[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!

[manaboutown]

Originally Posted by Eg_cruz

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.

Those are good examples of what can happen. I have seen similar situations occur. They ain't pretty. Another is an heir/devisee inherits, then faces bankruptcy for one reason or another, or loses a liability lawsuit due to an auto accident or such. There goes what he/she inherited. A well written trust can protect the inherited assets within the trust from financial losses due to such occurrences. It can also be wise to put a spendthrift provision in a trust if warranted.

[Altavia]

Been through this multiple times. Life is full of unknown unknowns, twists and turns...

A trust can mitigate Florida probate complications (word selection counts). And make things easier on your survivors helping insure your wishs are executed.

The cost isn't significant relative to a substantial estate.

[retiredguy123]

Originally Posted by Eg_cruz

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.

You are explaining a situation where a trust is needed because the estate is complicated. But there are many situations where a trust is not needed, but the attorney wants to sell you a trust to make money. A trust is not needed in every case, but some attorneys will sell you a trust anyway. If you only have one heir, and simple assets, you do not need the hassle and cost of a trust. All I am saying is that you need to make an informed decision about when you need a trust and when you don't. It has nothing to do with the value of your assets. Don't blindly accept the advice of an attorney who is motivated to sell you a trust even if you don't need one. I have substantial assets, but I definitely do not need a trust, even though several attorneys have tried to sell one to me, just based on my assets.

[Rainger99]

Objective article on whether someone needs a trust.


When a Living Trust Might Not Be Needed

[Eg_cruz]

Originally Posted by retiredguy123

You are explaining a situation where a trust is needed because the estate is complicated. But there are many situations where a trust is not needed, but the attorney wants to sell you a trust to make money. A trust is not needed in every case, but some attorneys will sell you a trust anyway. If you only have one heir, and simple assets, you do not need the hassle and cost of a trust. All I am saying is that you need to make an informed decision about when you need a trust and when you don't. It has nothing to do with the value of your assets. Don't blindly accept the advice of an attorney who is motivated to sell you a trust even if you don't need one. I have substantial assets, but I definitely do not need a trust, even though several attorneys have tried to sell one to me, just based on my assets.

I was not saying the estate was simple or complicated
I was stating after the last spouse passes the Trust can protect your heirs from anyone or creditors getting any of the. Inheritance.
Whether you have one child or you have 10 children, it doesn’t matter if you pass away and the one child is receiving Medicare disability going through a divorce going through bankruptcy any of those situations you’re inheritance stays protected if it stays within the trust, if the inheritance is not within a trust, then the inheritance can become Part of any circumstance that the child’s going through again disability, divorce or bankruptcy.

The key is, how do you keep your inheritance once it’s being passed to your children or beneficiaries, creditor and predator proof that’s what a trust can do a simple will or just naming your child as your beneficiary does not give you that same protection
Again, I’m not talking about a complicated situation. It could be one child and the child could be going through something and lose part of an inheritance if it’s not set up correctly to pass to him.