One thing that Mr. Heiser had mentioned that some people fail to put assets into the Trust. And I can see that happening. I was fortunate to have an Elder Law Attorney who would help us put said items into the Trust, such as my real estate and stocks. But I have been dragging my feet on my checking account.
Last month I finally got my Dad [94] to put his assets into a Living Trust, otherwise it would be a nightmare at probate. It took some convincing as this was all new to my Dad. Finally me saying that the State would take a huge chunk in taxes once Dad passed got Dad's attention, we made an appointment :)
Great article. I'd like to add a couple of thoughts.....those "protect your $" free meal seminars although they may discuss trusts seem really geared to get you to buy an annuity (which is an insurance product & has commissions). You really need to carefully & cautiously vet whomever is sponsoring the seminar to get a bead on what their background is.
Also family needs to give careful thought as to how the costs of the trust are to be paid. Homes & land will still have insurance & property taxes, etc to be paid and it could be higher than that for an individual homeowner over 65. There could be new IRS filings to be done. Setting up stuff in a trust really to me needs a bank account with a funding stream to pay all the bills to & costs for the trust and an atty. or experienced advisor to oversee this. Turning things over to the various trustees or beneficaries is asking for a problem to happen...someone isn't going to do or pay for something that they don't actually own...... Ancedotally I've heard that about 20/25% of property tax sales are on living trust titled property. Also property held in a trust can be tough to get lending on or use as collateral. Trusts are invaluable & great with proper planning.
My dad set up a Revocable Trust and his two properties are in it. Your article states that banks will recognize the trust if the trustee becomes incapacitated. What documentation would they need to prove dad is incapacitated? The trust states 2 letters declaring he is incapacitated: one from his doctor and one from the agent. Would that be the proof?
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Weighing the Pros and Cons of a Living Trust
Last month I finally got my Dad [94] to put his assets into a Living Trust, otherwise it would be a nightmare at probate. It took some convincing as this was all new to my Dad. Finally me saying that the State would take a huge chunk in taxes once Dad passed got Dad's attention, we made an appointment :)
Also family needs to give careful thought as to how the costs of the trust are to be paid. Homes & land will still have insurance & property taxes, etc to be paid and it could be higher than that for an individual homeowner over 65. There could be new IRS filings to be done. Setting up stuff in a trust really to me needs a bank account with a funding stream to pay all the bills to & costs for the trust and an atty. or experienced advisor to oversee this. Turning things over to the various trustees or beneficaries is asking for a problem to happen...someone isn't going to do or pay for something that they don't actually own...... Ancedotally I've heard that about 20/25% of property tax sales are on living trust titled property.
Also property held in a trust can be tough to get lending on or use as collateral.
Trusts are invaluable & great with proper planning.