Will vs Trust

[windjammer]

I'm getting to the age I need to be looking ahead. I have no will. I have no family problems at all.

When I die, I want everything to go to my wife. When she dies, we want everything to go to our two sons .

I talked to an estate planer today. He advised me against a will. He told me to go with a trust.

He said it would cost around $3000 to get a trust drawn up. I don't know anything about either.

To those of you that are knowledgeable, what are the differences? Does $3000 sound high? It does to me.

 

[BLACKHAWKNJ]

I think you should talk to a lawyer on this one.
The laws vary somewhat from state to state. AFAIK trusts are for money-a "trust fund", wills
cover property, bequests, etc.

 

[jrm53]

We paid 2250 in 2004 to get a trust done just the way we wanted things to be done after we are gone. This was done by the top trust man in NW Ar.

 

[straightshooter1]

Let me make sure I understand. You talked to an "estate planner." Does that mean he wasn't a lawyer and only does estate planning? Or, said differently, the product he sells is, generally, trusts?

There are so many possible variables, that it would be impossible to answer your question even if I was a TN lawyer rather than a FL lawyer.

What property, personal and real, you have, stocks, bonds, IRAs, all would be important to know about to give you an answer.

Does your state have inheritance taxes, and, if so, what is the minimum value of an estate to trigger the statute?

This person may very well be giving you great and correct advice. Or, he may be selling you something you don't need.

For example, in my case, reciprocal wills with contingent beneficiaries will do the job for my wife and me. But, I am sure our situation is different than yours.

I would talk to a lawyer who does Wills and Trusts. Then, if I wasn't sure, I'd talk to another lawyer who does Wills and Trusts. The cost of a consultation is really cheap, especially compared with making a serious booboo in trying to dispose of all you have after you pass on.

Some banks, at least around here, still do simple forms of trusts for customers for almost nothing. BUT, the bank wants to be the trustee.

That may or may not be what you need.

Please, spend the few bucks and talk to a lawyer.

Bob

 

[VM]

I would talk to a lawyer who does Wills and Trusts. Then, if I wasn't sure, I'd talk to another lawyer who does Wills and Trusts.

+1

 

[feralmerril]

From everything I read living trusts are the way to go. Your man sounds high.

 

[Iggy]

My lawyer created my trust and my wife's. He said that in our state, a Will can be challenged, and if that happens, it will have to go through probate with the related costs.

In that scenario, a judge decides who gets what instead of what you desired, and the opposing lawyers get a healthy cut before anybody else.

A trust by-passes that step. Do consult a good lawyer that deals in these matters whichever direction you choose to go.

The complexity of your situation and your wishes will dictate the cost of having a lawyer set up your trust.

If you have a sizable estate or complex financial entanglements, a good lawyer is worth every penny.

There are some real intriguing avenues of approach to passing on your estate within a trust, with some nice benefits if your lawyer sets things up properly..

Bein' an old LEO, I have always had some good natured animosity towards lawyers, but a good on on your side is really nice when you need him .Nuff sed!!

 

[Capt Steve]

I'll wager your "estate planner" will soon be making recommendations, complete with a heavy sales pitch to invest your money for you as part of the Trust package. Yes, $3K is high, in fact very high for average folks. As noted above find a good attorney who specializes in this type of law.

 

[HOUSTON RICK]

I have made a good living the last 20 years off of taxes and probate law in that order. A trust is an artificial legal person that is maintained and taxed and generates fees once funded. A will lies dormant until you need it and can be used to create a trust when and if you need it. The Federal Estate Tax is going to be back in all its historic fury soon, so if you have over a million bucks in total - that will be a major concern. Talk to a lawyer who specializes in probate and taxes and explore all the possibilities, estate planners are too often one-trick ponies. Hope you don't need these plans for a long time.

 

[Bent Barrel]

What Houston Rick said|||||||||||

 

[Old 44 Guy]

Houston rick is right. Get a living trust made up by a qualified lawyer. I did & saved a bunch when my wife died.

 

[socal s&w]

I agree, a lawyer (unfortunately) is the way to go.....and the way to go is probably a living trust.
The fee is pretty high, I had ours done in California, which is high for everything, at around $1,100 plus or minus a $100.
It's actually a great process to go through as it will force you to take a look at what you have with respect to savings, valueables, home, insurance, 401k's and the like. It also will take some time to compile all of the information as there are some items that will require special attention to get such as balances from old accounts and such.
I too am hopeful that you won't be needing this for quite some time.

