Does a Living Trust REALLY Avoid Probate?
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- Опубліковано 27 чер 2024
- In this video I discuss the circumstances surrounding when someone, or a couple, creates a living trust to avoid the attorney and court-involved probate process at death, but then when they pass away, a probate is still required.With a living trust based estate plan, the concept is create your living trust instrument which dictates who inherits from you, then transfer your assets from your name to your trust, and then when you pass away, those assets can be transferred out of your trust to your beneficiaries without the expense and delays of probate.
Share in the comment section below if you had an experience when a spouse, parent, or grandparent passed away with a living trust. Let me and the viewers know whether that living trust enabled the family to completely avoid probate, or whether there was some issue involved in the estate settlement.
Chapters:
0:00 Wills versus Living Trusts
1:12 When Probate Necessary
1:35 Comment Below
2:11 Reasons Requiring Probate
2:45 Probate Can Be Simpler
3:53 Share Your Experience by Commenting
4:46 My Situation
Link to website: aeplawyers.com/
Link to Consultation: aeplaw.cliogrow.com/intake/71...
My mom was last to die (10 years ago) and my folks had a revokable living trust. I was the successor trustee and one of the beneficiaries of the trust. It was fairly straightforward and worked well. No probate was required.
In your family’s living trust, was the trust added to your homeowners insurance?
@@Improve.Your.Finances Those rules can vary by state. You should just contact your HO insurance agent and let them know the home is held in the trust and ask them what changes are necessary in your state.
The need to fund the trust is paramount !
My wife’s parents and aunt both had trusts but nothing was titled to the trust. It took as long as probate to settle the estates. We all thought the trust meant probate would be avoided. The lawyer should have followed up with them and also the investment advisor to make sure they had titled everything properly.
Thanks for your feedback which I believe will help others who read it.
Was there not a Pour-Over Will?
@@brandonwiese4615 Would one simply include the trust as a beneficiary to the assets? This is a very easy way to get the assets in the trust upon death and doesn't involve ANY paperwork and most financial brokerage account let you do this online in 15 seconds. this may not apply to real estate though. Thoughts?
Thanks for this video! My mother passed on the 31st with a revocable living trust with her retirement and the property she owned with my stepdad in an LLC. When my brother told me that the estate needed to go into probate, everything I read said otherwise, including a pamplet from the Washington State Bar Association. What I think you are saying here is that the property may need a title change, as my stepdad will be buying out our portion of the real estate assests. You saved a potential conflict with my brother and I can't thank you enough!!!
I set up a trust for my client. He never added his $1700 Citibank checking account into the trust and his successor trustee son had such a fight with the bank. We had to file a Small Estate Affidavit probate (which is thankfully pretty simple and quick) to get access. Even then, the bank refused it because supposedly the account was domiciled in California while my client died in Oregon (where we filed the probate). They demanded a California probate. Eventually they relented when the son sent a demand letter, but what a pain!
Thanks for the feedback Chris.
Best thing is to give everyone what you want to before you die. And in Texas you do not have to list what you have as your assets. Make sure your assets are locked up the minute you die no matter if you think you can trust any of your kids. Let the person you put in charge stay in your home so that nothing is stolenn till probated and distributed.
I cant agree with this statement more. I am the beneficiary of my Parents trust and it labels me as I inherit everything inside the home and all proceeds from the sale of the home. The trustee tells me I have. No right to tell him that I do not want. The housekeeper/ house manager in the house. Because I am afraid she will remove pieces of art and other things , Which has already happened something has been removed And I don't feel its right since every time I'm there and my father wants me to have something or his grandson she yells at us not To take anything from the house. My father is 91 years old has advanced parkinson's is blind and has some memory issues settling in so he doesn't know what day it is most of the time and he can be easily manipulated. So I feel that nobody should be allowed in the house other than me and unfortunately the power of attorney trustee, executor of the estate ..The Housekeeper should be removed and not allowed in the home. Do I have that right as the beneficiary of that trust to remove her from that home?. I should mention that the POA , executor and the trustee Are all the same person.
