Hoping to get some advice on a trust situation from the group. I will consult with an attorney next week, but wanted to get a sense for what I may be getting into. Here is the situation...
My mother just received an inheritance and now has an estate worth around a 1.2 million. She lives very frugally and has no immediate plans for the money. Her expenses are covered by social security. She is under the impression that she needs to set up a trust which would contain all her assets. Her motivation is to avoid probate costs to the estate upon her death and I have been asked to be a trustee for my mother's estate. I don't know much about the subject, but an hesitant to do so. My concerns are:
1. I would prefer not to manage the estate. She can be irresponsible with record keeping and I am afraid I may be legally responsible/co-responsible for any tax mistakes/decisions she makes.
2. It is her money and I want her to have free access to it. If all her assets are under the trust, will she need to request money from me (the trustee) for large purchases (ex: vacations, etc)?
3. I am not sure the complexity of the trust and necessary tax accounting (I would hire a CPA) are worth the cost of trying to avoid probate costs.
Anyone have any experience with a similar situation? Thanks in advance!
My mother just received an inheritance and now has an estate worth around a 1.2 million. She lives very frugally and has no immediate plans for the money. Her expenses are covered by social security. She is under the impression that she needs to set up a trust which would contain all her assets. Her motivation is to avoid probate costs to the estate upon her death and I have been asked to be a trustee for my mother's estate. I don't know much about the subject, but an hesitant to do so. My concerns are:
1. I would prefer not to manage the estate. She can be irresponsible with record keeping and I am afraid I may be legally responsible/co-responsible for any tax mistakes/decisions she makes.
2. It is her money and I want her to have free access to it. If all her assets are under the trust, will she need to request money from me (the trustee) for large purchases (ex: vacations, etc)?
3. I am not sure the complexity of the trust and necessary tax accounting (I would hire a CPA) are worth the cost of trying to avoid probate costs.
Anyone have any experience with a similar situation? Thanks in advance!
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