Thanks everyone for the comments, critiques and questions. I will do my best to get back to everyone, and even record additional videos answering some of the questions that came in, as soon as I can. However, I am losing a family member and our home and office are in the path of hurricane Milton so we are preparing for that. If you or a loved one have been impacted by hurricane Helene or will be impacted by Milton, our thoughts and prayers are with you. Be safe and God Bless!
I am a beneficiary of an SNT , I Live on SSI and the trust is running out Now as soon as it's down under 200 my Mom is supposed to grab it from the Fiduciary , My Dad added the House to the trust and said to move right in . I been here 11 years and just now took the electric bills off of the trusts name into mine and this Single family home used to be a Duplex in the 70's . My Dad had it legally turned into a single family in the early 90's by having the Gas meter removed , the upstairs Mail box , He had stairs put in but forgot about the eclectic as he could just pay the bill until he could Die and he did pay the city and it was and is a single family , even on Zillow and all other real-estate sites , on the Taxes I have had the trust pay the last 11 years it says single family . Well when I had called the electric company to take the bills out of the name of his trust and into my name it trigged Health and Human services to send me a letter saying they want it inspected for $200.00 within 30 days , I live on SSI Money now and that's $963.00 a Month in Mo. , I guess I'll have to go down and explain that this is a Single family . If you've been living in a single-family home that was previously a duplex and now people suspect someone is trying to move into the upstairs unit because you recently updated the electrical system .. New System triggers this I guess ?
@@bobcathymattson6065 Hi, there is a link in the description. That being said, here is the link you can use to request your copy of "Save Our Home: How to Protect Your Home and Life Savings from Long-Term Care and Nursing Home costs" www.rouletlaw.com/reports/how-to-protect-your-home-from-nursing-home-costs.cfm
Election is one of those things that could really contribute to portfolio growth and vice versa. I've been going hard with my investments this year and have been able to build up to 180k. Are there tips I could apply to help me grow my portfolio even more during this election season?
Well detailed video. Things are a bit strange right now. Inflation is making the dollar weaker for buying things like basic needs, but it's getting stronger against other stuff. So, stuff like stocks, houses and precious metals aren't doing so great because folks are putting their money into banks for safety but I'm worried about my retirement savings losing value fast
If you are in cross roads or need sincere advice on the best moves to take now its best you seek an independent advisor who knows about the financial markets. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one, after my retirement pension took a hit in April due to the crash
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
My CFA ’Gabriel Alberto William a renowned figure in her line of work. I recommend researching his credentials further. he has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
After going through probate when my parents died, I went immediately to an attorney and did a trust, so my son doesn't have to go through probate. I am surprised my parents didn't do this because my mom would have been so pissed knowing how much money we had to pay the state.
Thanks for sharing. Every client that we have worked with that previously went through the probate process for a family member has wanted to avoid it for their own family.
I have had my assets and homes in trusts since 2004. I have sold and refinanced multiple times. Trusts are so common now that I have never had a problem or additional cost associated with any transaction. I have had to furnish trust documents for review but there has never been any cost associated with it.
@@firehorsewoman414 You should only need the certificate of the trust but, I have had to furnish the entire trust. It has not been a problem. It is just another email document.
@@firehorsewoman414 Thanks for your question. Yes, the point of a certificate of trust is so that third parties who may need to interact with it (like a bank), have the information they need while the balance of your trust can remain private.
Disadvantage #2 is a big one. My mother-in-law had to refinance to get some money to fix a septic issue. Wells Fargo did something where the house was pulled out of the trust. Didn't even seem they wanted to go through the legal paperwork to have it kept in the trust during the refinance. We caught this when we had her trust updated (just before severe dementia kicked in) Also Wells Fargo was listed as the executor which we removed during the update. Not sure when they were put on the trust as executor. Moral of the story, make sure you keep the house in a trust at all costs. Review and get it updated (revocable trust) Those costs are much less (we paid about $2500 to update it) You don't want to go through probate 🙂
That sounds pretty fishy that Wells Fargo would be made the executor of a trust. That would seem to mean that they would have been able to determine how the trust contents would get distributed. But I'm sure they have your best interest when they did that, Don't you think ?
