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Is a TRUST really necessary?

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jmmahr

Junior Member
What is the name of your state? GA

I know everyone says establish a trust to bypass probate and pass on assets,
BUT
if the estate is very simple, ONLY Cash bank accounts and CD's.
No House, debts, mortgages or loans.
Will has been prepared, says everything is to be split 50/50, between 2 adult children.
Mom is 90. POA and health care proxy had been done 10 years ago.

Do we really need to set up a TRUST to pass on her assets ?
We thought by putting all pf our names on assets so they would pass easily to us in that way.

Mom is very stubborn and understandably does not want to talk about this.
There is so much info flying around I get confussed as to best course of action.

Please, It’s a sad topic to discuss but any honest advice or guidance would be appreciated.

Is a trust really necessary in our case?

And if so is there a simple,cheep painless way to set one up?

THANK YOU.
 


anteater

Senior Member
You really should stop creating a new thread every time you have a new question. Anybody responding does not have the benefit of knowing what you said in other threads without a bunch of searching.

Do we really need to set up a TRUST to pass on her assets ?We thought by putting all pf our names on assets so they would pass easily to us in that way.

Mom is very stubborn and understandably does not want to talk about this.
Who is this "we" who is thinking about "putting.... names" on her assets and/or creating a trust? You mention a POA, but does that POA give the authority to start changing the ownership of mom's assets and to create a trust?

I don't know the probate process in Georgia, but, in many states, it isn't the "Nightmare on Elm Street" that many people make it out to be.
 
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tranquility

Senior Member
A trust is not necessary. However, anything else invites litigation and has unforseen ramifications regarding myriad issues. Simple and cheap is only that way because it rarely accomplishes goals beyond simple and cheap.

You've had numerous people tell you differently from the way you want things to be handled. They have alluded to the problems and have advised you to see a professional. You refuse to accept that advice. To go through all the problems would take a book. I think there are some out there. Buy one and read it. Libraries have them too. Check one out and read it.

Here our goal is not to write books. Our goal is to help. (At least mine is.) Many have written regarding their training or experience and say what you envision has been tried by others and it has not been pretty. In all cases? No. Sometimes people can toss money up in the air and it all comes down in neat little piles. Maybe that will happen in your case too. For me, I tend to like to be sure things go the way I plan when I'm talking about over a half a million dollars. To some that may not be a lot, but to me, that is a lot. If it were me I wouldn't go with hope and a prayer the wind will be light, I'd tie the money up in neat little bundles and place them where I want. But, that's just me.
 

curb1

Senior Member
I don't know what all of the lecturing is all about, but there is a simple answer to the question. The question was, "Do we really need to set up a TRUST to pass on her assets ?"

The answer is "No, you don't need a trust to pass on her assets".
 
S

Scott Dutcher

Guest
You Don't Need A Trust
I've had clients ask that question a number of times. No matter your reason for considering a trust for your mother's assets, you should not let anyone pressure you (or your mother) into taking an action you're uncomfortable with.

If a person dies without a trust, their assets go through the probate process. Thousands of probate cases are opened every day and most families make it out the other side in fine shape.

You should know, however, that probate can be expensive depending on your state's law. Fortunately, most states have simplified procedures for small estates. Check on Georgia's laws in that regard to see if you qualify.

Best of luck.
 

tranquility

Senior Member
This is a reason why people should not post in more than one thread. My understanding of what the OP proposes is to use his POA to add himself and other children to the accounts of his mother. The language is imprecise as to if it will be joint tenancy or POD.

Now, is a trust necessary?

We will ignore the possible illegalities of doing this and assume POD to avoid gift issues. Then things are solid right? (Remember this is for over $600K.)

Without using real facts, but just as an example, let's pretend that child A is on CD1 and child B is on CD2. Mom dies. Oh no medicare wants some money and so takes it from CD1 to satisfy themselves. Debt solved. CD2 passes to B. Score! Or, a lawsuit, a judgment, an accident, back taxes--whatever and the person owed takes from one CD. Are mom's wishes fullfilled? Are both children going to be happy? Is the child who still gets the money willing to gift over half?Did the easy and cheap way work?

Is a TRUST really necessary?
 
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