Wills vs Trusts | Which do you need?

Рет қаралды 19,954

Күн бұрын

Should you have a will, or would it be better to have a trust? Let's go over how the law handles assets upon death and how wills work compared to trusts.
Need help? Email me!
Erik@TheRetirementNerds.com
For even more on retirement, visit our website: www.TheRetirementNerds.com
Chapters:
0:00 Introduction
1:19 The Old Model
2:00 The New Model
4:08 Inheriting property without a trust
6:35 Inheriting property with a trust
8:44 Benefits of a trust
10:45 Do I really need a trust?
11:16 Can I do nothing?
12:20 What about co-ownership?
15:36 Conclusion
PLEASE NOTE: This video is for education purposes only.

Пікірлер: 70

@Theretirementnerds 2 жыл бұрын

Greg has done over a thousand estate plans and knows his stuff. If you have questions about Wills and Trusts, we are here to help. Like and Subcribe to help spread the word! kzfaq.info

@eldajackson1 Жыл бұрын

I have listened to this twice now & will probably watch many more times. Excellent info. Thanks. Also, I am a visual learner & your visuals really help me understand.

@Theretirementnerds Жыл бұрын

Thank you so much for watching and leaving such a kind comment!

@45138449 Жыл бұрын

Great video on estate planning!!!! Thank you very much sir!!!!

@Theretirementnerds Жыл бұрын

Thank you for watching!

@veroandariega Жыл бұрын

Thank you so much for this information!

@Theretirementnerds Жыл бұрын

Thank you for watching!

@BRUCEFOWLER-ru7sf Жыл бұрын

very informative. I plan to give all my assets to charity when I pass. . my friend has convinced me to get both a will and trust from your video, i would assume getting both is the way to go

@Theretirementnerds Жыл бұрын

Hi Bruce, it'll depend on your estate. Not everyone needs both, but if you have a decent estate and want to ensure assets go where you want upon death, both could be something to look into. Thank you for watching!

@kathyyip114 11 ай бұрын

Wow! Learned a lot. Thank you.

@Theretirementnerds 11 ай бұрын

So glad! Thank you!

@kville5796 4 ай бұрын

Thank you for providing such detailed and informative content.

@Theretirementnerds 4 ай бұрын

Appreciate you spending some time with us!

@Kenya_Sights_and_Sounds Жыл бұрын

Thank you for the great info.

@Theretirementnerds Жыл бұрын

Thank you for watching!

@joebettencourt7005 Жыл бұрын

I watch this video great information thanks

@Theretirementnerds Жыл бұрын

Thank you!

@creativelyanalytic Жыл бұрын

This was an excellent video! Well explained in layman’s terms.

@Theretirementnerds Жыл бұрын

Thank you!

@heidiglauser6268 2 жыл бұрын

Thanks for sharing! I'm passing this on to my parents!

@Theretirementnerds 2 жыл бұрын

Thank you for watching Heidi!

@track1219 8 ай бұрын

Pretty decent video!

@drjeanduret Жыл бұрын

Thank you for financial insights,good stuff.

@Theretirementnerds Жыл бұрын

Thank you for watching!

@missouri6014 7 ай бұрын

Loved the video

@Theretirementnerds 7 ай бұрын

Thank you!!

@tinalippincott9823 2 жыл бұрын

Excellent information! Thanks!

@Theretirementnerds 2 жыл бұрын

Thank you for watching Tina!

@joronbrice 7 ай бұрын

VERY IMPORTANT INFORMATION

@RonaldKragnes 2 жыл бұрын

14:42 "I've seen this happen a few times. A parent will add a kid to a house, sometimes the kid doesn't even know, but the parent will add a kid to the house, and what will happen is the parent will die and if the parent had put it in a trust and the kid inherits it through the trust. They get what we call a step up in basis to fair market value, and what that means is when the parent bought it, let's say they bought it in the 80s, you know the property's been going up, up, up, up, and now they die. Well, the kid, if they're a co-owner they've got to pay all the gain between when they bought it when the parent bought it to when they died. That is a huge tax hit. Where as if the parent would have put it in a trust, and then died, the kid gets what we call a step up in basis to fair market value. So, they would not pay all that gain. That is a huge difference."