Thank you for this helpful video!
Mom was 99 when she died in mid April of 2022 at a nursing home in Illinois. She and dad, who died at 74 at home of cancer in 1996, had a small estate with a revocable trust, which avoided probate and was ended and dispersed before the end of 2022 by my sister and me as trustees with assistance from an estate lawyer. Now my sister and I get to pay individual income taxes, which should have lower tax than a trust. The bank accounts, CDs, life insurance, and lock boxes had our names as beneficiaries, co-owners, or PODs. Real estate was in the trust.
In your family’s living trust, was the trust added to your homeowners insurance?
Thank you. Great information.
Thanks Jane
Thanks so much for this video, this one is just as helpful as all your others. One question...can you transfer your LLC to a revocable trust by way of an assignment?
Only Guarantee is Death & Taxes. This should not be this difficult. Have mercy 🥺. Remember, Ben Franklin wrote, "Our new Constitution is now established, everything seems to promise it will be durable; but, in this world, nothing is certain except death and taxes." The taxes don't end with death. Who is benefiting from these perpetual taxes? It certainly is not the beneficiaries/heirs.
Thank you Paul 👍🏼 General question here if u know. If a trustee is an insurance salesman, that sells a policy to the trust, is that a breach of trustee laws? ( gaining income from sales of policy?) is that conflict of interest?
Thanks for all your videos. A question I have is the following: Can I simply include my revocable living trust as the beneficiary of my financial assets (brokerage accounts, investments, etc.) upon my death instead of having the asset directly owned by the trust. This seems very easy as updating the beneficiary information takes a few seconds while transferring ownership takes paperwork and more time? Am I missing something or this the way to go? It's a joint trust so my spouse would still control the asset (in the trust). What are you thoughts on this?
I spoke with an attorney that said the cost of a will and probate are almost similar to setting up a trust, so it doesn't matter which you choose. Furthermore, the attorney said trusts often miss other assets and the process of retitling property is difficult especially when there is a loan or mortgage on the property.
Apparently in MI when the spouses die within a specified period of time, the survivors trust had to be probated. When someone does in Michigan they become a Michigan resident.
Disappointment is certainly felt.
All accounts, stock, etc were frozen because survivors weren’t co owners or individually named at TOD beneficiaries.
The worst part is the endless forms, phone trees, and waiting for people to return calls.
I also m going through something similar in Michigan asall my husband passed away in 2022
I actually have a question for Paul… does the exercise of a Power of Appointment granted in a Trust force a probate to take place, since those are exercised via a Will?
My parents created a revocable living trust with a pour-over will. My father died last month and my mother does not understand any of this. I found out the residence is not in the trust. I'm still trying to figure out what assets are in the trust. I don't know when I'm supposed to do a 1041 return. I really don't know what I'm doing. My father said he had everything in order, but he would never share or explain anything to me. Every time I brought it up he told me not to worry about it. Well now it's happened and I'm completely lost. I just want to protect my mom. And I'm the sole beneficiary of their estate when she passes. My father did everything online and did not show my mother how to do anything. And now we don't have any access to the accounts.
If your mother is still alive then everything passes to her in a community property state unless there was separate property. Unless the trust instrument specified an allocation to a b trust there is no 1041 requirement. Even then there may be no filing required depending assets allocated
The short answer is read the trust if it’s to confusing call your attorney
If you don’t have access to accounts take a death certificate and a copy of the trust to the bank they will unfreeze the accounts.
Keep in mind this varies state to state your better off talking to your attorney
Since your parents were married and as long as both names are on all properties and assets....are hers by survivorship rights.
your mother gets certificate of death. Takes it to register of deeds having that put solely in her name. Then she needs to get TOD or Lady Bird Deed in your name. Everything is hers until death. Them the deed becomes valid in your name upon death.
@@gracewins7318 Recent death in Texas with extended family member. Everything froze and 3rd wife must share 1/2 with all kids from all wives or have all kids sign off to relinquish their rights to fathers assets. Texas still has the half goes to wife and half to children law.
