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sleekcraft137
10-10-2007, 12:04 PM
Hey guys, now that I have somewhat of an established life (i.e. house, business, wife, baby, toys etc.) I want to set up a living trust. I'm curious as to how a lot of people are going about it and what is recommended. I know that there are web sites and software to do it yourself such as Legalzoom.com, livingtrustnetwork.com etc. What is the best way to go about this??? Anyone have any recommendations?

clownpuncher
10-10-2007, 12:16 PM
I'm all for do-it-yourself when it comes to things I'm pretty confident about, but, when it comes to things that have a potential of biting me hard in the ass I insist on the pro's.
Something as important as your families future financial burdens is a pretty BFD. My thought.............if you're not comfortable/confident that you'll do a good job yourself you should just hire an attorney to do it right. Sleep sound knowing your family will be taken care of. Not that expensive in the big picture. You can even have you attorney get you going with what you have now and just make changes periodically on your own computer. Give a copy of the disk to your atty as well......save some $$$$$. Good luck.

hkunz
10-10-2007, 12:17 PM
You will want a lawyer at some point. We used a lawyer to set ours up, and ahd it checked by another lawyer. The minimal cost for a pro to check it out is not bad compared to the huge tax bite that can come from not getting it right.

Captain Dan
10-10-2007, 12:22 PM
Hey guys, now that I have somewhat of an established life (i.e. house, business, wife, baby, toys etc.) I want to set up a living trust. I'm curious as to how a lot of people are going about it and what is recommended. I know that there are web sites and software to do it yourself such as Legalzoom.com, livingtrustnetwork.com etc. What is the best way to go about this??? Anyone have any recommendations?
It's not just a living trust - other instruments need to be executed to make it a comprehensive Estate Plan. Consult an attorney that specializes in the field or a lot of the hard earned $$ that you think will go to your family will go to the government.

2Driver
10-10-2007, 12:38 PM
It's not just a living trust - other instruments need to be executed to make it a comprehensive Estate Plan. Consult an attorney that specializes in the field or a lot of the hard earned $$ that you think will go to your family will go to the government.
Exactly, It's not just filling in some word docs and getting them notarized. This requires a good Estate planning attorney. We spent $2,500 and got it done right and it was worth every penny.
We started with a discount person ($500) in Havi on recommendation from a friend. They didnt know 10% what our attorney knew. I now have a comprehensive, locked down, iron clad plan. Trust me on this one.

Havasu_Dreamin
10-10-2007, 12:40 PM
Exactly, It's not just filling in some word docs and getting them notarized. This requires a good Estate planning attorney. We spent $2,500 and got it done right and it was worth every penny.
We started with a discount person ($500) in Havi on recommendation from a friend. They didnt know 10% what our attorney knew. I now have a comprehensive, locked down, iron clad plan. Trust me on this one.
Exactly. Talk with an Estate Planning Attorney. I know you're in Idaho but I've got a great one down in Newport Beach if you want to talk to him.....

HokeySon
10-10-2007, 01:37 PM
you should try to locate someone in your state because it has to comply with state laws too. Call the bar and get a few names, then talk to them to find someone you are comfortable with.

RandyH
10-10-2007, 06:28 PM
Revocable and Irevocable also need to be considered and what assets can fall into them. Life Insurance benefits can avoid tax in a Irevocable in some states. Hire a pro. What ever you do , you dont want to leave a tax burden to someone else.
Also big right now is incentive based inheritance allowances. For example I have a niece set up to receive equally what she earns after college, each year till her share is gone. You can do the same thing with grades.

voodoomedman
10-10-2007, 06:43 PM
Get an attorney. I'd be glad to pass on mine's info so you can check them out for starters. But yeah if your married you'll probably want things like A-B provisions and such. I think when all was said and done we were in for about $1400 bucks. That's about normal in Taxifornia. It certainly gets more when you have more assets and whatever else to consider. It's very easy though just go and they ask you questions on what you want to do, they set it up you come back and sign documents and they explain everything. You then have your bank accounts and stocks and such placed into ownership of the trust and life insurance goes to the trust being the beneficiary and stuff like that. Easy though. The hardest part is paying the attorney. If something happens to me then my wife and kids need to be taken care of. If something happens to me and my wife then the kids definitely need it done right. I didn't consider for a second doing it myself on a website.

Ziggy
10-10-2007, 06:52 PM
Do not attempt to do this yourself........consult with a couple Estate Planning Attnys and pick one you like and trust and you feel has covered all the bases. One wrong move and it could cost ya dearly.

OCMerrill
10-10-2007, 08:37 PM
We also ponied up the coin and got it done right. When your done (actually it's never Done unless your dead) it's quite an assembly of documents. Constantly adding and subtracting, etc. I visit this book yearly like taxes to make sure its all current.
On the other hand my father did his own and thinks I waste money on stuff like this so go figure.:)

TCHB
10-10-2007, 09:03 PM
Hire a lawyer so it is done right!

