What is the name of your state (only U.S. law)? Texas
My sister was recently diagnosed with metastatic breast cancer. Depending on the success of treatment, she may live for several months or several years. She is a single woman with no children. Her close relatives are our mother, three sisters and two nephews. She bought a house about five years ago and it is her main asset (encumbered by a lien) along with her personal property and some cash but not much (a few thousand dollars). She also purchased an automobile about a year ago. She has short- and long-term disablity insurance through her employmer and she is currently receiving short-term disability benefits. She has health insurance with, I believe, 80/20 coverage. Her 20% of the costs will be a substantial amount.
The family will be able to pitch in to help pay her mortgage if necessary while she is alive.
I am beginning research for her on the ways that she can best manage and try to protect her assets while she is alive and plan for their distribution in accordance with her wishes after her death.
Questions:
What are the advantages, if any, of creating a Trust? Is it mainly to be able to avoid having to go through probate?
Can one place encumbered real estate into a Trust?
If she does create a Trust, I assume that she can be the Trustee until she becomes incompetent (which is unfortunately likely at some point before she dies). Is that correct?
Would having her property in a trust create any asset protection during her lifetime?
Would it create any asset protection after her death?
One of the main questions is how to deal with the real estate upon her passing. She got a good deal on the house she bought and it is likely that one of us sisters will want to buy it from the Estate and live there after her death. Would that be easier if it was in a trust?
All of the siblings are in pretty equal financial status and we do not anticipate any fighting over her Estate, such as it is.
Any advice and suggestions are welcome. Thanks in advance.
My sister was recently diagnosed with metastatic breast cancer. Depending on the success of treatment, she may live for several months or several years. She is a single woman with no children. Her close relatives are our mother, three sisters and two nephews. She bought a house about five years ago and it is her main asset (encumbered by a lien) along with her personal property and some cash but not much (a few thousand dollars). She also purchased an automobile about a year ago. She has short- and long-term disablity insurance through her employmer and she is currently receiving short-term disability benefits. She has health insurance with, I believe, 80/20 coverage. Her 20% of the costs will be a substantial amount.
The family will be able to pitch in to help pay her mortgage if necessary while she is alive.
I am beginning research for her on the ways that she can best manage and try to protect her assets while she is alive and plan for their distribution in accordance with her wishes after her death.
Questions:
What are the advantages, if any, of creating a Trust? Is it mainly to be able to avoid having to go through probate?
Can one place encumbered real estate into a Trust?
If she does create a Trust, I assume that she can be the Trustee until she becomes incompetent (which is unfortunately likely at some point before she dies). Is that correct?
Would having her property in a trust create any asset protection during her lifetime?
Would it create any asset protection after her death?
One of the main questions is how to deal with the real estate upon her passing. She got a good deal on the house she bought and it is likely that one of us sisters will want to buy it from the Estate and live there after her death. Would that be easier if it was in a trust?
All of the siblings are in pretty equal financial status and we do not anticipate any fighting over her Estate, such as it is.
Any advice and suggestions are welcome. Thanks in advance.