Quote:
Originally Posted by lewdog
I was told in AZ a trust does a variety of things. We are 33 years old and just had a kid so delineating assets, in case of death is on my mind with a child involved now.
1. It avoids probate which can take years? Is years really true?
-It also avoids probate fees which can be 5% of assets!
2. It limits who has access, can claim access and how much of your assets they can acquire at one time if needed.
3. Would delineate a set amount to be given to children, if both parents die, so your child doesn't blow through their entire inheritance.
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I can't speak to any state other than Massachusetts, but probating a simple estate is not a multiyear process, and even if the formalities take a while, usually it is not that hard to get access to the assets.
I mean, if you're an ordinary couple, then:
1. your house is owned jointly, so it passes automatically upon death without going through probate.
2. your bank accounts and investment accounts are held jointly, so that too goes through probate.
3. your 401(k) etc. often have a named beneficiary, so it will pass outside of probate to your named beneficiary.
So yeah, usually not THAT big of a deal to go through probate, but some of the above may be part of the taxable estate which could have an impact, depnding on the state, and there may be other assets that do need to pass through probate, which can be a pain.
BUT -- KEY CAUTION -- I AM NOT AN WILLS/TRUSTS/ESTATES LAWYER AND THIS IS A F'ING WEBSITE. The legal advice I give is worth about what you're paying for it -- nothing. Seek professional advice from a lawyer with expertise in this issues IN YOUR STATE.