Should You Put Your House In A Trust?
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- čas přidán 28. 06. 2024
- Most people think trusts are just for the uber wealthly. That is incorrect. Trust can be used by average families and individuals to avoid probate, protect assets from a long term care event, and manage assets for minor children. This video will walk you through:
What at trust is?
The difference between a revocable and irrevocable trust
Benefits of establishing a trust
Frequently asked questions
#trust #estateplanning #financialplanning #medicaidplanning #longtermcare #greenbushfinancial #nursinghome - Jak na to + styl
Thank you for this invaluable information. This is the best video on living trusts that I have found.
My husband and I are a second marriage. We are average middle class people. We created a trust after we were married to make it clear what our wishes were to be so there was no issues down the road.) That trust served us well Twenty-four years later my husband was disganosed with cognitive decline and we updated our trust with a guardianship plan for him in the event something happened to me. NOTE: Avoiding the long term care scenario...depends on your state.
i hope nothing will happend to you!
Glad you did not mention the myth that putting your assets in a trust vs a will keeps your family from being able to dispute it. There are many trust dispute attorneys. It may be harder but does not stop heirs from trying to change your wishes.
In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
@@fresnaygermain8180 You are right! I’ve diversified my 450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.
@@bernisejedeon5888 Do you mind sharing info on the adviser who assisted you?
@@valeriepierre9778 “Julia Ann Finnicum” is the coach that guides me, She has years of financial market experience, you can use something else but for me her strategy works hence my result. She provides entry and exit point for the securities I focus on.
@@bernisejedeon5888 She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
Very helpful. Thank you.
Awesome info!!!
Thank you for explaining all of that so well.
Great info! Thanks
Thank you for clarifying some of my questions.
Thank you for a clear explanation. Trying to learn as much as I can so I don’t get burnt again.
Thank you very much for the information.
Love your videos. Thank you for teaching us the great information.
Thank you for your clear explanations. You have helped me intensely.
Helpful information.
Excellent video. Very helpful.
Very informative! Much appreciated for sharing!
great job for the explanation
Straight forward excellent information.
Great video. very informative. Thank you for teaching.
This was a great video. Very informative and provided in a way that really sunk in. Thank you!
You are very good! Thank you. So very clear and concise.
Very clear and straight to the point..
Super helpful. Lots of insight
Thanks for sharing that very important information.
Thank you for the info.,starting to get more information on how to make a trust. Keep it up for those of us that need help.
Extremely helpful! Thank you!
Thanks, that was actually very helpful. I was just thinking about this issue and did a search for info which your video was listed under. Now I have to figure out how to access online info on my property title.
Thank you for your info
Good video. Great point on selling the house if it is in a trust.
Thank you for a clear explanation.
Great video sir thanks for you time
Thank you so much for sharing your knowledge and expertise to help us. I have learned so much from your video.
Thank you, Sir, for taking the time to make this video. So much valuable information given here, spot on! Thank you for sharing your knowledge. Well done. I have an appointment coming up with an estate attorney, and this really helped me out.
thank you for the informative video.
My parents set up a revocable trust that turned out to be a nightmare. They began with Cumberland Trust. Dad asked them 4 times over a 16 month period to sell a house that's draining his funds. They said they'd "revisit that later" but never called him back. He called his estate lawyer and asked her what to do. She called the trust officers who then agreed to list the house by Oct. of 2019, but they never did. In Feb of 2020, they were fired and another, smaller, more local one hired. We found out that Cumberland had never had my parents income taxes filed despite coming to our house to ask for 1099s and telling me they intended to pay bills and file taxes. When I complained, they whined "we're not CPAs", despite having told me twice they would get the taxes filed.
The new corp trustee let Dad's life insurance lapse and Mom's health insurance lapse AND worse is that they lied about it...in email! So they were removed by an attorney. They filed a petition in court claiming my parents were mentally and physically incompetent to fire them. The trust bank agreed to step down if my parents were found competent. I called 38 law firms trying to find one willing to tangle with the bank trustee since they've been in our city for more than 100 years. I found a firm and then a guardian was assigned by the judge who, after 6 months, reported that she had found no evidence of their incompetence.
The corp trustee said they'd go away as long as I'm not trustee. I DON"T WANT to be trustee. The attorneys won't let me find another trustee but they haven't named any either. This has languished for 3 YEARS and no action done except for bills from attorneys and me watching my parents get so frustrated that their health deteriorated in numerous ways. First, they both had a series of mini-strokes then they both became incontinent. Dad couldn't take it anymore and his heart finally gave out. He died in February. Mom is on her way.
