Best way to make a living trust

[papillon58]

I am sure this question has been asked before. I have no knowledge in this regard. My needs are relatively simple. There are many online sites that offer services to make living trusts. Can I do this with online sites? Also, most of these services are based on an annual plan. Why is an annual plan necessary?

 

[adjusterjack]

My needs are relatively simple.

Then maybe you don't need a trust.

How old are you?
Are you married?
Have children?
Own a home?
Have investments?
What state do you live in?

Can I do this with online sites?

If you want to.

Also, most of these services are based on an annual plan. Why is an annual plan necessary?

I have no idea what you mean by annual plan. Provide a link to one of those sites so we can see what they are talking about.

 

[TrustUser]

i have never heard of an annual plan, either. but i am guessing that they charge an annual fee to keep the trust up to date, or something to that effect. if written correctly, there is no need for "annual" maintenance.

there are plenty of local lawyers that do basic trusts for people, somewhat inexpensively. they tend to hold seminars, where that is a major part of their business. that sort of trust is probably satisfactory for the vast majority of people.

 

[Taxing Matters]

I am sure this question has been asked before. I have no knowledge in this regard. My needs are relatively simple. There are many online sites that offer services to make living trusts. Can I do this with online sites? Also, most of these services are based on an annual plan. Why is an annual plan necessary?

Whether a living trust would be better for you over something else, like a simple will, depends on the details of your situation. The first significant piece of information for that is missing from your post: the state in which you live. The laws and probate practice varies consideraly among states regarding how fast the probate is concluded and how much it would cost. Second, what assets do you have? In some states nearly all assets can be transferred with methods other than a will or a trust. For example, most of your financial accounts can be transferred to whomever you want to give them by simply making beneficiary designations with the company that holds those accounts. You do that just by filling out the form that the institution uses for that.

 

[papillon58]

My apologies for not providing details. This is all new to me. I have provided below answers.

How old are you? 65
Are you married? Yes
Have children? 1
Own a home? yes
Have investments? Have brokerage and bank accounts
What state do you live in? Texas

I was looking at places like what is mentioned in this article

https://www.nerdwallet.com/article/investing/estate-planning/making-will-online

Then maybe you don't need a trust.

How old are you?
Are you married?
Have children?
Own a home?
Have investments?
What state do you live in?



If you want to.



I have no idea what you mean by annual plan. Provide a link to one of those sites so we can see what they are talking about.

 

[adjusterjack]

Personal opinion, not legal advice.

You probably don't need a trust. Anything owned jointly (home, bank accounts, vehicles) goes to the surviving spouse. Most things with just one name on it can list a beneficiary and contingent beneficiaries if needed. A simple will might suffice for anything not specified. Texas allows for a beneficiary deed on your home where you and your wife can list your son/daughter as beneficiary if you both die in a common accident.

That might not address all the nuances of your situation so it would be a good idea to have a review by an estate planning attorney to get all the tees dotted and the eyes crossed.

 

[Taxing Matters]

Personal opinion, not legal advice.

You probably don't need a trust. Anything owned jointly (home, bank accounts, vehicles) goes to the surviving spouse.

Not if the child the OP has is not the child of the OP and his present spouse. You seem to assume that is the case, but you didn't specifically ask about that. If the child has a different parent than the OP's present trust it doesn't go all to the child. You also didn't ask about the child's age. If the child is still a minor, it's generally a bad idea to give the property outright to the child. Indeed, IMO it's a bad idea for any kid under age 25 to get an inheritance outright. Younger people tend not to be all that prudent with their money.

The OP ought to see an estate planning attorney. If all he or she needs is simple estate planning, the cost shouldn't be all that great and it would ensure things are done correctly. The exact detail of the OP's situation matter, and we don't have those and even if we did we cannot recommond a specific estate plan for the OP, as that crosses the line into the unauthorized practice of law.

I agree, however, that it's possible that a trust is not needed and that other methods of asset distribution at death might be better. The estate planning attorney can provide advice on that.

 

[papillon58]

Not if the child the OP has is not the child of the OP and his present spouse. You seem to assume that is the case, but you didn't specifically ask about that. If the child has a different parent than the OP's present trust it doesn't go all to the child. You also didn't ask about the child's age. If the child is still a minor, it's generally a bad idea to give the property outright to the child. Indeed, IMO it's a bad idea for any kid under age 25 to get an inheritance outright. Younger people tend not to be all that prudent with their money.

The OP ought to see an estate planning attorney. If all he or she needs is simple estate planning, the cost shouldn't be all that great and it would ensure things are done correctly. The exact detail of the OP's situation matter, and we don't have those and even if we did we cannot recommond a specific estate plan for the OP, as that crosses the line into the unauthorized practice of law.

I agree, however, that it's possible that a trust is not needed and that other methods of asset distribution at death might be better. The estate planning attorney can provide advice on that.

Thanks you for your response. Me and my spouse are the parent of our only child who currently is 28 years old. Me and my spouse have each other as beneficiaries for most of our accounts with our child as the contingent beneficiary. The house is jointly owned by me and my spouse.

I was also wondering about a situation where either myself or my spouse gets incapacitated. Is a trust better in such situations?

 

[adjusterjack]

I was also wondering about a situation where either myself or my spouse gets incapacitated. Is a trust better in such situations?

Possibly but not necessarily. There are other options. Best to discuss with an estate planning attorney.

 

[Taxing Matters]

I was also wondering about a situation where either myself or my spouse gets incapacitated. Is a trust better in such situations?

It may be. It depends on the details of your situation and your goals. I do suggest you consider getting a durable power of attorney (DPOA) done for each of you; you would make one to designate who makes certain decisions for you should you become incapacitated and your wife would do the same. An alternate agent can be named to take over if the first person you pick is unable to do it. That way, should one of you become incapacitated the other would be able to do a lot of things on behalf of the incapacitated spouse without the need to go to court for a formal guardianship.

 

[papillon58]

Possibly but not necessarily. There are other options. Best to discuss with an estate planning attorney.

Thank you

 

[papillon58]

It may be. It depends on the details of your situation and your goals. I do suggest you consider getting a durable power of attorney (DPOA) done for each of you; you would make one to designate who makes certain decisions for you should you become incapacitated and your wife would do the same. An alternate agent can be named to take over if the first person you pick is unable to do it. That way, should one of you become incapacitated the other would be able to do a lot of things on behalf of the incapacitated spouse without the need to go to court for a formal guardianship.

Thank you.