Wills and Trusts.... Online or see an Attorney?

[Emission]

With two kids, a wife, a house, and other assets, my wife and I need to put together a will and trust. My CPA suggested I see an attorney who will likely charge me $1200 for both. Hmmm... I go online and find "LegalZoom" can put together the same "custom" template for about 20% of the price.

Our will won't be complicated as our children get everything (nothing sticky, extraordinary, or hidden).

Does anyone have experience doing this type of thing?

P.S. - I incorporated in CA online a couple years back. Saved a ton of money and it worked flawlessly... this online legal stuff is amazing!

[Scooter]

You have a PM.

[motion]

I also need to setup a living trust... am curious about what others say about the online options.

[competentone]

If you keep it as simple as possible, it shouldn't cost you $1200. What's the break-down on those costs? I'd guess any "trust" would be the greater expense -- consider carefully whether or not such a device is really needed.

I would definitely suggest using an attorney.

Also extremely important is the issue of a "living will" -- know who makes the decisions for you and your wife if one, or both of you, cannot make decisions for yourself. Know whether you want extra-ordinary measure made to keep you alive; have your wishes all spelled out in writing.

[Emission]

I just got off the phone with a real bright attorney about this matter. He kindly pointed out it was much more complicated that I had made it sound (and gave me a million dollar education in 30 minutes).

My take (correct me if I am wrong):

Basically, you have a TRUST and a WILL. The TRUST is the primary document, and the WILL backs it up. To do it best, you want to deed your house to your trust (I think it is called a REVOCABLE LIVING TRUST).

I found out my assets include:

House
Car
Life Insurance
401K
IRA
Personal Property
Cash (ha, not much of that!)

And I have to include:

Guardianship of the Children
Healthcare Power of Attorney
Living Will

There are a billion little things (Who decides if they can pull the plug on me? At what age do my kids get the money? Is a HIPAA document in place to ensure my medical history is released to my family? Etc....).

I am going to consult with a couple attorneys right now.

[competentone]

You really probably don't need the trust unless your assets exceed the amount where you will be hit with inheritance taxes.

You might need the trust if you do not have someone you can trust to receive your assets and use your assets for your children's care and benefit. If you're trying to set-up the trust so your children get your assets when they turn 18 (or some other age) I think you're making a mistake (but that's a whole 'nother issue about raising children).

A lot depends on your net worth and your desires. It can get complicated if there are ex-spouses, or other children involved. Generally though, you can make it relatively simple if you want -- although it might not be seen as completely "fair" to your survivors. (Sometimes an attorney may be reluctant to tell you about "simple" ways since it means less money for him/her.)

[Emission]

Originally posted by competentone
You really probably don't need the trust unless your assets exceed the amount where you will be hit with inheritance taxes.

What is that amount?

Oh, trust me on this one... my kids won't see anything in one lump sum. They are going to curse my conservative plans...

[esther]

I would strongly recommend using an attorney for your estate matters. (and $1200 is CHEAP where I work)

It is not as simple as having a will and a "trust"

Just because you have a will does not mean you have to have a trust. One reason to have a will is to designate who is to be the guardian of your children (besides who is to get what) - depending on your state's statutes, the trust is a means to avoid probate court if your assets exceed a certain amount.

The TYPES of trust available depends on how you want to set up your estate - most opt for a pour-over will into a revocable living trust. This means a lot of nit-picky time-consuming work for the person because all assets have to be transferred into the trust's name -

The Rev Trust can either spell out distributing all your assets upon your death or it can create 1 or more IRREVOCABLE trusts which can be classified as "simple" or "complex" which will affect the tax return preparation and filing and income distribution requirements. (you can set this up to avoid probate or avoid or minimize estate/death tax) This is stated on a very basic level ...

For your house - you may want to explore a QPRT with your attorney (Qualified Personal Residence Trust) as opposed to placing your house in your Rev Trust - (there are gift tax and estate tax consequences and benefits)

all in all, because estate planning and "private wealth management" is complicated with how you manage your estate while alive and how you want your estate managed after you die while trying to minimize your estate tax liability and court costs and attorney fees, having an estate planning attorney is highly recommended... it could save you and your estate thousands of dollars in the long run...

and what I wrote above is just skimming the surface...