Not sure how Wells Fargo got on the trust. The trust has been around since 1990 Mother in law had two underage children. Also had a mortgage with Wells Fargo. While they would have been bound by law to act according to the trust, I am curious if they would have charged a "fee" to act as executor? Just not sure how it was decided to have WF on the trust. I am guessing WF probably pushed it? Saying something like since she had a mortgage with them they had to be? I am guessing back in 1990 things were much shady back then. Just a lesson to review all trusts and wills if they've been around for decades.
Thanks for your question. Here is a link to a video where I previously discussed the differences between revocable and irrevocable trusts ruclips.net/video/pzUfS5jwKRM/видео.html
I was expecting to learn some disadvantages of having my home in a trust, but it just validates what I've already done. This helped me understand just a little bit better why a trust is a good thing.
When my mom died her will created three new trusts, which, along with a trust that had been set up a decade earlier, keeps me busy filling tax returns. For various personal reasons I used a tax accountant this year, he changed a little over one thousand dollars _per trust_ for filing the returns. Obviously I will go back to doing them myself, but it’s still substantial time and effort every year to do all the tax paperwork for the trusts, I would consider that a substantial downside. As an aside, the AI recommended this video to me, apparently because last weekend I was at a friend’s house, hanging out, just casual conversation, and we were discussing the pros and cons of him putting his house in trust to avoid probate, and now this video pops up in my feed Monday morning. I’m old enough that I’m not used to the ubiquity of AI surveillance, and it kinda creeps me out, but I suppose I should be happy that the AI connected me to a useful resource.
Thanks for your comments. I'm glad you found the video as well. The downside you are having is not that your mom's home was put into a trust. Rather, it is that she decided to design the trust to keep assets in it for some period of time after she passed away (and there are often good reasons for doing that). If instead of maintaining assets inside of the trust, they were distributed to you and other heirs after her passing, then only a final tax return would have been required instead of ongoing returns. So it was the design of the trust and not that a home was in a trust that is the "downside" for you. I hope that helps.
@@rouletlawfirmp.a.4922 thanks for the additional context and information. In my case, the trust lasts until the last of my sister and I die, at which point all the assets in the trust go to charity. My biggest concern about the trust is who will do the paperwork when I’m no longer able to do it myself.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.
oh here we go again with the back in the day comments about interest rates, yes they were higher, but the prices of homes were a lot less than they are currently. BACK IN MY DAY BACK IN MY DAY.
@@hwoodist rental home has more protection when it’s in LLC; however, homeowner insurance liability might be at higher rate than property in your own name.
Thanks for checking in. We lost some roof tiles on our home and our office sustained damage. All things considered, we were very fortunate. Unfortunately, many of our friends, clients and neighbors were not so fortunate.
Great information, one additional issue with trusts is you cannot pull a permit to do your own work or be your own general contractor in Florida for your primary residence.
Hi, I'm glad you found this helpful. You should confirm your personal situation with your CPA, but a revocable trust should not, barring something else, impact the home office deduction.
My state allows Transfer on Death deeds which is a much lower cost option that transfers ownership upon death. Also, keep in mind any retirement accounts (IRA, 401K, etc.) cannot be put inside of a trust and must stay in individual's name. Naming beneficiaries solves this problem with no added cost.
Thanks for your comment. You may want to check out this article on my website where I discuss the hidden dangers of transfer on death deeds (which I will be turning into a video soon). www.rouletlaw.com/blog/the-dangers-of-transfer-on-death-deeds-what-you-must-know.cfm Yes, you are correct that you don't want to change the ownership of qualified retirement accounts to a trust as that would be a taxable event and naming beneficiaries on them avoids probate. However, a properly drafted trust can be the beneficiary and still get the "stretch". This can be a benefit when you have minor children and/or you do not want to leave them outright to a beneficiary for some reason such as poor money management skills, a divorce, substance abuse issues, creditors or if they are receiving certain types of government benefits.
