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How many ppls here has their home or properties in a TRUST?


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47 replies to this topic

#1 KristofsMom

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Posted 30 April 2012 - 10:52 AM

Will our CB'ers please show their hands if they have in a Irrevocalbe or Non evocable trust?



#2 KristofsMom

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Posted 30 April 2012 - 10:54 AM

I will be the first to say YES..... I have all my properties in a TRUST!!!!

Who wouldn't these days in the sue you for anything world....!!!!!!!!!

#3 Unmet Potential

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Posted 30 April 2012 - 11:52 AM

you have to do this sort of thing BEFORE you get into trouble, though.
if you do it afterward, the transfer is easily avoided.

#4 OCChineseguy

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Posted 30 April 2012 - 12:03 PM

It would be nice to know what type of trust you have and why? And how much it cost, and how you had it prepared? lawyer, legal zoom etc.

I am now out of trouble, and I am very interested in setting up a trust?

Great Topic.

OCCG

#5 Unmet Potential

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Posted 30 April 2012 - 12:13 PM

Will our CB'ers please show their hands if they have in a Irrevocalbe or Non evocable trust?


non-evocable? you can't remember it? Posted Image

#6 road2freedom

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Posted 30 April 2012 - 12:14 PM

+1 I'm interested in learning more

#7 RVR

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Posted 30 April 2012 - 01:21 PM

Mine are in trusts, both Revocable and Irrevocable. They are 'Grantor Trusts', as the IRS does not distinguish between the individual(s) and grantor(s) of the trust. As per page 05 of the instructions of 1041:

"In general, a grantor trust is ignored for tax purposes and all of the income, deductions, etc., are treated as belonging directly to the grantor."

This is important when dealing with mortgages, as well as with real estate taxation. Most tax assessors will allow for the various property tax reductions (age, income, disability, etc.) because of this legal fiction, which they would not do if the property were held in an LLC or a different kind of trust.

#8 KristofsMom

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Posted 30 April 2012 - 02:11 PM

RVR is very true! I have mine in both types of trust. OC.. What state are you in? That helps with letting you know what you have to do to protect yourself.

Also, you can't use this to help you ONCE you are in trouble this is NOT what I am asking this for. I just wanted to know how many CB'ers out there have their ducks or shall I say .. have their assets covered..lol


A few small reason I use a trust

1. Everything I worked for all my life will not go to PROBATE AND TO ATTORNEYS who don't deserve it!!! (avoid probate)

2. I refuse to work hard for everything I own... then have someone slip in my yard and sue me and try to take my properties!! (not matter the max of my insurance)

*****Just TWO reason.... but I have a LARGE list of other reasons*******

I find it funny that most attorneys out there will NOT help people put their clients properties in a TRUST (unless you have 50 mill in the bank and pay them VERY well to do so) It really comes down to their own greed. If EVERYONE covered their ASSEST.... then an ATTORNEY wouldn't sue you and try to take you property!!! However, if you do NOT have a trust... you get sued... BAM... Judgement against your home. Think about it folks... ;)


NOTE.. I am not trying to bash attorneys. I have two that is full time employess of mine! However, both have told me this to my face! "Why protect them.. then I can't sue them later!"

#9 UGAFan

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Posted 30 April 2012 - 02:43 PM

I do.

#10 KristofsMom

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Posted 30 April 2012 - 04:18 PM

It would be nice to know what type of trust you have and why? And how much it cost, and how you had it prepared? lawyer, legal zoom etc.

I am now out of trouble, and I am very interested in setting up a trust?

Great Topic.

OCCG


What state are you in? That would help answer this question...

#11 OCChineseguy

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Posted 30 April 2012 - 07:07 PM

California


Thanks
OCCG

#12 SparkyinCA

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Posted 30 April 2012 - 08:15 PM

I helped my Mom set up a Revocable Trust when my Father passed away a couple of years ago. There was nothing in place once he passed so it was imperative Mom get their assets in a Trust so we wouldn't have to go through a long drawn out probate here in California (18 months of attorney fees and court costs..no way!!). It took about 15 months to get everything in place (power of attorney, durable medical power of attorney, and her Will). Since my folks had everything in Joint Tenancy it was fine while both my folks were alive. But a big problem once either one passed.

It cost about $3300 to set everything up. Had a lady attorney that specialized in Estate Planning come to the house to draw up everything, sign and notarize the docs once they were done. It helped a great deal because Mom was having trouble walking and she felt more comfortable going over things at home rather than at an attorney's office. The attorney was very good about explaining everything to Mom. One of the issues was Mom felt she was giving everything away but the attorney did a demonstration of putting something into Mom's purse. She still has the contents under her control, but her assets are now protected (by the purse which = Trust). She didn't have to put everything in the Trust. She is able to keep $100k or less in her checking/savings accounts for regular expenses outside of the Trust. The only drawback is the bank will hold the funds for at least 45 days after she passes since those money's are not in her trust and would be exempt from Probate in California (clarification - that includes any other assets totaling under $100K would be exempt which would include her bank accounts).

