Quote:
Originally Posted by rjm1cc
The answer depends on what state you live in. The purpose of a trust would be to avoid probate and the related costs.
One way to avoid probate is to have all your financial account list your child as beneficiary. These avoid probate. So, what other assets do you have. Probably Car, home furnishings etc. Your state laws are important. In Florida there is Summary Administration. Your home, if a homestead property and left to your child would avoid formal probate. Two cars would also avoid probate. Your remaining assets passing under you will would have to be under 75,000. Read up on Fl Summary Administration and then see if your state has something similar. By the way the power of attorney is null and void at your death.
|
A lot of retirees in The Villages have financial assets that can easily be designated as POD (payable on death) that will avoid probate. Their only significant non-financial asset is their house, which can be deeded as a ladybird deed and also avoid probate. So, for many retirees, they do not need a trust. But lawyers love to sell trusts because they make a lot of money on them. They make money when they prepare the trust and also when they review and revise the trust.
I had a friend who passed away a few years ago and his only heir was his son. He had a trust that was about 2 inches thick, which accomplished nothing because the son had full knowledge and control over everything my friend owned.