08-13-2006, 05:51 PM
[quote samintx]
Probably any assets left in my mother's Trust will pass tax free to my children because I never owned any of my Mother's property/assets.
No not tax free. Trusts can avoid many things, but taxes is not one of them.
Shiva...the main reason people set up Living Trusts is for the reasons samintx noted. It's private, it's harder for those left out to fight than a Will, it avoids probate (but not taxes). However, even if you have a Living Trust you need a Will. The legal term is "Pour Over" Will. It's purpose is to define who gets what with assets acquired after the Living Trust was created or never included in the LT when it was created. Property in the Pour Over does have to go through probate.
So, if you have a contentious family, or a mixed family (lots of divorces), or lots of assets that need to go to specific people a Living Trust might be right. But, Estate Planning is too important a subject to not talk with an attorney before doing anything. There may be other options in your state that could cost you less money or be more advantageous.
Probably any assets left in my mother's Trust will pass tax free to my children because I never owned any of my Mother's property/assets.
No not tax free. Trusts can avoid many things, but taxes is not one of them.
Shiva...the main reason people set up Living Trusts is for the reasons samintx noted. It's private, it's harder for those left out to fight than a Will, it avoids probate (but not taxes). However, even if you have a Living Trust you need a Will. The legal term is "Pour Over" Will. It's purpose is to define who gets what with assets acquired after the Living Trust was created or never included in the LT when it was created. Property in the Pour Over does have to go through probate.
So, if you have a contentious family, or a mixed family (lots of divorces), or lots of assets that need to go to specific people a Living Trust might be right. But, Estate Planning is too important a subject to not talk with an attorney before doing anything. There may be other options in your state that could cost you less money or be more advantageous.