Considering how far along we are, and the bank's influence in the city, no law firms will take over to get this moving. It's cruel and irresponsible and corrupt. I can't speak about attorneys as trustees but no one should ever hire a corporate trustee.
Yikes. What an awful experience for you and your family! Remember that movie ‘Falling Down’ with Michael Douglas? These types of stories make MD’s character seem justified. I’m sorry that happened to you.
avoid attornies to maintain trust. Set up in order trustee fam members as executor and trustee. dont meed third parties to interfere nor ask permission and save thousands of dollars. Stop being intimidated- grow a pair.
@@kravgirl7 Agree 100% Avoid lawyers and courts as if your life depends upon it, because both exist purely to profit from your misfortune, sorrow, confusion and fear, and they collude to drain your bank account, eat your time, and suck the life from you. Seriously. Worse than cannibals.
What city? I am dealing with similar situation.
very infomative
great teaching
Great explanation of Trusts. Thank you. Easy to understand and clear.
great video
Good info thank you.
Thank you for your advice very clear and understandable
Thank you very much
Thank you!
Great explanation!
Thank you
My father just passed. He had an Irrevocable Trust. There was some statements in the Trust that were unclear. My brother and myself are the main beneficiaries. One of his life insurance policies is to be split between myself and my brother. There is another life insurance policy and although it is NOT stated in the Trust, the insurance Co states that it is in the trust. His home is also in the Trust. Besides myself and brother, he named 10/12 Grandchildren, and a couple of charities that are to receive a % of the trust. I really believe my father wanted my brother and me to receive the bulk of his estate,and I just don't see that happening. Oh yeah, my Aunt, the Trustee hired an attorney to help with the Trust.
Whatever is not in the trust is part of probate if the life insurance policy does not actually show that the beneficiary is the trust and instead shows an individual, there is nothing to do with the trust
Helpful
I’m not an attorney; nor a financial advisor. *disclaimer*
However, I worked in banking for years helping people with estate distributions.
Trusts seem complicated to understand but setting one up and learning the lexicon/wording used for trust documents is extremely easy.
People can set up their own trust and do the paperwork themselves and those trusts function just as well. It’s a bit of a hassle and some paperwork but if you’re cash poor but have an asset you may want to research it. Especially because it could save your house from being taken from the family.
I can remember many estate fights in families that would have been solved if the decedent had established a trust themselves in life.
You do not have to have an attorney (though it is easier and the best course). People can do this themselves and save 1-3K.
Sounds great! Do you have a template? Mosaicmusic @ aol.com
You make things very clear and easy to understand... Thank you so much! Does the Medicaid Irrevocable Trust apply in California?
I THANK YOU, FOR COMING ON FOR THIS TOPIC ??THERE IS ALOT OF ELDERS AND DISABLE INDIVIDUALS BEING TAKING ADVANTAGE OFF ..CAN YOU REQUEST AN AUIDIT OF THAT DISCOVERED TRUST , IF THE OTHER SIBLINGS /FAMILY MEMBERS DID NOT KNOW , WHAT ACTUALLY HAPPENS TO THEIR PARENTS ASSETS OR FINANCES THAT WAS SUPPOSED TO BE SAVED?
Very good video. Clear and easy to follow
I just reached retirement, so now I'm working on getting things in order for the big one, thank you for the learning video, TRUST is the way to go for me.
Great CHOICE!
Thank you so much. Unfortunately, this video does not have a million subscribers and a million views. That is how much people care about their future planning. Liked and subscribed.
Most of the country live check to check though
@@thomasvance4309Yet they need to think smart and get a TRUST?
Definitely
Great video. Where you taliking about a GRAT or GRUT? To get access to assets in an irrevocable trust
I like the part about paying real estate taxes based on the original purchase price though it has been more than fifty years since and the original owner has been gone for a long time.
Great presentation!!
Medicaid beds do not provide the same care as private nursing. My mother was in Medicaid and my mother in law is currently in private care. The difference is quite noticeable.
I believe you have to file an return for a revocable trust if you have an income producing asset. With that said, it’s wise to distribute the profits (if any) to the beneficiaries because personal tax rates are much lower.
Again outstanding presentation. Very helpful and informative!!!
