current accounts to accounts in her name. Is that all true?
The advantages of not comingling could come into play in scenarios like (a) protection if she gets a divorce so her Ex does not get these assets and (b) when we pass she could set up a Spendthrift Trust for Son in her Will to set aside some money for him.