[retiredguy123]

Originally Posted by Boomer

EEK!

“Penny-Wise and Pound-Foolish”

If I were you, I would not trust such an important financial maneuver to an online site.

Spring for an attorney and make it one who specializes in real estate. (Also, as someone else in this thread mentioned, the sheer volume of info gathering that site is doing could mean who-knows-what kind of doors are opened.)

Too often people make snap decisions about the deed to their house because they think they are doing the “smart” thing.

(Another classic example of penny-wise and pound-foolish is when an owner puts the heirs’ names on the deed.)

Boomer

I agree with seeking legal advice regarding changing your deed. But, I don't agree with paying thousands of dollars for a revocable trust that you don't need. A friend of mine passed away last year. He had a trust document that was almost 2 inches thick, and during the time I knew him, he spent more than $5K preparing and modifying the trust. Every time he bought a new asset, he would call the attorney and pay him a fee to modify the trust. When he died, his son, the trustee and only heir, came to The Villages. He cleaned out the house, sold it and everything in it, and went home within a few days. I think the trust was a waste of money. I am just saying, that when an attorney suggests a trust, ask questions, and buyer beware.

[Dilligas]

Originally Posted by caseycasebeer

I am not an attorney, but was interested in how to convey title to my residence in The Villages to my son (upon my death). If possible, I wanted to avoid the hassle and expense of Probate.

My online research showed me something called an “Enhanced Life Estate Deed” (aka: “Lady Bird Deed”). Florida is one of five states that offers such a deed. It can be done online, avoids Probate, gives the “Grantee” life tenancy, and all the benefits of ownership (including Homestead Exemption benefits). At $60, it sounded pretty good, but I would invite other’s opinions.

Once you complete the simple worksheet, it is emailed back to you. You then have the document notarized and signed by two witnesses, then take it to the Clerk of the Court’s office (at Morse & Hwy 466) to have it recorded ($27.70). Amazingly simple.

The site I used was:
Right of Survivorship Deed | DeedClaim

Best to see an attorney that works in wills and trusts. We put all our assets in trusts with our kids as co-trustees. When we pass, they become owners without probate, and can liquidate anything easily.

[jjombrello]

I agree. A trust would be a good solution. See Dean and Dean for help.

[Boomer]

Originally Posted by retiredguy123

I agree with seeking legal advice regarding changing your deed. But, I don't agree with paying thousands of dollars for a revocable trust that you don't need. A friend of mine passed away last year. He had a trust document that was almost 2 inches thick, and during the time I knew him, he spent more than $5K preparing and modifying the trust. Every time he bought a new asset, he would call the attorney and pay him a fee to modify the trust. When he died, his son, the trustee and only heir, came to The Villages. He cleaned out the house, sold it and everything in it, and went home within a few days. I think the trust was a waste of money. I am just saying, that when an attorney suggests a trust, ask questions, and buyer beware.

Whether to do a trust or not depends on the circumstances — like almost everything else in life — and death.

A trust sure can make the surviving trustee’s work easier because everything is clearly spelled out. The trust is the driver. The trustee just follows directions. A trust can also provide a certain amount of privacy re. assets of the deceased.

But there was a time, maybe 30 or so years ago, in Ohio, when some slap-dash, boiler plate, trust writing companies sprung up and were doing high pressure sales routines…..

I remember being shocked when I knew one of the people selling those trusts. He was not an attorney, but he sure was a natural salesman and knew a lot of people. In fairness to him, I will cut him a little slack because he was actually a pretty nice guy, was very young at the time, and might have thought he was helping people…..or convinced himself he was.

I don’t know what happened to those “trust” things. A lot of naive people bought them — and I think sometimes some naive people sold them.

Boomer

[SusanStCatherine]

We consulted a lawyer who recommended the ladybird deed to us. He was going to charge us a few hundred for it. But at closing the Villages titled it for us that way. I personally would not handle it the way you described. I would want to make sure a qualified person handled it due to its value.

[rjm1cc]

Originally Posted by retiredguy123

The problem with leaving the house to your child in a will is that you may not be able to sell it without going through probate. When my mother died and left her house to me in her will, I had to go through probate because I could not sell the house. The closing attorney/title company would not accept a will as proof that I had clear title to the house. How do they know that the will is current and valid and that there are no other heirs unless the estate is probated?

Yes, you could have a title problem with the title company when you go to sell.

[rjm1cc]

Originally Posted by JoelJohnson

Correct me if I'm wrong, but if you put your house in a trust, doesn't the person that gets the house have to pay taxes on the original price of the vs the selling price (if they sell it?). If they inherit it, the property gets adjusted to current value.

Good question. My guess is the assets in a revocable trust get a stepped up basis at the death of the person who created the trust. I think I am correct on this part. If the trust is irrevocable you do not get a step up in basis. I think I am correct but better check if this is important to you.

[retiredguy123]

Originally Posted by rjm1cc

Good question. My guess is the assets in a revocable trust get a stepped up basis at the death of the person who created the trust. I think I am correct on this part. If the trust is irrevocable you do not get a step up in basis. I think I am correct but better check if this is important to you.

A typical living trust will be revocable until the trust creator dies, and then it becomes irrevocable. But, the trust beneficiaries will still get a stepped up cost basis for the house.

[SusanStCatherine]

IMHO - Pay for legal advice, it's worth it.

For those people advising others what to do instead of providing general information, please take into account everyone is different.

That being said, I can tell you what I learned for my personal situation. All of our assets are in financial institutions and our house. Designation of direct beneficiaries on all accounts is the easiest, fastest and least expensive way for your heirs to inherit. Just present the death certificate to the institution and that's it. The institution pays out directly to beneficiaries at the percentage designated. Ladybird deed has house go directly to beneficiaries as well.

I believe Qualified money like IRAs and 401k cannot be placed in a trust and that is where most of our $ is besides the house.

We still have a pourover will for anything not designated. Autos in FL cannot be titled to have beneficiary. I think my children can distribute our remaining estate without going through probate.

A trust costs $ to set up. Everything that can be titled must be titled into the trust. The trust must be administrated. The trustee has all the power.

If we get anywhere near to when a nursing home is needed, we may need to redo our current simple estate plan.

A trust is indicated if you have real estate in a different state. Also a trust is indicated if you have very specific instructions on how and when you want your estate to be distributed.

So a ladybird deed can be just the thing you may need for your estate planning.

[lindaelane]

The attorney who did you will for you can arrange the lady bird deed.

I had the attorney who did my will arrange my lady bird deed. In my case, the charge was quite low (I believe his office routinely does these and it was a matter of sending me the correct paperwork.)

Yes, my attorney advised, such a deed avoids probate.

[Pommom91]

I had the use of a free attorney in Florida through the UAW. He prepared a ladybird deed and a letter of instruction on how to have it recorded and returned to me. I feel good that my property will not have to go through probate upon my death.

[gettingby]

My aunts ladybird deeded their home to my wife and I. Had our family attorney set I up, seems it was around $350. After my aunt passed title was transferred immediately. Oh, I’m from Florida.

[Carole clausen]

See an attorney.

[QPB0078]

I did a lady bird deed to my brother. I used an attorney Trotter and Soulsby. It cost me 500.00