[G.R.I.T.S.]

Originally Posted by Michael G.

My wife and I made out our will 5 years ago when we moved to Florida, and would
like to hear from someone that holds a trust in the estate of the pros and cons.

Cheers!

Agreed that you should seek advice from an attorney. We chose a trust even with only one heir. Probating real property going to a relative is uncomplicated but fee heavy. Trusts can help shield assets.

[diva1]

Originally Posted by retiredguy123

I agree that discussing this with an estate attorney is a good idea, and Amy Pittman is a good choice. She prepared my will.

But, most estate attorneys will tend to lean toward preparing a trust for you, and a trust is much more expensive than a will. A trust also requires updating when you sell or purchase additional assets. The main selling point for a trust is that you can often avoid having your estate go through the probate court system. If you have a complicated estate and multiple heirs, the trust can be a good idea. But, if you have a simple estate and only a few or no heirs, your assets can be arranged as "payable on death" and avoid probate even without a trust. That is what I have done. Also, I have personally handled two probate estates for deceased relatives, and it is nowhere near as complicated as some attorneys claim. I would suggest talking with an attorney, who will meet with you for free. But, before agreeing to go with a trust, you should fully understand how it works for your estate, and whether or not it will be advantageous for you. Good luck.

A trust does not require updating if you acquire new assets. You simply put/title the new asset in the trust. The best thing about a trust is the avoidance of taxes by those who are it's beneficiaries. But please do go see an attorney.

[retiredguy123]

Originally Posted by Yvonnebang

Could you kindly share the options re: "there are several ways to transfer property ownership at death without having a trust." ?
Also, would it be different in Florida and NY?
Thank you in advance!

See posts 7 and 8.

I don't know about New York, but, in Florida, a title company can prepare a "lady bird" deed for about $200, where you can designate a beneficiary who will automatically become the property owner when you die. I would ask an attorney and/or a title company to explain exactly how it works. Some states allow a "transfer on death" deed, but Florida doesn't.

[SusanStCatherine]

I agree, the best advice is to hire a lawyer, preferably a certified (state or national) elder law attorney. If you don't like the initial consultation, continue until you find one you trust. I hired the fourth one since the first three didn't know some basic information, which I had researched beforehand. Trusts are heavily pushed because they generate lots of $ for the lawyers. A trust is not necessary in many cases.

[CFP James]

Originally Posted by vintageogauge

There is a lot more to a trust than just the transferring of assets. If something happens to you as a trustee the successor trustee simply takes over and continues as always handling affairs as always. There is asset protection from certain liability claims, protection from yourself if you have diminished mental capacity as it's very easy for the successor to take over, it goes on and on. Most assets can be in the trust and you don't have to update the trust itself, just place your assets in the trust instead of simply your name. There is so much more to it and well worth getting legal advice.

Great Point!
Both my children could take over responsibility of my Trust in the event of illness. I have experienced families not being able to assist parents in financial matters and it is very time consuming for children living outside of Florida.
I never have had to update my Trust but did create a new one after becoming a Florida resident.
Meet with an Estate Attorney and good luck.

[SusanStCatherine]

There are many kinds of trusts for various purposes and it may even be possible for one to be created and funded upon your death if written into your will. We had this in another state when our children were minors.

I have found that a trust is pretty much necessary if you have out of state property.

If you have an heir with special needs (especially if on public assistance) you would probably want a trust.

If you want to strongly control the distribution of your estate by someone you thoroughly trust to be a trustee, a trust is indicated.

A trust does provide some protections of money in the trust in certain cases.

[Jerry Leinsing]

Lawyers always recommend wills, more billable hours now and many more later. Lawyers make trusts; about same amount of work as a will but then they are not needed to settle a trust. Probate will take 1-1/2 years +/-. A trust can be settled in months or week depending how competent the trustee is and complexity. Worked on settling both instruments. Trust is much easier. My brother’s will read just like my mother’s trust. I learned from the lawyer and kept meticulous time sheets of every 6 minutes. I had well over 100 hours in this to keep lawyer time down and he still wanted 10 hours an $400 for him and 6 hours at $200 for his ‘paralegal’ Took 18 months no matter what according to the probate judge’s response to me. My mom’s trust was settled in 3 months. I didn’t need a lawyer.
Look up Florida Statutes-Probate and read about it. Easy reading.
In a nutshell, anything with assigned beneficiaries such as a bank account, Fidelity etc., insurance policies, don’t go to probate and don’t belong in a trust. So talk to Andrew Curtis. The trust does far more for you after you die than a will and costs far less now and in the end.

