To have a trust or not?

[CanonRay]

We are a retired couple 70 and 64...no kids and financially pretty secure. We have a will, but is a trust worth the effort and expense? What would we gain? We have a home and investments, but not enough to trigger huge estate.

[TreasonousBastard]

1. I'm not an expert, but I've always assumed trusts were to....

control heirs, and are not that big.

Sounds like the two of you are secure and have dealt with where the money goes, so you have no worries. The marriage deduction, on top of other limits on death benefits should cover you.

A trust would add to your expenses and cause legal aggravation, so wouldn't be worth the trouble.

But, a lawyer experienced in death rights and not trying to sell you something might be the best bet. A good financial advisor (not a salesman) would be a good bet, too.

[DURHAM D]

2. Trust is the way to go.

No probate required and kids can start to split it all up the next day after the second parent dies.

Each of your kids should open accounts with your investment group(s) Lets say you have three kids. The broker can split your investments into thirds and put in their accounts.

Each of your kids should open accounts at the bank(s) where you have accounts. After all your bills have been paid and revenues received (including monies from sell of the house) split into thirds and place in each of their accounts.

Don't let some entity manage your trust for you. You can do it.

ETA: Appoint more than one Trustee. My parents appointed all three of their children. It worked out well,

[Phoenix61]

3. The best reason to have a trust is to

avoid probate. With a will, you have an executor instead of a trustee. I’d talk to someone who is knowledgeable about this.

[3Hotdogs]

4. Time spent with an elder law attorney is time well spent.

You want to make sure each other is protected from the costs of the ravages of age.


My mother's elder attorney cost us $2k and saved us over $120k in taxes and estate fees.

[A HERETIC I AM]

5. You say you have no kids, but are there any other heirs at all?

Last edited Thu Nov 11, 2021, 04:06 PM - Edit history (1)

Nieces or nephews, perhaps?

Or are you at all charitably inclined?

As was mentioned, a trust helps avoid the probate process, and if you intend on leaving assets to any entity at all, having a trust makes that process smoother. Plus it allows you to spell out specifically how disbursements would take place.

If you listen to NPR, you have heard the names of various trusts that help fund their programming, the Joan Kroc (Wife of Ray Kroc, founder of McDonalds) Foundation being one of them. A trust can help fund any number of causes you feel passionate about in perpetuity, if the investments held by the trust are structured properly.

If you and your spouse feel there would be a significant amount of assets and you would like it to go toward some particular cause dear to you, a trust is the best way to make that happen. If it is going to be a significant amount then you should seek the advice of competent legal counsel in this regard.