I have to disagree. My grandmother was in both private care and when the money ran out was in the county nursing home. A week after being in the county nursing home they had to lower her insulin dosages because her sugar was in much better control than it ever was while in the private nursing homes. The county nursing home had a dietitian the private homes never did. All we ever heard in the private nursing homes was the staff complaining about how little they made. In the county nursing home we never heard that once. Her care was far superior in my eyes.
@@mikehlavinka2964 was she in the same place? My mom went straight to Medicaid and MIL to private care.
That said I’m sure it’s possible, but not probable.
@@toreckman8899 no they transferred her out. We discovered later that they could have kept her. Glad she left the place anyhow. She got better care at the county nursing home then she ever got in the private nursing home. It wasn't as fancy but they had a beautiful garden outside that I could push her around in the wheelchair. She loved that.
Many (probably most) nursing homes will take both Medicaid and private care patients. The day-to-day caregivers do not know who is paying the bills. Of course, some homes provide better care than others and very expensive private care homes would be better than any Medicaid home. However, for the normal people, it would be the same care.
medicaids care of elderly and disabled is despicable. bare minimum no care elders stuck together with addicts and mentally disabled, nothing against them obvs but its a little depressing, they are all uncared for and just claimed by insurance.
why not just put your estate in form of LLC or corp? and just transfer shares ?
Very well done. So much more coherent than Many other experts.
Sorry I'm getting to this so late.
So a tax question on an irrevocable trust.
Say I have a portfolio of qualified dividend paying stocks. If my income stays low enough I can get 30 to 50k of dividend payments and be at a 0% tax bracket for that investment income.
But say I put that stock portfolio and my house into an irrevocable trust. Would these qualified dividend payments still be taxed in the same way in the trust as when owned by a person / couple? Or is there a whole new set of formulas for figuring tax from trust assets?
If you are setting up a Grantor Irrevocable Trust, they are still taxed to you as the grantor, the same way they were taxed prior to gifting those assets to your trust. Non-Grantor Trusts are the trusts that are taxed at the special trust tax rates (Comment is for education. Not advice)
Do the same rules apply in Canada? Can you recommend a good attorney in Toronto , Canada, knowledgeable in Trusts
I have a VA Loan and have no dependent. My son is too old to be a dependent so he's not on my loan. I don't want him to have any problems with our house when I die.
Thank you! Do you have a calculator (or video) that would show (educate) the comparison between having a trust before my parents die and if we don’t?
What about using a holding company and leveraging a trust versus a holding company? And when to use each one when you have assets that are not owned outright?
When you get into holding companies you have to factor in the annual cost of maintaining the holding company vs a trust and also who owns the holding company. (Comment is for education. Not advice)
Should you put investment accounts into the trust? Paid off vehicles? RV?
If you have setup a revocable trust, irrevocable trust, or both, it does often make sense to have investment accounts titled in the name of the trust. Whether you register the trust in the name of your revocable trust or irrevocable trust will depend on your objective for that account. You do have the option to register paid off vehicles and RV in the name of a trust as well. Any asset registered in the name of the trust will avoid probate which is usually the goal. (Comment is for education. Not advice)
Great video, so much good information.
Around 4:24, you say "revocable trusts have all the benefits of an irrevocable trust, you avoid probate, you can control it for younger children, but it has two added benefits. One benefit is it protects assets from a long term care event and the other one is it shrinks your estate."
I think you meant the opposite, that IRREVOCABLE trusts have all the benefits of a REVOCABLE trust .... but has two added benefits. Is that correct?
You are correct. Irrevocable trust also avoid probate but have the added benefit of asset protection. Whereas, revocable trust do not provide asset protection. (education, not advice)
THANK YOU very good information. The info on the Irrevocable trust was interesting to me. One question please. I have switched my 401k to an annuity and would like to have that in an Irrevocable trust. What or is there a mechanism to take my RMD out each year. Thank you for your help
IRAs, IRA annuities, and 401ks cannot be owned by a trust. However, you can take distributions from those types of accounts each year (like an RMD), pay the taxes just like any other distributions, and then put the proceeds in your trust. But each contribution will have its own 5 year clock for purposes of the Medicaid look back period. (This comment is for education. Not advice)
what about being manager of a llc inside the irrevocable trust for control????
Do not ever sign up for gov insurance ever: 4 mons before turn 65 send written, legal opt out gov medicare eternaly. only collect the rebate ssi income gov debtor owes you.
Very important point which country law which state?
