Revocable living Trust

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cowboy43

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Has anyone had any experience concerning a Revocable Living Trust versus a Will, The trust seems to be the method a lot of people are going too. I have had my place in a Trust for 10 years and after having a conversion with an Attorney today I have concerns. Now I feel like I need to see a different attorney And CPA for a second option. Any one had experience dealing with a situation like this.
He said when you put it in a trust you no longer own the estate the trust owns it, plus other problems may arise. I thought I was the trust, I just feel confused after talking to him.
I just ain't the smartest frog on the stump when it come to law. :cboy:
 
Cowboy. I feel your pain. My land was purchased by my great great grandfather. My mother is now the trust . except for 100 acres my grandfather deeded to me. Now i trust my mother. But i dont undetstand or trust the system. I pay my mother lease payments on the rest of the property. My strategy to keep my grandfathers legacy is as simple as me. I work my a$$ off and buy what i can from the trust every couple years. Maybe someone smarter will help us both out.
 
Years ago the trust was the way to go to beat the inheritance tax. Now days the limit of 5 million can pass with out taxes has pretty well put the trust sellers out of business.
 
cowboy43":38x05lq9 said:
Has anyone had any experience concerning a Revocable Living Trust versus a Will, The trust seems to be the method a lot of people are going too. I have had my place in a Trust for 10 years and after having a conversion with an Attorney today I have concerns. Now I feel like I need to see a different attorney And CPA for a second option. Any one had experience dealing with a situation like this.
He said when you put it in a trust you no longer own the estate the trust owns it, plus other problems may arise. I thought I was the trust, I just feel confused after talking to him.
I just ain't the smartest frog on the stump when it come to law. :cboy:
A trust has beneficiaries. You are the beneficiary of your trust until you revoke it or it passes to your named beneficiaries.
 
My understanding of ours is that it keeps land from being sold outside the family. Except in very extreme situations like health crisis. And it most be approved by trustee. Again thats my understanding. Im the only one in the family that has any intrest in it. And i dont mine paying them for it. I think my grandfather would be happy and proud about that.
 
fenceman":2z602gi9 said:
My understanding of ours is that it keeps land from being sold outside the family. Except in very extreme situations like health crisis. And it most be approved by trustee. Again thats my understanding. Im the only one in the family that has any intrest in it. And i dont mine paying them for it. I think my grandfather would be happy and proud about that.

By having your trust set up in that way it lowers the value of the land and saves you on some inheritance taxes when its appraised because it cannot be valued at fair market value. This can be good or it can be bad.
 
Hurley and Jo have nailed the reason we set ours up that way. Did ours several years ago to try and protect the property from the gov't and to try and keep the family land intact. Ours is a pass through trust. Son and Daughter will not have any tax obligation but grandkids will, maybe. Who knows what the gov't will do in the next 50 years. None of us may have anything left.
 
The smartest thing my late parents did was to set up a trust. In addition to all the advantages described by others, the trust is simply a set of (legal) instructions as to how my parents wanted the farms and everything else distributed. Most importantly, it kept my siblings and me from going at each other. Equally important, the trust kept everything in the family--beneficiaries were protected from claims by ex's and others.
 
12251HD":17k65d4x said:
The smartest thing my late parents did was to set up a trust. In addition to all the advantages described by others, the trust is simply a set of (legal) instructions as to how my parents wanted the farms and everything else distributed. Most importantly, it kept my siblings and me from going at each other. Equally important, the trust kept everything in the family--beneficiaries were protected from claims by ex's and others.
That's the exact reason our family has a blood trust. My dad set it up that way and it's worked great. Three ex wives and they haven't been able to get a dime out of the trust.
 
