My partner and I are trying to decide between a testamentary and a revocable living trust (RLT). We have 2 minor children less than 3 years old and want to make sure in the event of our passing they will be taken care of financially. We want to minimize the logistical and financial burden of their guardians but we don't want to make our lives a hassle in the present. Our assets include our checking and savings accounts (at Capitol One), brokerage accounts (at Fidelity and Vanguard), retirement accounts (also at Fidelity and Vanguard), and individual term and group life insurance. We do not own a home, but plan to purchase in the next year.
1. Do assets for a testamentary trust avoid probate? I was told by an estate planning attorney in my state that the assets will pass through probate before they are placed into a trust. (Perhaps state specific.)
2. When a testamentary trust is created upon your death, does the executor of your will/trustee have to go through the process of titling all the assets? I assume they don't magically title themselves. Any sense of how onerous this is?
3. Any one have issues performing their banking with their accounts titled in a RLT trust? Does this ever cause raised eyebrows or hassle beyond the titling process itself?
4. If your bank has a payable/transfer on death option, why not leave the assets to the trust instead of titling into a RLT now?
Thanks everyone! Stay safe!
1. Do assets for a testamentary trust avoid probate? I was told by an estate planning attorney in my state that the assets will pass through probate before they are placed into a trust. (Perhaps state specific.)
2. When a testamentary trust is created upon your death, does the executor of your will/trustee have to go through the process of titling all the assets? I assume they don't magically title themselves. Any sense of how onerous this is?
3. Any one have issues performing their banking with their accounts titled in a RLT trust? Does this ever cause raised eyebrows or hassle beyond the titling process itself?
4. If your bank has a payable/transfer on death option, why not leave the assets to the trust instead of titling into a RLT now?
Thanks everyone! Stay safe!
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