@Theretirementnerds 2 жыл бұрын

This is what my mom and sister did! Fixing that :)

@deecooper1567 Ай бұрын

Thank you for sharing this. I’m at the age of having to know these things 👍👵🏻👩‍🌾❣️

@Theretirementnerds Ай бұрын

We have some exciting estate planning videos coming! Stay tuned :)

@TellMeOneMoreTime Жыл бұрын

Great information...thank you

@Theretirementnerds Жыл бұрын

Thank you for watching!

@yanivyaffe Жыл бұрын

Great video

@Theretirementnerds Жыл бұрын

Thank you!

@godsloveforthegrievingwido7688 Жыл бұрын

Thanks

@elizabethtitilayoolunuga7350 8 ай бұрын

Great video, my question is, is it better to add your child to your account as Pay on death, what are the advantages and disadvantage? Thanks

@charliesangelsphoto 6 ай бұрын

How much a trust cost

@ijenwosu 2 ай бұрын

Does this explanation about Will and Trust apply in all the States, and possibly world wide?

@dgs8011 5 ай бұрын

Did I miss any mention of Transfer on Death provision on your home and car?

@adolfocasanova9009 8 ай бұрын

Do you offer the service to do living trust ?

@barrellcooper6490 10 ай бұрын

I thought i saw something where the IRS changed the rules and trusts no longer the benefit of the step up in basis. Has that happened???

@331silver 11 ай бұрын

What about filing a TODI (Transfer of Death Deed Instrument) with the county thru a lawyer to assign beneficiaries upon your death? That’s if your house is paid for.

@Theretirementnerds 11 ай бұрын

Thanks for watching. A transfer on death deed is an option in some states. It is my understanding that it could help avoid probate but may have some other drawbacks. I would talk to an attorney in your state to verify that it makes sense in your situation.

@kmzlwd 2 ай бұрын

Can property in another country be added to a trust or will here in the US?

@SmallBeginningsBigGoals Жыл бұрын

Great video- very helpful. I have a question and a comment. How would the trust be set up to include the surviving spouse of an adult child? My husband expects that if I survive him, I will be provided for by his expected inheritance from his mother. What if he dies before her? How is a surviving spouse of an heir that predeceases the parent handled in a trust? My comment is, we know of a family where the mom put her house in her adult children's names and took her name off the deed. The house was destroyed in a hurricane. The government had a grant program to help homeowners who lost everything, but it could only be used for the primary residence. The adult children all had their own homes and got grant money for those houses, but the mom's house didn't quality for grant money, since she no longer had her name on the deed.

@Theretirementnerds Жыл бұрын

You will want to talk to an attorney in the state where you reside. A trust can state that if a child dies before they receive their share (upon your death) either goes to their spouse, children, or siblings. In terms of your husband's mom, your trust can't control whether she leaves an inheritance to your son. She would have to do her own estate plan. In her estate plan, she would need to decide what happens to your husband's (currently unvested) part of the estate plan. She would have the options outlined above (either to you as his spouse, to your children, or to her other children). Again, you'll want to talk to am attorney inbyour state though. Hope that helps!

@anthonygardner400 Жыл бұрын

Thanks for the great information. The host introduced Greg Lyle, but never introduced himself! What is his name?

@Theretirementnerds Жыл бұрын

Hi Anthony 👋 Erik here. I talk about Medicare stuff in the other videos on the channel. Thank you for watching!

@anthonygardner400 Жыл бұрын

@@Theretirementnerds Thanks Erik. I just found your channel recently and think it’s so well done. You clearly know your stuff and care about helping people. I’m not 90 days from retirement, but at 63, it’s on my mind. 😊 As I get closer to it, I’ll not only be binge watching your videos, but reaching out to you for guidance, if you’re able to assist Minnesota clients. Please keep up the outstanding work!

@Theretirementnerds Жыл бұрын

@@anthonygardner400 appreciate you watching! 🙏 I am not personally licensed in Minnesota, but I have partners who are and we'd be more than happy to help when the time comes

@RobertPurtle-mf1wr Ай бұрын

Can you add propert to a trust if you have a mortgage?

