Trusts
 

First marriage. 47 years. One adult child. Mortage. After we both pass our child is listed as the beneficiary on our investment and bank accounts. Quit Claim Deed includes our child. Our will shows everything going to our child. Our child is our POA. Living will is basically DNR.

Don’t know what we may be missing. Without bringing up any extenuating circumstances - do we need a trust?

IANAL, but having joint ownership with your adult child exposes you, and him potentially to on another’s liabilities. If you want to keep it simple, it seems a Ladybird deed might be better, and just today a thread started on the subject.

Trusts cost money to set up, but allow you to anticipate some future possibilities- does your son pre-decease you heaven forbid, does he divorce/marry/have a child etc. A consult with an estate attorney could be enlightening.

Have a consultation with Amy Pittman and play it safe. Not that expensive and will help you sleep at night.

You need to consult an elder law attorney. Why would you trust what amateurs would say here?

We did use the Pittman office and found them to be thorough.

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.

See an estate attorney. I see several issues here. A trust can be of great value to its beneficiaries for various reasons.

Google is your friend, too, in discovering why and how.

:BigApplause:

Trusts
 

A trust protects you from your estate having to go through probate . All your bank accounts, life insurance and the deed to your house should list the trust as your beneficiary . The trust should include a transfer on death for your house to the surviving spouse. After the last surviving spouse passes the title would be transferred to the trust .

The main advantage to a revocable trust is to avoid probate and thus maintain privacy and speed up the transfer of assets. As a general rule, you put real estate and non-retirement financial assets in the trust. If you have substantial money in non-IRA accounts then a trust would be good to avoid public disclosure. Only 5 states allow "Ladybird" transfers, Florida being one of them.

One thing to think about is that if the child is on the deed, then they inherit the house at what they paid for the house which means they will have to pay capital gains on the house when they sell. If they just inherit the house then there is a step up basis which means no capital gains.

Consider a trust with a wrap around will.

I doubt that you benefit by it even though some lawyers will try to sell you on it. From what you say it seems you won’t save ennough assets remaining to put the rest of your estate in full probate process, except if you have a lambergini or two. I would check to see what the value of your remaining probatable estate is to be sure you are under the maximum level to avoid full probate process.

See a Florida attorney if you’re a permanent resident here.

Every lawyer will tell you you need a trust, but honestly, why would you want to complicate an uncomplicated estate? If you don't have a blended marriage with heirs strewn all over creation, or complicated business interests, I don't understand why everyone thinks they need a trust. Your plan of adding your kid to your deed is fine, it's just a minor complication if you sell, since you'll need his signature. A lady bird deed is better, but probably not worth messing with at this point.

Like you, the bulk of our estate passes directly to our kids equally, through beneficiary declarations. That gives them the money to immediately to handle the burial and household bills until probate settles and the house and personal property is sold. The will basically just covers the personal property, and there's not much of that to argue over, anyway. Nobody wants our china or wedding rings. They already have nicer vehicles. Why would we complicate things by throwing a bunch of household junk into a trust?