Revocable Living Trust vs. Will with Kids Trust

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skinsfan
Posts: 27
Joined: Sat Jan 05, 2013 1:14 pm

Revocable Living Trust vs. Will with Kids Trust

Post by skinsfan »

My wife and I recently met with an estate lawyer to set up a will and POAs. Based on my readings on this forum, I went in with the assumption that we would establish a revocable living trust and that's what I told the lawyer. During the initial consult with the lawyer his advise was to set up a kid's trust within the will. The will would dictate that the kid's trust is established upon the death of the second parent.

The lawyer also said that the majority of our assets would avoid probate anyways by setting beneficiaries on our accounts. Basically, he said a living trust is unnecessary for our situation and would cost more for him to set up.

Has anyone else set up their will in this way? I mainly just want to make sure the advice from the lawyer isn't completely off-base.
bsteiner
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Joined: Sat Oct 20, 2012 9:39 pm
Location: NYC/NJ/FL

Re: Revocable Living Trust vs. Will with Kids Trust

Post by bsteiner »

I have, as have about 90% of my clients. Except we only name beneficiaries for life insurance and retirement benefits. Revocable trusts make sense in some cases and in some states. Is there some particular reason one would make sense in your case?
Topic Author
skinsfan
Posts: 27
Joined: Sat Jan 05, 2013 1:14 pm

Re: Revocable Living Trust vs. Will with Kids Trust

Post by skinsfan »

bsteiner wrote: Mon Sep 17, 2018 9:13 pm I have, as have about 90% of my clients. Except we only name beneficiaries for life insurance and retirement benefits. Revocable trusts make sense in some cases and in some states. Is there some particular reason one would make sense in your case?
The only reason is I've seen many people recommending the revocable trust for various reasons (usually avoiding probate and easier process if we are to die). I haven't seen much talk about a kid's trust within the will. Again, just want to make sure that this is an approach that others have taken so your response is appreciated. Thanks.
J295
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Joined: Sun Jan 01, 2012 11:40 pm

Re: Revocable Living Trust vs. Will with Kids Trust

Post by J295 »

In our state wills of the type you describe are just fine in lieu of a revocable trust.
Amy2017
Posts: 112
Joined: Wed Oct 11, 2017 12:02 pm

Re: Revocable Living Trust vs. Will with Kids Trust

Post by Amy2017 »

skinsfan wrote: Mon Sep 17, 2018 9:35 pm
bsteiner wrote: Mon Sep 17, 2018 9:13 pm I have, as have about 90% of my clients. Except we only name beneficiaries for life insurance and retirement benefits. Revocable trusts make sense in some cases and in some states. Is there some particular reason one would make sense in your case?
The only reason is I've seen many people recommending the revocable trust for various reasons (usually avoiding probate and easier process if we are to die). I haven't seen much talk about a kid's trust within the will. Again, just want to make sure that this is an approach that others have taken so your response is appreciated. Thanks.
Yes. Will with kids Trust is the approach we have chosen. What your attorney suggested is very similar to what our attorney told us except he did also recommend revocable living trust. His reason is that by having set up a revocable living trust already, if we happen to die when our kids are still minors, the transition could be smoother. In the end, we decide to choose will instead because of the simplicity.
Iorek
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Joined: Fri Mar 08, 2013 9:38 am

Re: Revocable Living Trust vs. Will with Kids Trust

Post by Iorek »

I think living trusts are a pain and overrated for most estate planning purposes.
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