I’m really hoping you can reply in hypothetical terms. Question is re: Mortgage Co-Rev trust split equally amongst siblings. When a trustee sells trust real property to a beneficiary well below FMV, with the knowledge that another beneficiary disagrees (but states “all beneficiaries agree to convey property”) on deed transfer is the mortgage lender concerned? Should they be notified of the misrepresentation?
There is no one answer as it depends on your state, the properties you have and the language of your trust. I can say that I routinely help clients that own agricultural property in MN put it into trust without issues. I also help clients in FL transfer their homes into trusts while preserving homestead. I would suggest working with an experienced estate planning attorney near you to discuss the best approach for you.
My wife and I live in Florida. Our estate legal team said we didn't need trusts or wills, just a properly executed lady bird agreement. How do those fit into an estate plan?
There are pros and cons to every option and that includes ladybird deeds. A ladybird deed can avoid probate and can be less expensive than a trust. Those are pros. However, there are also some cons to them such as the beneficiaries and their spouses needing to sign off on transfers after the fact. I'll be doing a video on ladybird deeds in the future.
My parents didn't see a need for a trust...they had the lawyer make up a TOD (transfer on death) for the home deeds and the banks designate beneficiarys for the bank accounts and investments..easy peasy.
I'm glad to hear that everything worked out for your family. TODDs and beneficiary designations can be a less expensive alternative to a trust. That being said, there are downsides to them as well. For example, not all states have TODDs, spouses have an interest in the property which can sometimes lead to disputes, and a recent 8th Circuit Court of Appeals decision held that homeowner's insurance coverage does not extend to beneficiaries of a TODD. That is why I always suggest meeting with a qualified professional to discuss your planning goals, the options as well as the pros and cons of the options so you can make an informed decision. I will actually be doing an upcoming video on TODDs to discuss this further. There are definitely pros and cons to all of the options.
Yep......I don't own our home. My wife does, the deed is in her name. I am the beneficiary on a TOD deed. Easy Peasy. If we both die at the same time, the home goes to our three children equally according to our Will which has an attorney as the executor and in Colorado a probate for one home is easy peasy. No trust needed........
@@TM-li7bl TODDs have some disadvantages you should know about before doing one. ruclips.net/video/A_1BtK3L0Ug/видео.html I hope you find this helpful.
@@rouletlawfirmp.a.4922 Who gets the 3% to 6% in probate? If you're talking about some thieving attorney, NO WAY! I don't need thieving "help" like that.
We lived in Florida and had a will and trust completed in that state. We sold our home there and purchased a home in Illinois Can you tell me the proper steps to update our trust with our new address without having to incur all new costs.
I am not licensed in Illinois so I cannot comment on what you may need to change, if anything. You should contact an attorney in Illinois to discuss whether or not any changes are needed.
I am at California resident. I purchased it townhouse in Florida as an investment property, I am trying to put it under my California LLC does this work or do I need to make an LLC in the state of Florida first?
I would suggest just setting it up in FL. You could set it up in CA, however then you would need to register it to do business in FL. If you need help setting it up in FL, we'd be happy to help. You can reach my assistant at 941-909-4644 or through our website at Rouletlaw.com
I can't comment on all states and all types of trusts. However, in MN you do not lose homestead for transfers into a revocable trust. In FL you do not lost homestead as long as both the trust and the deed transferring the property into it contain the required language.
I have my home in a living trust in California. 500K can be excluded from the capital gains if married and file jointly. The question is: if the house in a living trust, can I still get this capital gains exclusion?
A guardianship is when a court appoints a third party to help take care of someone. A conservatorship is when a court appoints a third party to help manage someone's financial affairs. These are completely separate from a trust and one does not supersede the other.
Hi, as mentioned in response to other questions, a properly prepared trust should not impact your property taxes or exemptions and I'm not sure what you are referring to when you write "difficult to contest property insurance." Who is "contesting" property insurance?
