Estate plan – will vs trust
If I have $500 k joint acct at schwab, am 75, married and my wife has an $400k ira, i have a $300k ira. We own a personnal residence and 1 rental property and $50k in the bank, do i need a trust for the property? The ira’s, money in the bank, schwab stock fund? In order to avoid probate tax and long delay in getting proceeds to heirs. Or will a Will suffice if all the accounts have designated beneficiaries and our Will designates who gets the properties?
Terry Says
Your will must go through probate. This is the perfect time to consult an estate planning attorney and do it right by creating a Revocable Living Trust. You are correct that accounts with beneficiaries go directly. Andjoint accounts go at death to the surviving owner if titled as JTWROS.
But what if you are incapacitated, but not dead?? That’s where an RLT lets your successor trustee take over your properties and take action. And while you’re at it, create a healthcare power of attorney and give a copy to your physician. And a living will — end of life instructions.
There is no “probate tax.” There is only an estate tax on estates currently well over $11 million. This is not about saving tax money; it is about making things easier for your heirs, or your family if you have a stroke or are in a coma.
