How Large An Estate Do You Need To Justify Forming a Trust?

[@markoconnell804]

While the trust is great if used correctly in avoiding probate I find the most beneficial purpose of the trust is for protecting the assets during the grantors’ life time from the possibility of guardianship. Historically there have been far to many people suffering 100% loss of assets because of an unscrupulous guardian. Anything you can do to keep such a person out of your estate is worth the cost. I was surprised to not hear anything on this side of the grave concerning the value a trust adds during your life. Make a video covering this facet. If you become incapacitated now what happens?

[@keithmachado-pp6fv]

It’s important if you have a trust that all assets outside the trust have proper beneficiary designations. When my dad passed the house and other accounts were in the trust but some of my mom’s IRAs that he inherited were not updated. Even though I was the contingent beneficiary named, since he was the primary beneficiary, that eliminated the contingent and since he never updated his beneficiary, it went to his estate requiring probate (at the height of the pandemic when courts were closed). By the way I did probate myself without an attorney, at zero cost other than a small filing fee and got an EIN for the estate. It was quick and easy since there were only a couple of IRAs so I am glad I did it myself.

[@5metoo]

At 4:32 Paul gives example of a person with 5.5 million financial assets, with all assets being POD (payable on death) accounts, and how that person wouldn't need a trust. Then he adds the twist that the same person has a home, so he/she does a will to take care of the home via probate. But if you had all those POD assets, why not just do a TOD (transfer on death) deed for the house and still avoid probate, assuming your state has TOD deeds?

[@AlexandraNevermind]

Unfortunately not all states allow TOD’s. I looked into this and my state does not 😢

[@5metoo]

@@AlexandraNevermind - Understood, but many do and I don't think Paul commented on that for that particular example.

[@GlenMcDowellFarm]

I'd have to verify this, but I think a TOD might mean the heir doesn't get the stepped-up basis of the home's value, resulting in higher taxes if the property is sold by the heir.

[@5metoo]

@@GlenMcDowellFarm - No, that doesn't sound right. A beneficiary or heir automatically receives the stepped-up cash basis.

[@susanelizabeth2222]

Need a trust if you are the only parent of a minor child and have a house, car, and stocks. Living trust converts to a child's trust, otherwise child cannot get access to money until he/she is 18 under a POD.

[@mikeshaw4610]

The video was helpful and makes sense. However the one scenario in the middle with the person/couple that had 5.5million and the house needed to go through probate. If the house is jointly held does it still need to go through probate. My understanding is no.

[@LouisEmery]

Glad his channel got into my recommendations.

[@dls300]

Would you consider doing a KZbin video on hiring a Successor Trustee? I have a Revocable Living Trust and my 2 kids live out of state. And - they don't even balance their checking accounts. I know what I went through with my mother's Revocable Living Trust, and there's no way that they would handle that well! I have 1 bank and 1 Trust Company that I have considered to be the Successor Trustee, but how do I make the best choice? What should I be careful about? Would it matter if one were out of town 2 1/2 hrs. away (they are close to my attorney that did the Trust)? Thank you. Debby in Kansas

[@vw4x4]

"Everyone is on there best behavior" highly unlikely.... Specially the lawyer who wrote themselves into the will as the executor.

[@jonathandavidson2510]

curious why you didn't subscribe nefarious motivations to the lawyers who make several times more money setting up trusts than the lawyers who set up wills and go through probate. Bias there?

[@chuckbenenati5166]

Please address the need to have a bank account named as the estate of whomever dies name. This will be needed to deposit checks from life insurance policy's without a named beneficiary where the checks will be made out to "The Estate Of" decedent's name. We are running into this problem now. No beneficiary was named because it was a older policy and prior to the decedent's marriage to his wife ( surviver ) of 53 years of marriage.

[@michaelblazin4093]

The life insurance payment has to go through probate. The insurance firm will not issue a check to the estate. It will Issue check(s) to beneficiaries as directed by the judge’s order via approval of probate. Same thing occurs with annuities, IRAs, civil Service pensions, annuities. You cannot bypass probate except via a trust, beneficiary assignment. or pay on death instructions at the institution, all having to be set up BEFORE death. When an asset falls into the estate, it goes nowhere until a judge approves.

[@chuckbenenati5166]

@@michaelblazin4093 that's the way the check was written out. It can be deposited in a checking account named as the deseased estate and the executor, who is the signer on the account can than transfurr the funds to the survivors checking account. We have already received two policies checks.

[@5metoo]

@@michaelblazin4093 - Life insurance policies and IRAs require probate? Wut? Paul explained how IRAs that have beneficiaries specified do not. And my life insurance account has primary and contingent beneficiaries just like any POD account.

[@kd8199]

@@michaelblazin4093- is it the same in every state?

[@michaelblazin4093]

@@kd8199 I would expect so. Financial services firms, as pointed out several times on this channel, are leery of ad hoc processes. In their opinion they offer various, easy ways before death to document the owner’s wishes. After death, the owner is gone and so is the easy way out of probate. The most important element of the estate plan is the action after the plan. Take five minutes on-line and save months of delay and significant cost by heirs once you are gone..

[@Sandysue3975]

What if I only have a home that’s paid for and I have an only child who is autistic. Is a trust the way to go with him in mind?

[@Pushyhog]

hafta go to school for 6 months with a great teacher to watch this vid.

[@captainkrunch6372]

Is a Ladybird deed a taxable event, to my kids on the deed at my death?

[@SayconTalks]

Are trusts only for physical property, or can intellectual property be added to them as well?

[@john-or9cf]

You said exactly what our county fiscal officer told us at a seminar (we’re a small county in Ohio) and our attorney told us - all we have that’s applicable is a house and a car - everything else has beneficiaries…thanks for the confirmation.

[@5metoo]

And some states have TOD (transfer on death) deeds for houses and/or cars where you specify persons to receive the assets upon death.

[@ritazita1111]

Thank you for this information. For me it would have been helpful if you spoke slightly slower, as the info is a bit complicated if you are hearing it for the first time. Also, most if your audience is probably senior who comprehend differently.

[@americasestateplanninglawy1946]

Thanks for the tip. You could also in your Settings choose to watch it at 0.75 speed.

[@Max-nt7ho]

Or, you can watch the video as many times as you want, and stop the video at any point to take written notes.

[@5metoo]

@@americasestateplanninglawy1946 - Speed seems just right to me. I wish every KZbin spoke as clearly as you do. I rarely have to backup to see what was said.

[@dcrisp8888]

Oh dang I missed an important point…..oh yeah, I can rewind and play it again 😅 🎉

[@susanelizabeth2222]

I am going to have to unsubscribe. Your comment section is full of barely disguised commercial spam.

[@5metoo]

How can you survive being on the internet if you can't ignore what you don't want to read?

[@saythankyou111]

Those guys are trying to make money…ignore them👀

[@dirtyleg73]

Are "pour over" wills an important/needed part of a revocable trust? Are "pour overs" effective at getting assets, that hadn't been moved into the trust, included in the trust for purposes of estate settlement without probate?

[@michaelblazin4093]

Pour over provisions are backstops to defects in your trust funding process. Yes, the provision puts all deeded assets not in the trust into the trust. Since the provision is in the will, an approved probate process is necessary to implement the provision. Fund your trust before death.