@@rouletlawfirmp.a.4922 NYS for example gives credits to people, and various exemptions. You'd be paying more if the land were owned by a trust, and not an individual. And they access higher. What a coincidence. And they cannot contest their taxes easily.
@@rouletlawfirmp.a.4922 NY is a big state, but outside of the NYC area, and cities, it seems a bit of the wild west out there. They seem to have a contempt for businesses and even trusts.
I can't comment on all states and all types of trusts. However, in MN you do not lose homestead for transfers into a revocable trust. In FL you do not lost homestead as long as both the trust and the deed transferring the property into it contain the required language.
I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 53 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 56 yo and have put $9,000 in an IRA and $40,000 in my portfolio with CFA, Evelyn Infurna. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, I was able to scale this quickly to $150,000. If I can do this in a year, anyone can.
I know this lady you just mentioned. Evelyn Infurna Services is a portfolio manager and investment advisor. She gained recognition as a former employee at Goldman Sachs; a renowned investor she is. Evelyn Infurna has demonstrated expertise in investment strategies n has been involved in managing portfolios and providing guidance to clients.
I went from no money to lnvest with to busting my A** off on Uber eats for four months to raise about $20k to start trading with Evelyn Infurna. I am at $128k right now and LOVING that you have to bring this up here
Anyone that has been involved with a probate knows to avoid that at all cost. This is just about a home right? So why does a trust cost more than a will, for just a home? If anything its very little difference.
@@robertmccully2792 not only to avoid probate when homestead property or stock portfolio is name in a trust but when beneficiary sell property they will inherited the cost value of the property on the day the trustee died which help them paying less capital gain to IRS. For instance a single person brought a home in 2000 cost $250,000 placed the house into the trust. This person died today the market value for this house is $500,000 and if the beneficiary selling for $500,000 tomorrow . The beneficiary will pay $0 capital gains tax ($500K -$500K). On the other hand, if the house is not in the trust, the beneficiary will pay ($500K - $250K) $250K capital gains to IRS. Stock portfolio treats the same way for brokerage account not name in the trust.
Thanks for your question. The reason a trust-based estate plan usually costs more than a will-based one is that when doing a trust, a will should be included as a backup. It is known as a pour-over will so that in the event any assets requiring probate are missed, you have a will providing instructions to the court. Here is a link to a video I did explaining pour-over wills ruclips.net/video/jeZTCZW-kbA/видео.html
@@rouletlawfirmp.a.4922 Yea i understand that, but the title was house in trust. i guess you expended past that. Or perhaps your talking about contents. The reason any fees are high is people do not come prepared knowing exactly what they want.
@@FauxQue-yk8dt how do you qualify homestead exemption on 3 homes? Huh…I smell fishy. Here is Florida law: Section 12D-7.012 - Homestead Exemptions - Joint Ownership (1) No residential unit shall be entitled to more than one homestead tax exemption. (2) No family unit shall be entitled to more than one homestead tax exemption. (3) No individual shall be entitled to more than one homestead tax exemption. Hope you don’t get audit by property county appraisal cause when they get their hands on your property, you’ll pay a hefty taxes especially at property value increased during these past three years.
@@Fluffy-x7v Interesting point. I have no clue why it's set up like the way it is. Primary residence qualifies for a $25,000. Homestead exemption. Then your Primary residence qualifies for an additional exemption of $25,000. And the 3rd one is for limited income seniors who make less than $20,000. a yesr. That exemption is another 5k off of the taxable value of your home. I get the Senior discount being separate. The two $25,000. Exemptions is beyond me. If you're eligible for one, you're eligible for the additional as well.
@@FauxQue-yk8dt usually a primary is your homestead exemption where you have assessment value deduction $25,000 + $25,000 for non disable, low income senior, military, teacher, EMT. Then if you are disabled, low income senior, military, etc then you get additional deduction from the assessment value. In your situation look like you only have 1 property not 3 properties. We live in FL and had our home deed transferred to the trust in Jan 2024 and our homestead exemption is still there $50,000. It’s how the attorney wording in the trust and on the deed. I can only advised you to contact several estate lawyers for a better advices because cost is from $1200 to $5000+ depends how extended and assets you have. Wishing you best of luck.