While it was a very painful process for my Mom to go through, at least it is done now. The attorney helped Mom place specific assets in the trust (mainly her home) so the Trust was funded. It does no good to set up a trust if it isn't funded properly..Many people make this mistake from what I understand. They forget about vehicles, expensive heirlooms, etc that needed to be identified and put in the trust to be protected from probate. At $350/hr for attorney fees, it pays to spell these things out to avoid a long drawn out and expensive probate.

The peace of mind this is all done is well worth the time and expense to get a Trust in place. My father would roll over in his grave knowing probate and taxes would eat up their estate, but he was never able to get Mom to do it while he was alive.

#13 RVR

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Posted 30 April 2012 - 09:57 PM

She didn't have to put everything in the Trust. She is able to keep $100k or less in her checking/savings accounts for regular expenses outside of the Trust. The only drawback is the bank will hold the funds for at least 45 days after she passes since those money's are not in her trust and would be exempt from Probate in California



You should consider modifying any financial accounts outside of a trust to a POD account. These are then "Payable On Death", meaning they are instantly transferred to the named beneficiary. The beneficiary can access the account as soon as they produce a death certificate.

#14 gabbyraja

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Posted 30 April 2012 - 10:32 PM

We also have a revocable trust, living will, durable POA, etc. Set it up in MI about 10 years ago for $1000. At the time we had assets. Now we do not, so there's nothing in it, lol. But, we will soon have the house, the car paid off, etc, so it will soon be funded again. And my children and/or their guardian should have no trouble with probate, or my less-than-selfless sister, or any of dh's relatives trying to cheat them out of anything or tying them up in court for ho knows how long.

#15 Unmet Potential

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Posted 30 April 2012 - 10:43 PM

RVR is very true! I have mine in both types of trust. OC.. What state are you in? That helps with letting you know what you have to do to protect yourself.

Also, you can't use this to help you ONCE you are in trouble this is NOT what I am asking this for. I just wanted to know how many CB'ers out there have their ducks or shall I say .. have their assets covered..lol


A few small reason I use a trust

1. Everything I worked for all my life will not go to PROBATE AND TO ATTORNEYS who don't deserve it!!! (avoid probate)


2. I refuse to work hard for everything I own... then have someone slip in my yard and sue me and try to take my properties!! (not matter the max of my insurance)

wouldn't the prudent thing be to remove known hazards from your yard?

*****Just TWO reason.... but I have a LARGE list of other reasons*******

I find it funny that most attorneys out there will NOT help people put their clients properties in a TRUST (unless you have 50 mill in the bank and pay them VERY well to do so) It really comes down to their own greed. If EVERYONE covered their ASSEST.... then an ATTORNEY wouldn't sue you and try to take you property!!! However, if you do NOT have a trust... you get sued... BAM... Judgement against your home. Think about it folks... ;)

well, most attorneys don't specialise in trusts & estates. i won't press a med mal claim, but i'll libel a vessel at the drop of a hat. you don't want every attorney creating trusts.


by the way, should someone suffer an accident on the trust's property, the property owner (the trust) isn't off the hook just because it is a trust. property can still be encumbered.


NOTE.. I am not trying to bash attorneys. I have two that is full time employess of mine! However, both have told me this to my face! "Why protect them.. then I can't sue them later!"


you should file a complaint with your state's bar against both.

#16 Unmet Potential

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Posted 30 April 2012 - 10:47 PM

We also have a revocable trust, living will, durable POA, etc. Set it up in MI about 10 years ago for $1000. At the time we had assets. Now we do not, so there's nothing in it, lol. But, we will soon have the house, the car paid off, etc, so it will soon be funded again. And my children and/or their guardian should have no trouble with probate, or my less-than-selfless sister, or any of dh's relatives trying to cheat them out of anything or tying them up in court for ho knows how long.


the probate process isn't so much the problem. intestate succession complicates things.

#17 cashnocredit

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Posted 30 April 2012 - 10:53 PM

You can't protect your assets from big lawsuits with a revocable trust. It must be an irrevocable trust done before you get in trouble and you have to be careful to consider estate/gift tax consequences. You don't want your heirs to deal with clawbacks.

#18 cashnocredit

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Posted 30 April 2012 - 10:56 PM


We also have a revocable trust, living will, durable POA, etc. Set it up in MI about 10 years ago for $1000. At the time we had assets. Now we do not, so there's nothing in it, lol. But, we will soon have the house, the car paid off, etc, so it will soon be funded again. And my children and/or their guardian should have no trouble with probate, or my less-than-selfless sister, or any of dh's relatives trying to cheat them out of anything or tying them up in court for ho knows how long.


the probate process isn't so much the problem. intestate succession complicates things.


My parents had a combination of POD, joint bank accounts, and wills for the rest. It was all handled by relatives who were executors at virtually no cost. Net assets were a bit under 1/2 M.