There was only a will and the lawyers said the will was not legit. Was missing 2 witness authentication. Think there was only one.
My family stole my inhertance. I was left a TrustFund. Its still going on. Teresa Miles.
Isn't there anything you can do to stop them? Since it's your Trust set up for you?
What does that mean
2 very small checking accounts inadvertently did not get retitled and had to go thru probate which was long a d expensive.
We had that, we just abandoned those accounts, stock accounts. About $9k. Would have cost more to probate. IMHO you don';t hae to probate low value things. JMO.
Lawyer wrote my husband and I each a trust. My husband passed and now I need to know how to get our home, title in his trust , into my trust?
Hey. My wife is getting a inheritance from her grandma the trust is in probate it's been about a year and we haven't heard anything. Supposedly she's getting 1/10th of her grandparents estate and she was told they had millions. What should she do to make sure she gets what was left to her. She's getting worried
Can you use TOD (Transfer on Death) authorizations on regular assets (home, brokerage, checking) to avoid probate by just naming the trust you want it to go to upon death? My understanding is this will allow you to avoid probate without having to fund the revocable living trust or just using a testamentary trust. Thanks!
Who is all allowed to view the will? Only the executor?
Trusts are mostly useless any person can still sue you. Lawyers are going to make money don’t think you are fine. make your no contest clause the most aggressive you can or the lawyers will feast.
My dad and mom made a will and they asked the laywer and he said he wouldnt get a revocable living trust because in texas the probate would be earier and a revocable trust would cost alot of money. Im not sure if this is true or what
What about an intentional probate for a small portion of assets for high-risk professionals?
If the accounts outside the trusts (annuities, IRAs, etc.) have designated beneficiaries does that eliminate the need for probate?
To answer your question, my mother passed away with a living trust and probate was completely avoided.
Thanks for the response! Appears your mother did it right!
Does having a Trust, Living Will, Medical Living Will form a Family Limited Partnership?
No, those are completely different things.
My parents have a living will. My mother passed away ten years ago my father still although very sick is alive. I became the beneficiary of my mother's share of the living trust . The trustee never probated her will or the trust nor produced a copy of her will or the trust documents to me and still refuses to give me detailed. Information about the trust. The trust itself was an irrevocable trust so I believe that means. Things can't be changed Nor people added to that trust. is that correct? When my father passes away it is my understanding that I am the sole beneficiary of Is the trust does it automatically transfers to me? Unfortunately The trustee has let greed. I believe or power. Go to his head and doesn't like to communicate with me. I receive disbursements every year in january.
House in my husband trust. He has passed, how do I put the house in my trust?
Recently had the worst time with TD Ameritrade. An IRA was not part of the trust and they wanted letters testamentary to provide me with the 1099R so I could do the decedents personal taxes. After a month of runaround from TD Ameritrade to Schwab they finally allowed the 1099R to be released to the beneficiary. My question here is why are letters testamentary required to obtain tax documents? Isn't the trustee responsible for filing the decedent's tax returns and shouldn't they have access to the tax documents?
What if the trust was never funded ?
My apologies on this but I'm still confused as to what is "probatable" vs. what is "not probatable" at least in the god awful state of California. We have a revocable Living Trust with our home in it and only child as sole heir. Beneficiaries are named for the bank, retirement, and and investment accounts but are we really protected????
You filed a new deed for your house in hte name of the trust? Work with the county to get home stead exemption bridged!!!!
banks would not even look at our paperwork.
Every bank knows about estate planning!!! At least setup POD, pay on death to heirs. Or move banks.
I already put my things in my son's name so I basically don't OWN anything on paper, he already does and he's on my bank account with me.
You should watch some of Paul’s videos about the dangers of putting all your assets in your children’s names. He covers several very real problems that could cause you to lose everything.
Stories from probate attorneys; the heirs, kids, waste the inheritance in = 60yro to help with their retirement etc etc.
Ineed connected with yourself ttrust