[SusanStCatherine]

FYI - You cannot put your individual retirement accounts (IRA, Roth, SEP, 401k) in a trust while you are living. However, you can designate your trust as a beneficiary.

[SusanStCatherine]

We got a Ladybird Deed at closing of our Villages home. It was not listed as an option on the settlement papers, but we asked and it was provided at no additional cost.

This allows our children to directly inherit the property upon our last death. It does not go through probate.

[SusanStCatherine]

ASSIGN DIRECT BENEFICIARIES

Based on my experience:
(I suggest you check with a lawyer)
On individually titled accounts, any asset that allows a beneficiary designation will go directly to the designated beneficiary(ies) upon death. Just show death certificate - it's as simple as that. These account designations take precedence over the will and do not go through probate.

Make sure all of your beneficiaries are designated and who you want to inherit.

[rjm1cc]

Originally Posted by villageuser

I am going through trust issues with my parents’ estate. My dad passed away, and my mother needs money for her maintenance cost. I was the one who pushed them to get a trust. One always reads how they are better than wills because of the probate issues. Well, that may be the case, but they sure cause other issues. I have learned a lot, in dealing with their trusts They went with a highly reputable law firm. Plenty of boiler-plate legal-speak, where one would think everything had been covered, but what it did instead is muddy the waters, where it requires a lawyer to fix. Yes, it may be revocable, but it is expensive to change. Sometimes I wonder if this whole trust thing is just another marketing ploy to make lawyers more money. I still think my husband and I need to do a trust, but we have learned what we want included, and how we want certain things worded so as not to make the same nightmare for our children.

By the way, I believe that asking an estate lawyer the question of what you should do is the same thing as asking a surgeon whether you need surgery or not. You will get a different response from a surgeon vs a natural-path vs any other kind of doctor. Of course, they are going to recommend the option that gives the option from their preferred field of practice. Get opinions from people who have had to deal with the results of a trust versus a will.

You need a reason for a trust and I don't think it is to avoid probate. You need to have a reason you do not want your beneficiaries to directly control the assets.

[manaboutown]

Originally Posted by SusanStCatherine

ASSIGN DIRECT BENEFICIARIES

Based on my experience:
(I suggest you check with a lawyer)
On individually titled accounts, any asset that allows a beneficiary designation will go directly to the designated beneficiary(ies) upon death. Just show death certificate - it's as simple as that. These account designations take precedence over the will and do not go through probate.

Make sure all of your beneficiaries are designated and who you want to inherit.

Totten trusts (POD accounts): What Is a Totten Trust? | Nolo

[rjm1cc]

Originally Posted by Debra Freeman

Go to www.FloridaBar.gov for Consumer Pamphlet: The Revocable Trust in Florida. This will get you thinking prior to seeing a lawyer thus saving some money as the clock ticks the minute you speak to an attorney. You def want an attorney no matter what decision you make.

On line only. Try Consumer Pamphlet: The Revocable Trust in Florida – The Florida Bar
You can print this or make a PDF and save to your computer. Good summary and mentions a few things to check.

[rjm1cc]

Several mention of Lady Bird Trust. Yes this could be the answer but best I can recall the person inheriting the property may have some say over it disposition if you want to sell. Be sure to investigate if the deed limits what you can do with the property while you are living. If the property is in Fl, your homestead, and going to your children I think the best way to handle the property is in the will as some homestead protections also pass to the children. I would lean toward an attorney who is in the Elder law group and experienced in trusts and Fl law.

[SusanStCatherine]

Creative Estate Planning

Based on my experience:
(I suggest you hire a lawyer)

I handled my parents estate planning under the advice of a highly qualified lawyer (years ago not in Florida).

My parents held many cash-type assets jointly. (No real estate as they moved to a CCRC).

I was told due to marriage, each parent individually owned half. I moved assets to all be individually titled and split assets 50%. I assigned direct beneficiaries of my two sisters and I to inherit. When my father predeceased my mother, we directly inherited half of my parents worth and it was no longer subject to be considered an asset in cost of long-term care assistance for my mother. Turns out it wasn't needed anyway as my mother passed nineteen months later. Of course we were trustworthy children who held the money aside if needed. My parents were in their upper 80s at this time and into their no-go years. Everything was easy, I just provided death certificate - no probate. Direct proportional distribution - no work whatsoever except providing death certificate.

If my husband and reach our no-go years together, we are already set for this separation. But we will seek legal advice to protect our assets for long-term care situations, perhaps a trust vehicle may be indicated at the time. I believe there is a five-year look-back period for assets. Also gift-giving patterns are considered and allowed.