@Theretirementnerds Ай бұрын

Yes you can! 🙂

@ronyc3270 Жыл бұрын

Question--I've advised a family member to look into this because of problems within the family with the children. My in-law lost their spouse several years ago but they had a Will written up for their 5 children before the one spouse died. In the mean time, my remaining in-law has remarried and no changes have been made to the will. There is some money involved but most of the value is in real estate property and if sold and divided up would create substantial gains for the children that, for the sake of argument, would not be financially responsible with the gains. So, if a trust is written, would the Will have to be modified as well or can a trust simply state that the successor trustee will have the option to divide funds and assets according to the will but have flexibility on how these would be disbursed? And how would the new spouse play into this? We are in Texas.

@Theretirementnerds Жыл бұрын

Want you to know that we will answer this :) The attorney is out with family this week. As soon as he is back in the office, we'll get him to answer this for you. Thank you for your patience and thank you for watching and adding your comment!

@Theretirementnerds Жыл бұрын

Hi Rony, just got the response from Greg who does the video. We are located in Utah and he is licensed under Utah law so that will affect what he can and cannot advise, especially over KZfaq, so: "Thank you for your question. The scenario you raise is highly fact dependent and state law specific. I am licensed under Utah law. You will need to hire a Texas attorney to review the documents and give you advice." I know it doesn't give you the answer you're looking for, but with legal advice, they are under different regulations on what he can and cannot say. Thank you for watching and adding your insight!

@artsoto5459 Жыл бұрын

Great video, I have a question, my wife and I are on the title on our house, but I'm only on the mortgage, if I pass away, would she be able to sell the house, even though she is not on the mortgage without a will or trust?

@Theretirementnerds Жыл бұрын

Hi Art! Thank you for watching and commenting. The non-attorney is managing KZfaq comments so I've passed this along and as soon as I get an answer, I'll send it along. Thank you so much!

@Theretirementnerds Жыл бұрын

Hi Art, Thank you for your patience. Here is what Greg said: You should talk to an attorney in your state, as the answer depends on how you hold title and on state law. Most married couples are joint tenants, which means that if one of you dies the other keeps owning the property. Some couple hold title as tenants in common (which would mean the survivor of you would have to go the court to get the remainder of the house). I have not looked at this issue for some time, but the last I looked, the Garn-St Germain Depository Institutions Act of 1982 allows a relative of a deceased borrower inheriting the borrower's home to keep the home and the mortgage on the home in the deceased borrower's name. Now that being said, it would be a good idea to get a trust in place because (even if you can't avoid probate on the first death) when the second person dies, the house would still go to probate. I would talk to a lawyer in your state to get advice and to plan your estate.

@joebettencourt7005 Жыл бұрын

I have a house my wife passed I remarried the made will before I marry only my daughter is the will du I need a trust

@Theretirementnerds Жыл бұрын

A trust helps prevent assets being held up in court. With your second marriage and only your daughter on the will, if you are wanting your current spouse to receive assets upon your passing, at the very least, you’ll want to revisit the will. A trust will give your beneficiaries less headache and you more control around passing assets how you want upon death. We’d recommend sitting down with an attorney in your area to discuss which options may make the most sense.

@daniellenelson6535 Жыл бұрын

what do you consider not that expensive.

@Theretirementnerds Жыл бұрын

Hi Danielle, are you referring to the cost to do a will and a trust?

@daniellenelson6535 Жыл бұрын

@@Theretirementnerds yes, sorry this got buried in my email.. thank you

@oliverheaviside2539 2 жыл бұрын

Medicaid is an issue. If a Trustee has used Medicaid and has real property in a Trust, after that Trustee dies can the State attach property in the Trust to pay off Medicaid?

@Theretirementnerds 2 жыл бұрын

Hi Oliver, Thank you for the question. Yes, if a person is on Medicaid, the government could come after the person’s house. Medicaid is basically the government’s welfare system for healthcare. It’s paying to provide care for those who are low income and can’t provide for themselves. So, if they own a home and have been getting Medicaid, the government could come back and get a portion of that house to get refunded for the amount paid on the person's behalf. Now that being said, there are attorneys that specialize in Medicaid planning (I am not one of them). You could talk to any attorney in your area (I would just Google the term “Medicaid attorney”) to figure out if there is a way for you to avoid this scenario. A Medicaid attorney can walk you through the risks of divesting yourself of your current assets to avoid a potential future costs. Thank you for watching and commenting! Sorry for the delayed response!