[retiredguy123]

Originally Posted by Blueblaze

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?

I totally agree. Another reason lawyers want you to get a trust is because, when you buy or sell property, you need to go back to the lawyer to revise the trust and to pay an additional fee. That is why they won't give you an electronic copy of the trust.

[ndf888]

Originally Posted by Spartan86

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.

Totally agree. There are a few scenarios that could make the OP and/or his family members vulnerable. I’d get a simple trust for the house only to avoid probate. You can also get your POA and living docs done while you are at it. It should not be more than $500-600. We had a great experience with Sham Shanawany.

[Eg_cruz]

Originally Posted by Jim1mack

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?

The thing that a trust can do is make your inheritance, creditor and predator proof.

We had a client who told his dad he wanted to get a divorce. He was filing for divorce. Two days later his father passed away. His father had everything in a trust because the inheritance was in the trust that his inheritance did not become part of the divorce as much as his ex-wife fought and fought and fought for 50% of the father’s inheritance, she didn’t get because it was in her trust so when people are talking about it makes it creditor and predator proof. It’s for the things that your child could be going through at the time of the inheritance. That’s what you need to think about.

[Eg_cruz]

Originally Posted by retiredguy123

I totally agree. Another reason lawyers want you to get a trust is because, when you buy or sell property, you need to go back to the lawyer to revise the trust and to pay an additional fee. That is why they won't give you an electronic copy of the trust.

I respectfully disagree at the top of my head. I can tell you three different scenarios with our clients. I’m not a lawyer, but I deal with the senior market. We had one where the son was filing for divorce when the father passed away at that time, the ex-spouse wanted 50% of the father’s inheritance, she didn’t get it because the funds were in a trust. Another was a brother passed away and his inheritance was going to the sister who was on Social Security disability had it not been in trust that would’ve thrown her off of her disability, but because the funds were in a trust they were able to give her a monthly Income off the trust and not disturb the Social Security disability. The last we had a person who was just finishing the final stages of the divorce when his mom died and so again the spouse went to try to get 50% of that inheritance because the divorce, even though they were in the final stage, it wasn’t finalized, but again because the funds were in a trust They were able to protect it.
It’s not always whether or not it’s an easy estate or if it’s a complicated estate or if it’s blended families or you’re leaving out a child it really a lot of times comes down to protecting the creditors and predators because you never know what your children could be going through at the time you pass so for their protection that’s where a trust comes in.

[Rainger99]

Originally Posted by RoboVil

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.

If your non-IRA accounts have TOD (transfer on death), they would be payable on death. They would not be publicly disclosed and would not go through probate.

Avoiding Probate in Florida.

I would say that 90% of people do not need trusts - but lawyers sure like to tell you that you do!