Informative vide. Can one place one's home into a dynasty (irrevocable) trust but continue to reside in it without paying rent to the trust?
Not sure on a “dynasty trust” but yes to the ability to place a house into Medicaid irrevocable trust, you can live in the house, and not pay rent. (Comment is for education. Not advice)
Can you include property in a different country in your trust?
Who enforces a trust? Neither of my daughters is knowlegeable enough to do it. Please explain the difference between revocable and irrevocable trusts regarding buying and selling a house.
Thank you for this useful video.
My question is if I make some profit on my estate the one under revocable trust do I have file on my tax return
There are a number of questions that I would have to ask to accurate answer this but let me see if this answers your question. If you have assets like house or stocks that are owned by your Rev Trust, the assets receive a step up in cost basis when you pass away so the unrealized gain in those assets go away. Any gain in value from date of death until the beneficiary of the trust sell it is considered a taxable event to the beneficiary. (Comment is for education. Not advice)
How about home equity and or cash out refinances for properties in a trust? How would those work???
Depends on the type of trust. With a revocable trust, it usually is not an issue because you still own the asset. With an irrevocable trust, the financial institution just has to be willing to enter into a refi or HELOC with the trust. (Comment is for education. Not advice)
My family home was placed in a Trust upon my mothers passing approx. 20 yrs. ago to allow my disabled brother to remain in the home as long as he was able to. He received medicaid care and recently passed away due to Covid 19. I live in another state and am not interested in keeping the property. I am the sole surviving member of the family but not the Trustee ( that is a cousin). Can this property be sold outright or will medicaid lein it?
I wish there was a straight answer to your question but to depends on the state the trust was established in and the medicaid policies of the county that was providing the Medicaid assistance. I would recommend contact an estate attorney in the state that your brother lived in for a consult. (Comment is for education. Not advice)
Can you purchase a new property in a revocable trust to avoid your address being attached to your name on public record websites?
You can purchase a house in the name of a revocable trust (Comment is for education. Not advice)
What I learned about this world is!!!! Trust no one!!!
Only God in heaven i fully trust
Not even family...
I bought a house from someone now they want to put the house on the trust I'm not sure how trust so I want him to transfer the deed he claims that signing over a trust is better so I'm confused
AHHHHH! Ring light eyes!!!
great info, does my house need to be cleared title before i can put into a trust or can I do this even though i still owe on it ?
For a Irrevocable trust, the mortgage has to be paid off first. For an revocable trust, most banks will allow you to transfer the deed to your rev trust with the mortgage still outstanding because with a rev trust you technically still own it. (Comment is for education. Not advice)
Thank you. That was very well explained for the lay person. Im a Real Estate Investor in New York. My properties (I have 3) are all in their own LLCs to protect them legally from each other and me. Legally But as I want to be ablt to also pass them to my children i should probably look at putting them in a irrevocable trust instead
You cant put a LLC in a trust? right?
A trust can be an owner of an LLC. (Education. Not advice)
@@greenbushfinancialgroup Interesting. And I presume that the trust can own multiple LLCs. I'll talk to my tax advisor right away about this.
What he just said about Medicaid is not true in the State of Texas. Recoupment of Medicaid benefits in the Lone Star State is called the Medicaid Estate Recovery Program (MERP). When the day comes that you pass away the State of Texas will contact next of kin or authorized representative to inquire whether or not the money that was spent on your care can be recouped. There are several exemptions to this rule such as a surviving spouse. If certain conditions exist they will pursue recoupment if there are exemptions present they will not recoup.
Same for Tennessee
Survivoring spouse is an exemption...
Do you create Trusts for a Florida's resident? How do I get in touch with you? Thank you.
We unfortunately do not have any connections with estate attorney's in FL. However, if you ahve questions on the trust or the strategy, feel free to reach out to me at 518-477-6686 (Comment is for education. Not advice)
So the revocable trust doesnt offer the long term care protections? I dont like the hoops to jump through to access my own assets so im shying away from the irrevoc
able trust option
No, the revocable trust does not offer protection from a LTC event because you technically still own the asset. (Comment is for education. Not advice)
Hello, Michael. I have a question... Can a COMMERCIAL TRUST be inside a LIVING TRUST?
Hi Jay. Thank you for the question. I’m not familiar with the inter workings of commercial trusts. I consulted with one of my contacts that draft trusts and she was not familiar with them either. If someone out there can answer Jay’s question, please leave a comment below…. (Comment is for education. Not advice)
If the spouse leaves everything to surviving spouse and nothing to children? And the home doesn’t have surviving spouse name on deed of home and he or she had helped pay notes as well, what are the requirements to put name on deed?