 

[montezumaz]

My lawyer says in this day and age you need both a will and a living trust. Plus you should have an Advanced Directive filed with your physician and medical center (hospital).

 

[CJ]

Like everyone else recommends, talk to an attorney, not an estate planner. $3000 sounds awfully high unless your estate is quite complicated.

I just recently within the last year had my attorney write a new will, new P.O.A., Advanced Health Care Directive and a new living trust. Total cost, if I remember correctly, was around $950. Shop around.

 

[Steave]

It's just a cryin' shame so much needs to be done to keep one's own money from the government.

 

[Spotteddog]

Unfortunately depending on who, what and where your dealing with it, you may find a sealing wax ring imprint from the pontiff in addition to the above may not be enough?
Trust me!

 

[HOUSTON RICK]

Spotteddog, nothing is for certain, but if you have it done by someone who has defended these documents in probate court for years, you will get as close as possible.

 

[uzisandfloozies]

well, $3,000 IS a lot of money.

naming BENEFICIARIES on all financial accounts will trump even a will.

your wife will automatically inherit everything if you die first, without her having to pay any estate taxes.

so only in a situation where you both die at the same time, would named beneficiaries or a will be necessary.

since spouses automatically inherit everything if there is no named beneficiary, you can make any adult children as contingent beneficiaries so that they will inherit your assets in case you and your wife die simultaneously (thats assuming that your kids are from your marriage to your wife..)

once all your financial assets are taken care of, you should name a "power of attorney" to make decisions for you in case you get incapacitated, and you can make a simple will (online sources like legalzoom.com) to simply list who you would like to inherit your non-financial assets, like guns, collectables, etc.

save yourself some $$!!!

 

[Amici]

Originally posted by uzisandfloozies:
naming BENEFICIARIES on all financial accounts will trump even a will.

Really? Define "financial accounts." And what "financial accounts" have "BENEFICIARIES," capitalized or otherwise? Trusts and insurance policies, for example, have beneficiaries; bank accounts do not. Note also that an apparent conflict could provide sufficient basis for a challenge in probate court.

"your wife will automatically inherit everything if you die first..."

Not if there were children, she won't.

"so only in a situation where you both die at the same time, would named beneficiaries or a will be necessary."

So simple! Never drive together, fly together, get on a boat together or live together. Wouldn't want a house fire or gas leak to make that pesky will necessary.

since spouses automatically inherit everything if there is no named beneficiary, you can make any adult children as contingent beneficiaries so that they will inherit your assets in case you and your wife die simultaneously (thats assuming that your kids are from your marriage to your wife..)

STILL wrong. See above.

once all your financial assets are taken care of, you should name a "power of attorney" to make decisions for you in case you get incapacitated, and you can make a simple will (online sources like legalzoom.com) to simply list who you would like to inherit your non-financial assets, like guns, collectables, etc.

save yourself some $$!!!

Riiiiiiiiiight. And you children will spend many times that trying to straighten out the mess you left with your home-made, on-line "will."

 

[The Highlander]

Let me preface my statements by saying I'm a licensed stockbroker, licensed financial advisor, and licensed insurance agent (annuities, etc.) in Tennessee.

Houston Rick is the correct one here, but I disagree that you need a lawyer to establish a trust. Lawyers are required, but they have little knowledge of the investment side of the trust. Financial Advisors know the investments, but not the legalities. Reputable large firms have lawyers on staff that do nothing but trusts, and they do it in conjunction with the financial advisor. You essentially get two people with differing expertise, both sides of the coin as it were, with one meeting.

I recommend finding the best financial firm in your area, one that you have knowledge of and comfort with. If you aren't sure where to look, I highly recommend Edward Jones Investments. And just to clear your mind, I'm not accepting clients, and I don't work for Edward Jones Investments. I just feel they are one of the best in the industry. They are conservative in their approach, they were called old-fashioned and hidebound prior to the latest snafu. But a very old, respected firm.

On the wife, children thing, I BELIEVE I'm correct in saying that if you die intestate in Tennessee, your wife will receive everything that doesn't list a beneficiary. Houston Rick or others, please correct me if I'm wrong.

As to listing beneficiaries and contingent beneficiaries, most financial accounts other that bank accounts allow this. A good Financial Advisor will require it. Stock accounts, bonds, mutual funds, 401k's, IRA's, etc. all have bene's. It's ok to not list your wife in Tennessee, but be aware that she WILL have to sign a document stating she knows she isn't the bene. Even if your child is.

Good luck!

The Highlander