I have been going over the information in the trust and also googling information on revocable trust and have not found the concerns the attorney mentioned to me, I will go get another option (different attorney) and also the CPL for how future taxes will be affected.
I have a very special relationship with me three sons and want what is best for them. The property has been in the family for 130 years and we all live on the property and have no intention of ever selling . :cboy:
 
fenceman":2g43p6tz said:
My understanding of ours is that it keeps land from being sold outside the family. Except in very extreme situations like health crisis. And it most be approved by trustee. Again thats my understanding. Im the only one in the family that has any intrest in it. And i dont mine paying them for it. I think my grandfather would be happy and proud about that.
It's simply set up for your benefit or that of you ad others....your mom is the trustee with the right to "revoke" it and/or make changes at any time....in other words don't pi$$ off the trustee.
 
TexasBred":1v4jhrvb said:
fenceman":1v4jhrvb said:
My understanding of ours is that it keeps land from being sold outside the family. Except in very extreme situations like health crisis. And it most be approved by trustee. Again thats my understanding. Im the only one in the family that has any intrest in it. And i dont mine paying them for it. I think my grandfather would be happy and proud about that.
It's simply set up for your benefit or that of you ad others....your mom is the trustee with the right to "revoke" it and/or make changes at any time....in other words don't pi$$ off the trustee.

I believe it's only revocable by the person who sets it up to begin with. The land also needs to be deeded to the trust by the original trustee.

That person or persons then designate someone to administer that trust in the event of their death. Ours has an end date as to the when and how it is to be sold and distributed. It is a 5 year plan and then ceases to exist.

That designee has a fair amount of power to manage it but no ability to change the terms of the original trust.
 
cowboy43":2slhuu4c said:
I have been going over the information in the trust and also googling information on revocable trust and have not found the concerns the attorney mentioned to me, I will go get another option (different attorney) and also the CPL for how future taxes will be affected.
I have a very special relationship with me three sons and want what is best for them. The property has been in the family for 130 years and we all live on the property and have no intention of ever selling . :cboy:

I deal with these things on a regular basis and each has its strong points and its weaknesses but in general the entity you set up is only as good as the family and it sounds like your children are on board so I don't think you'll have any problems. What I've seen is when the children are informed with your intent and understand what you are doing then things run smoothly no matter the instrument you are using. If they are mature enough to understand things you need to keep them as informed as possible. Where the trouble arises is when you have an heir who sees your death as their ticket to wealth. These types can cause problems.

I also think everyone and their brother wants to sell you on preparing a trust or something to "help" you. I've seen some that were just BS and very poorly drawn up. None of this matters if the children are on board and understand your intentions but it can cause a train wreck if there is one who is bucking your wishes and the instrument isn't concise.
 
A trust keeps any extra attorneys away and the IRS away, mostly.

You put all your assets in the trust. A trust never dies. So no inheritance taxes. When you die, you die owning nothing. However you have set up who the trustees will be after your death. They now control the assets but must do as you have instructed them to do. With a will, there are lawyers involved after your death. They charge and have their won profit motives. The trustees normally splits up the assets after you die and the trust is dissolved. Then with the newfound knowledge gained by the survivors, they tend to set up their own family trusts.

Mom and dad recently died. We all thank them for doing their trust.
 
gimpyrancher":1v5qg0en said:
A trust keeps any extra attorneys away and the IRS away, mostly.

You put all your assets in the trust. A trust never dies. So no inheritance taxes. When you die, you die owning nothing. However you have set up who the trustees will be after your death. They now control the assets but must do as you have instructed them to do. With a will, there are lawyers involved after your death. They charge and have their won profit motives. The trustees normally splits up the assets after you die and the trust is dissolved. Then with the newfound knowledge gained by the survivors, they tend to set up their own family trusts.

Mom and dad recently died. We all thank them for doing their trust.
Bet a lawyer helped set up the trust for your mom and dad too. $$$$$$$
 
Absolutely. However setting the trust up was far cheaper than settling the estate after a death.

I'm about to have one set up for us and I have to include inside my trust a Special Needs Trust to protect my autistic son after our death. Still cheaper than having attorneys after the fact.
 
This is a statement that is difficult to understand, "Bet a lawyer helped set up the trust for your mom and dad too. $$$$$$$"

If you're trying to get all material things covered so after you final breath things will be done as you desire, why would you NOT have something done be a specialist in the field? If it's not done completely and correctly it just as well not be done at all.
 

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