#19 Unmet Potential

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Posted 30 April 2012 - 10:57 PM



We also have a revocable trust, living will, durable POA, etc. Set it up in MI about 10 years ago for $1000. At the time we had assets. Now we do not, so there's nothing in it, lol. But, we will soon have the house, the car paid off, etc, so it will soon be funded again. And my children and/or their guardian should have no trouble with probate, or my less-than-selfless sister, or any of dh's relatives trying to cheat them out of anything or tying them up in court for ho knows how long.


the probate process isn't so much the problem. intestate succession complicates things.


My parents had a combination of POD, joint bank accounts, and wills for the rest. It was all handled by relatives who were executors at virtually no cost. Net assets were a bit under 1/2 M.


exactly.

#20 JunkBuyersWorstNightmare

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Posted 30 April 2012 - 11:24 PM

How about simply incorporating and having the corporation own the real estate?

#21 cashnocredit

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Posted 30 April 2012 - 11:48 PM

How about simply incorporating and having the corporation own the real estate?

A shareholder can be forced to sell their ownership in a corporation to satisfy a judgement. Corporations are best when you have a bunch of different people with various investment levels in the biz. Corporate law provides well established mechanisms for determining governance when different people have different ideas about what should be done. It also provides protection of the shareholders from corporate liabilities though these are only absolute when the shareholder is not a control person, board member, or officer. While shareholders are also insulated from other shareholder's liabilities it doesn't do much for a shareholder's protection when the liability comes from themselves.

#22 SparkyinCA

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Posted 01 May 2012 - 12:11 AM

She didn't have to put everything in the Trust. She is able to keep $100k or less in her checking/savings accounts for regular expenses outside of the Trust. The only drawback is the bank will hold the funds for at least 45 days after she passes since those money's are not in her trust and would be exempt from Probate in California



You should consider modifying any financial accounts outside of a trust to a POD account. These are then "Payable On Death", meaning they are instantly transferred to the named beneficiary. The beneficiary can access the account as soon as they produce a death certificate.


Thank you for this tip, RVR :) I hadn't heard of this before. Kinda pisses me off the lady at Wells Fargo Bank didn't mention it when we discussed the accounts wouldn't be in Mom's Trust. She made it very clear the money would not be available for 45 days once a death certificate was produced. I didn't push the issue as the beneficiary is well enough off that it won't be an issue to wait. But it would have been nice if WFB would have said something or offered up they have other ways to set up the account. One more reason I hate WFB...

I'll check into this as long as there are no liability issues such as adding the beneficiary or myself as Joint Tenant to the accounts. That would not be a smart move to do that as it definitely puts Mom at risk of losing her liquid assets at this bank.

#23 KristofsMom

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Posted 01 May 2012 - 10:23 AM

Just want to let you guys know its NOT wise to put an automobile in a trust with your property. If they automobile is in a wreck then it can cause problems with the house in the trust (example LAWSUITS)

#24 prudent

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Posted 01 May 2012 - 11:21 AM

I hadn't heard of this before. Kinda pisses me off the lady at Wells Fargo Bank didn't mention it when we discussed the accounts wouldn't be in Mom's Trust. She made it very clear the money would not be available for 45 days once a death certificate was produced. I didn't push the issue as the beneficiary is well enough off that it won't be an issue to wait. But it would have been nice if WFB would have said something or offered up they have other ways to set up the account. One more reason I hate WFB...I'll check into this as long as there are no liability issues such as adding the beneficiary or myself as Joint Tenant to the accounts. That would not be a smart move to do that as it definitely puts Mom at risk of losing her liquid assets at this bank.


To be fair, WFB probably doesn't want their banking folks to give advice to customers on how to title an account. You can imagine how that could backfire badly on the bank.

#25 SparkyinCA

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Posted 01 May 2012 - 12:17 PM


I hadn't heard of this before. Kinda pisses me off the lady at Wells Fargo Bank didn't mention it when we discussed the accounts wouldn't be in Mom's Trust. She made it very clear the money would not be available for 45 days once a death certificate was produced. I didn't push the issue as the beneficiary is well enough off that it won't be an issue to wait. But it would have been nice if WFB would have said something or offered up they have other ways to set up the account. One more reason I hate WFB...I'll check into this as long as there are no liability issues such as adding the beneficiary or myself as Joint Tenant to the accounts. That would not be a smart move to do that as it definitely puts Mom at risk of losing her liquid assets at this bank.


To be fair, WFB probably doesn't want their banking folks to give advice to customers on how to title an account. You can imagine how that could backfire badly on the bank.


I understand your comment, prudent - The only thing WFB is/was and will continue to be when it comes to customers accounts is greedy. It benefits WFB not to say anything as they will make money off the accounts being frozen for 45 days. I'm not willing to make an excuse for them although I see your point. A polite comment from the bank to check with Mom's attorney would have been a nice thing to do. But nothing. Just a very stern warning the money will be frozen. I'm a very polite and businesslike customer with them, but can't stand how they do business. There are better ways to handle customer accounts and WFB certainly has mastered how NOT to treat customers.

Edited by SparkyinCA, 01 May 2012 - 12:19 PM.





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