Is there anyway to word a Revocable Trust to include Protecting Assets from a Long Term Event?
No
Can you put a house into a trust after the husband passed away or does this need to happen before they have passed away. If you can after they have passed, what does the wife have to do to put it in the trust if the house is under both of their names in Texas.
If the house was in both their names, when the husband passed it immediately passed to wife. Once in the wife’s name, you can then establish a trust so when the wife passed the house avoids probate and goes directly to the beneficiaries of the trust. (Comment is for education. Not advice)
Phew!! That’s good to know that it doesn’t have to go through probate twice!
@@JEvrist No probate in either case...the entire point of trust...as i understand it, i may be wrong
Can you get a mortgage on a irrecoverable trust?
That depends on the bank / credit union you are Requesting the mortgage from(Comment is for education. Not advice)
The question I have is, if I own a home (but have a mortgage), and I die,(not married), and I die and I have no will what happens to my home?
The estate laws for the state that you live in will determine who receives your assets in the absence of a will. They vary from state to state. (Comment is for education. Not advice)
How does a Trustee of an Irrevocable trust live in a Trust owned house? I'm speaking of a Non Grantor, IR Trust with discretionary and Spendthrift riders that allows the Trustee to be you? My research so far is a small fee must be paid by Trustee to live in the trust home...thanks!
Risky Business with a Trust. Thank You
Actually, there are also foreign trust, and foreign/domestic hybrid trust that provides the most protection so revocable/irrevocable are not the only Two kinds. Research the Panama papers to see how the wealthy have done this
2 or 3. Grand is still way too much.. all forms are already there to print, simple.
How much money does it really cost to setup a trust?
It definitely varies from firm to firm. If you are just looking to setup a simple trust, it may be in the range of $3,000 - $6,000. (Comment is for education. Not advice)
If you leave things out of a trust, such as a car, are those items subject to probate?
Yes, anything outside of the trust would be subject to probate (Comment is for education. Not advice)
My Mom's house is in a revocable trust. She is in a nursing home. If we sell Mom's house while she is still alive, how is the money received taxed? Is there a cost basis? Is the cost basis determined when the house was put into the revocable trustor when it was put into my Mom's name just before my father passed away?
With a revocable trust she technically still owns the house so it would be taxes as of she still owns it. But you have to be careful about selling the primary residence if she is not private paying for the nursing home. In many states the house is not a countable asset but if you sell it, it becomes a countable asset and could disqualify her from Medicaid. (Comment is for education. Not advice)
@@greenbushfinancialgroup Thank you. We were also wondering if her primary residence is her house or nursing home? Just concerned about the capital gains. I know she would be exempt from the first $250K on her primary residence. She is currently on Medicare not Medicaid. I really appreciate your channel and quick response. thank you
Be sure you can trust the person you designate with your Trust.
SO, IF I OWN A HOME and wife and I die then daughter inherits the home (and if daughter is married then her husband, our son in-law, is technically inheriting the home too.) But, if daughters dirt bag husband leaves the marriage then he can essentially take 50% of the value of that home in the divorce, 50% of the home I originally owned and wished that 100% go to my daughter "only".
If I add my home into a family trust and only my daughter is a beneficiary, not her husband, then is it protected from a potential ex husband taking that wealth?
Yes that's true. The son on law is not a beneficiary of the trust and has no legal right to the assets. However if the trust gives your daughter funds whole she is still married, those funds are now interwoven and he has a right to those funds ( but not the assets)
@@donmountford797 not entirely true. The daughter needs to deposit inheritance in an account in her name only. If she deposited in a joint account it's half his!! Be careful.
Research a living trust.
@@alrent2992 even if it is in her name, if they were to get divorced, their assets would be split whether or not it is an individual account or joint account. One of my employees were recently divorced and the judge had him liquidate 50% of his 401k, pay the taxes and early withdrawal penalty and give it to his soon to be ex wife. He chose to take an additional loan out on his home and use this to pay her an equal amount to 50% of his 401k to avoid the penalty and judge agreed to allow this as an alternative.
@@donmountford797 true because it's an asset that's not in the living trust.
IS having a tax id number a choice for your trust?
Irrevocable trust have their own tax ID. Revocable trusts are typically built in the SS# of the grantor. (Comment is for education. Not advice)