So I recently heard that if you have a trust and also have over 100k in assets that are not owned by the trust, then you will still go to probate. I heard this from an Illinois bank’s trust dept. Can anyone clarify this?
All states have a specific amount of money/assets that if you own them in your own name without a surviving joint owner or beneficiary or that you did not have in your trust, then probate is required for those assets. So yes, if there were assets not owned by the trust and without a surviving joint owner or beneficiary that total over the amount specified by state law in IL, probate would be required.
You still get the step up in basis for assets in a revocable trust. You can also get it for assets in an irrevocable trust. Only when the trust is designed to move the property out of your estate for estate tax purposes do you not get the basis step up.
Thanks for your question. Yes, it can make it a bit more secure since if they want to transfer a property out of a trust, in most instances they would also need to prepare and record a certificate of trust and/or affidavits of trustee in addition to a trustee's deed which examples of may not be as readily available and easy to create for a layperson as a quitclaim or warranty deed.
We don't have TOD in Kentucky , we do have POD , I just went through all this in the last couple months when my lifetime partner of 36 years passed away and since we never got married we both knew we had to protect each others and all assets in case something happens to either of us , we did and did everything correct and by Kentucky's laws and bypassed probate it went smoothly and saved thousands of dollars in lawyers fees it was the best thing we ever did it was hassle free transferring all assets to my name solely , I don't wish death on anyone but if you don't have your assets in order to bypass probatethat you can have more headaches than you can imagine .
As I tell my clients multiple times a week, "I don't make the law. I just tell you what it is, how to make it work for you to accomplish your goals, and yes, it is often nonsensical to me as an attorney as well."
All the cons are “too much paper work and cost, and then there’s so much paper work” I will now hit the “do not recommend this channel” option under the three dot menu
I, like millions more, am interested in protecting (hiding) my wealth so taxpayers (neighbors) can pay my bills as I age , sounds great. I found one needs to hide the money at least 5 years ahead of the high bills of old age and several legal maneuvers can help me avoid paying my own bills. I know I use honest words (truth and honesty is taboo in these things) but this is what is actually the goal.
If you already have a Revocable Trust there are no drawbacks in putting your home in the trust. Don’t believe me? Find any nice neighborhood in your area and look up the title to see the owners, 80% will be revocable trusts.
While it isn't always the case, for many people it is the best option. I explain to all of my clients that it I don't think it is my job to tell them what to do. Rather, it is my job to help them understand all of the options and the pros and cons of the options so they can make an informed decision.
The "Free guide" is not free. You are required to provide personal information, including you phone number. Who will your name and phone number be sold to? Personal information has value, and we're already getting endless phone calls from spam callers, who needs more?
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.
People dismiss the importance of advisors until they are burned by their own emotions. I remember a couple of summers ago, following my lengthy divorce, I needed a good boost to assist my business stay alive, so I looked for qualified consultants and came across someone with the highest qualifications. She has helped me raise my reserve from $275k to $850k, despite inflation.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
You still get the step up in basis for assets in a revocable trust. You can also get it for assets in an irrevocable trust. Only when the trust is designed to move the property out of your estate for estate tax purposes do you not get the basis step up. And if you are doing that, it is because it makes sense to do it for tax planning.
Thanks everyone for the comments, critiques and questions. I will do my best to get back to everyone, and even record additional videos answering some of the questions that came in, as soon as I can. However, I am losing a family member and our home and office are in the path of hurricane Milton so we are preparing for that. If you or a loved one have been impacted by hurricane Helene or will be impacted by Milton, our thoughts and prayers are with you. Be safe and God Bless!
All the best!