JMHO

[Emission]

Originally posted by esther
I would strongly recommend using an attorney for your estate matters. (and $1200 is CHEAP where I work)

OK, I just made an appointment with my CPA's recommended Attorney (sounded like a very nice and honest guy!). He is ball-parking everything (yes, everything) for about $2000 (I guess the new Porsche exhaust will have to wait again.... ).

Considering the value of the assets, and the nightmares we'd leave with crappy documents, it is money well spent.

[StevoRocket]

$2000 - for a will?

Do it online now - a quick simple leave it all to your wife and kids will.

Get it witnessed quickly and anything else you need to do legally.

Now you have time. (unless the unexpected happens)

Then investigate what your freinds did to get some ideas written down.

Then search the web for ideas and guidance and use it to precis your wishes.

Do an inventory of assets.

Then if you have to go see an attorney.

Now he wont be charging you for the time to explain what you already know.

[Emission]

Originally posted by StevoRocket
Do it online now - a quick simple leave it all to your wife and kids will.

... and buy a new Porsche exhaust!

[Scooter]

I can see that many of you have the completely wrong idea about trusts. Most probably don't realize that there are many different types of trusts. Furthermore, a true "estate plan" will include much more planning than a simple Will. My suggestion would be to call an attorney or do some research before concluding that you know what an estate plan is comprised of. This should not be viewed as degrading those opinions expressed above, but look at it this way...just because I have a washing machine in my house does not mean I know how to assemble it. Emission has the right idea...leave it to the professionals.

[StevoRocket]

But first get a very low cost machine so you can at least have clean clothes to do your research in......

[StevoRocket]

I am clearly unaware of the USA situation - but in the UK if you don't make a will your relatives have to obtain probate - and in some circumstances the state can claim your entire estate.

It makes sense to complete a simple will as quickly as you can and to do the research about wills in general and trusts too. Also financial advice can be had from a variety of free sources - and a simple but legal will gives you peace of mind (that your primary wishes are catered for) while you do the research and form your ideas in discussion with your familly and financial advisors.
The build up to a bereavement is no time to start thinking about a will - your attention will be (naturally) elsewhere.
As I know only too well.

[Moses]

Originally posted by Emission

Considering the value of the assets, and the nightmares we'd leave with crappy documents, it is money well spent.

I have a friend who lived with her old grandmother for 8 years. She took her to doctor appointments, cared for her when she was sick. She did this out of love and truthfully never considered what would happen to grandma's beautiful little house when she passed. Grandma always told her that she wanted the house to be hers when she died.

Grandma had no will or trust. When she died, the estate went into probate (I think that's a legal term for "it's ours now!"). Anyway, after years of legal fees and haggling with distant relatives who hadn't seen grandma in decades, she just walked away.

[Burnin' oil]

Git yerself a piece of binder paper and write on it "When I die, everything goes to my wife. If she dies before me, everything goes to my children, to be equally divided. If my wife and I are both dead, then I want Tabs to have custody of our children and my junk is to be used at Tab's discretion for the support of the young 'uns." Ditto for your wife and there you go, Bob's your uncle. If your net worth is "a lot" then go see a lawyer

[Joeaksa]

The main problem with all this is that you do not find out if its done correctly until its too frigging late! The last thing you want to find out is that after someone passes away that the wording was not correct or something was not mentioned so it all goes to probate.

If its worth saving then do it right. At least get a qualified professional to go over it and confirm that its been done correctly.

JoeA

[12own911]

I got a deal on a Special Needs Trust w/ Will. It does not require being filed right now but will need filing as soon as someone tries to add money to it. I paid $600 but it is half of the what normal cost would be. Well worth the money spent...

[911boost]

I just finished having all of this done. It cost me $450. Ofcourse I play hockey with the attorny that did it, so I am sure that did not hurt.

Living Will
Will
Trust

If you have questions I wouold be gald to answer them.

Bill

[Dantilla]

I was chatting with an attorney friend earlier today about people who say they can't afford to have an attorney look over documents. A few bucks now, or $5000 to fix the mess later.