BajaMike
10-10-2007, 10:11 PM
Like most everyone else said, hire a good estate planning attorney!:idea:

My Man's Sportin' Wood
10-11-2007, 04:59 AM
We had ours handled by our attorney. Actually, our attorney is a business attorney, but his wife (and partner) specializes in Real Estate and Trusts, so she did it. I think it was $1500 back then. Make sure who gets custody of your child/children is in there and who gets control of the $$. We separated the two responsibilities and put in a monthly stipend for who is taking the kids plus an amount so they could add on or get a larger house if needed. Plus, you have to decide how much you want your kids to get at which age. All at 18? 25% at 18, 25, 30 and 35? It took us about 6 months to narrow everything down.
It should also include that form (can't remember the name of it) that gives your wife the ability to make your medical decisions. That's actually what prompted us to do the trust. The whole Terri Shaivo thing. We were discussing it with my dad and he was a little "tuned" but he said he would kill whoever pulled the plug on his children :jawdrop: I knew right then and there that I wanted Jeff making those decisions and that if I didn't put it in writing and something happened, my parents would do the same thing to Jeff that Terri's parents did to her husband. Years of court action and drama. Make sure it's done legal and up to snuff. Invest in an attorney. It's your families security, just like life insurance.

WestTNRiverRat
10-11-2007, 05:10 AM
$2500 is cheap compared to the $879,776 in Federal gift tax my wife and I just got through paying Uncle Sam from an inheritance we received. We just finished paying our attorney $2500 to ensure this doesn't happen to our kids when we are gone. That is if we have anything left to leave them. :D :D

bohica
10-11-2007, 06:23 AM
Setting up a living trust is the easy part, anyone can do it with the help of one of those Estate Planning places that advertise on the back of the newspaper every so often. It's not rocket science, a few forms, signatures and a notary public and that's it.
Now funding the trust is the difficult and time consuming part. Changing the title on everything you own ie homes, cars, boats, bank accounts ect. Knowing what forms you need, who to send them can become overwhelming. Most people never get this part accomplished, thus their living trust is worthless.
Now if your talking Estate Planning, consulte your CPA.:D

sleekcraft137
10-11-2007, 06:58 AM
Thanks for all the info guys. The DIY stuff didn't appeal to me all that much, that's why I asked the question. I think going with a pro/ Lawyer is the way to go. Last thing I need is to do something stupid and leave my family high and dry all the while thinking that they are going to be take care of.

2Driver
10-11-2007, 07:07 AM
Now funding the trust is the difficult and time consuming part. Changing the title on everything you own ie homes, cars, boats, bank accounts ect. Knowing what forms you need, who to send them can become overwhelming. Most people never get this part accomplished, thus their living trust is worthless.
Very good point. Our attorney handled the real-estate changes and I did all the bank, brokerage and vehicle changes. It was easy, just a name change, but it has to be perfect. Leave anything out and it will go to probate when you die vs being in the trust name.

2Driver
10-11-2007, 07:53 AM
Now funding the trust is the difficult and time consuming part. Changing the title on everything you own ie homes, cars, boats, bank accounts ect. Knowing what forms you need, who to send them can become overwhelming. Most people never get this part accomplished, thus their living trust is worthless.
Very good point. Our attorney handled the real-estate changes and I did all the bank, brokerage and vehicle changes. It was easy, just a name change, but it has to be perfect. Leave anything out and it will go to probate when you die vs being in the trust name.

It's Only Money
10-11-2007, 10:55 AM
As stated it is important to have a trust attorney for your state. Different states have different rules. Once the Trust is in place it must be funded or it is worthless. Personal property doesn't belong in the trust. Real assets such as property does. The Advance directives is a must to alleviate end-of-life issues. Living Will and Power's of attorney must be setup. Quick and dirty is NOT the right way to go. If you have any substantial assets you will need a good financial planner to avoid or minimize the gift and inheritance taxes. Sometimes an insurance policy will be taken out to pay for the taxes upon death so that you heirs don't have to sell businesses or properties to pay the government. The gentleman with the $800K tax bite would have been zero if planned right by a top notch financial guy.
Estate planning is both an attorney and planner to be done right. Look for friends and associates you trust (no pun intended) to give recommendations. If you have heirs this plan is really important to get right.

bohica
10-11-2007, 03:39 PM
Personal property doesn't belong in the trust.
I would disagree with this statement.
Usually, there is no record of who owns items of tangible personal property, such as your furniture, etc. An issue can arise at your death when the trustee who succeeds you has the burden of deciding what property is in the trust and what may need probating.
It is recommend that you prepare a simple bill of sale to cover such items and clearly transfer them to your trust. Because we usually continue to make purchases after the date of such a bill of sale, you should reissue such a document on a regular basis, such as once per year.