I am a beneficiary of an SNT , I Live on SSI and the trust is running out Now as soon as it's down under 200 my Mom is supposed to grab it from the Fiduciary , My Dad added the House to the trust and said to move right in . I been here 11 years and just now took the electric bills off of the trusts name into mine and this Single family home used to be a Duplex in the 70's . My Dad had it legally turned into a single family in the early 90's by having the Gas meter removed , the upstairs Mail box , He had stairs put in but forgot about the eclectic as he could just pay the bill until he could Die and he did pay the city and it was and is a single family , even on Zillow and all other real-estate sites , on the Taxes I have had the trust pay the last 11 years it says single family . Well when I had called the electric company to take the bills out of the name of his trust and into my name it trigged Health and Human services to send me a letter saying they want it inspected for $200.00 within 30 days , I live on SSI Money now and that's $963.00 a Month in Mo. , I guess I'll have to go down and explain that this is a Single family . If you've been living in a single-family home that was previously a duplex and now people suspect someone is trying to move into the upstairs unit because you recently updated the electrical system .. New System triggers this I guess ?
Olo
good video,
But, the "How to Protect Home & Life Savings" did not show. can you forward this to me?
Thanks in advance.
@@bobcathymattson6065 Hi, there is a link in the description. That being said, here is the link you can use to request your copy of "Save Our Home: How to Protect Your Home and Life Savings from Long-Term Care and Nursing Home costs" www.rouletlaw.com/reports/how-to-protect-your-home-from-nursing-home-costs.cfm
Election is one of those things that could really contribute to portfolio growth and vice versa. I've been going hard with my investments this year and have been able to build up to 180k. Are there tips I could apply to help me grow my portfolio even more during this election season?
Well detailed video. Things are a bit strange right now. Inflation is making the dollar weaker for buying things like basic needs, but it's getting stronger against other stuff. So, stuff like stocks, houses and precious metals aren't doing so great because folks are putting their money into banks for safety but I'm worried about my retirement savings losing value fast
If you are in cross roads or need sincere advice on the best moves to take now its best you seek an independent advisor who knows about the financial markets. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one, after my retirement pension took a hit in April due to the crash
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
My CFA ’Gabriel Alberto William a renowned figure in her line of work. I recommend researching his credentials further. he has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Thank you for putting this out, it has rekindled the fire to my goal
After going through probate when my parents died, I went immediately to an attorney and did a trust, so my son doesn't have to go through probate. I am surprised my parents didn't do this because my mom would have been so pissed knowing how much money we had to pay the state.
True, we paid out $19,500 inhertnance fees.
Thanks for sharing. Every client that we have worked with that previously went through the probate process for a family member has wanted to avoid it for their own family.
I have had my assets and homes in trusts since 2004. I have sold and refinanced multiple times. Trusts are so common now that I have never had a problem or additional cost associated with any transaction. I have had to furnish trust documents for review but there has never been any cost associated with it.
While it depends a bit on the lender, that is largely the experience for us and our clients as well. Thanks for sharing.
Shouldn’t you only need to furnish a certificate of trust so that the bank doesn’t get to see the private details of your trust?
@@firehorsewoman414 You should only need the certificate of the trust but, I have had to furnish the entire trust. It has not been a problem. It is just another email document.
@@firehorsewoman414 Thanks for your question. Yes, the point of a certificate of trust is so that third parties who may need to interact with it (like a bank), have the information they need while the balance of your trust can remain private.
Disadvantage #2 is a big one. My mother-in-law had to refinance to get some money to fix a septic issue. Wells Fargo did something where the house was pulled out of the trust. Didn't even seem they wanted to go through the legal paperwork to have it kept in the trust during the refinance. We caught this when we had her trust updated (just before severe dementia kicked in) Also Wells Fargo was listed as the executor which we removed during the update. Not sure when they were put on the trust as executor. Moral of the story, make sure you keep the house in a trust at all costs. Review and get it updated (revocable trust) Those costs are much less (we paid about $2500 to update it) You don't want to go through probate 🙂
That sounds pretty fishy that Wells Fargo would be made the executor of a trust. That would seem to mean that they would have been able to determine how the trust contents would get distributed. But I'm sure they have your best interest when they did that, Don't you think ?
Not sure how Wells Fargo got on the trust. The trust has been around since 1990 Mother in law had two underage children. Also had a mortgage with Wells Fargo. While they would have been bound by law to act according to the trust, I am curious if they would have charged a "fee" to act as executor? Just not sure how it was decided to have WF on the trust. I am guessing WF probably pushed it? Saying something like since she had a mortgage with them they had to be? I am guessing back in 1990 things were much shady back then. Just a lesson to review all trusts and wills if they've been around for decades.
Wow. Shady. I hate Wells Fargo.
Where he talks about the cost. I printed the trust documents out for free online and paid 5$ to have it notarized when done.
You could also weigh in on the different kinds of trusts as in revocable and irrevocable and their pros & cons.
Thanks for your question. Here is a link to a video where I previously discussed the differences between revocable and irrevocable trusts ruclips.net/video/pzUfS5jwKRM/видео.html
I was expecting to learn some disadvantages of having my home in a trust, but it just validates what I've already done. This helped me understand just a little bit better why a trust is a good thing.
Glad it was helpful!
When my mom died her will created three new trusts, which, along with a trust that had been set up a decade earlier, keeps me busy filling tax returns. For various personal reasons I used a tax accountant this year, he changed a little over one thousand dollars _per trust_ for filing the returns. Obviously I will go back to doing them myself, but it’s still substantial time and effort every year to do all the tax paperwork for the trusts, I would consider that a substantial downside.
As an aside, the AI recommended this video to me, apparently because last weekend I was at a friend’s house, hanging out, just casual conversation, and we were discussing the pros and cons of him putting his house in trust to avoid probate, and now this video pops up in my feed Monday morning. I’m old enough that I’m not used to the ubiquity of AI surveillance, and it kinda creeps me out, but I suppose I should be happy that the AI connected me to a useful resource.
Thanks for your comments. I'm glad you found the video as well. The downside you are having is not that your mom's home was put into a trust. Rather, it is that she decided to design the trust to keep assets in it for some period of time after she passed away (and there are often good reasons for doing that). If instead of maintaining assets inside of the trust, they were distributed to you and other heirs after her passing, then only a final tax return would have been required instead of ongoing returns. So it was the design of the trust and not that a home was in a trust that is the "downside" for you. I hope that helps.
@@rouletlawfirmp.a.4922 thanks for the additional context and information. In my case, the trust lasts until the last of my sister and I die, at which point all the assets in the trust go to charity. My biggest concern about the trust is who will do the paperwork when I’m no longer able to do it myself.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.
oh here we go again with the back in the day comments about interest rates, yes they were higher, but the prices of homes were a lot less than they are currently. BACK IN MY DAY BACK IN MY DAY.
Good information, well presented. Thanks.
I'm glad you found it helpful.
Put my home and rental property in a Trust because I’ve seen firsthand what happens when estates are mishandled.
@@hwoodist rental home has more protection when it’s in LLC; however, homeowner insurance liability might be at higher rate than property in your own name.
Thank you for the great advice. I plan to listen to your channel often.
Thanks. I'm glad you found this video and my channel helpful!
I hope you and yours suffered no damage during those horrible storms.
Thanks for checking in. We lost some roof tiles on our home and our office sustained damage. All things considered, we were very fortunate. Unfortunately, many of our friends, clients and neighbors were not so fortunate.
Would you include in a video the pros and cons of adding an adult trust ed child to the deed?
Watch for an upcoming video on this topic. If you have not already, make sure you hit the subscribe button and you will be notified when it goes live.
Great information, one additional issue with trusts is you cannot pull a permit to do your own work or be your own general contractor in Florida for your primary residence.
Thank you for a very informative presentation. Does putting home in a trust affects the ability to use home office deduction?
Hi, I'm glad you found this helpful. You should confirm your personal situation with your CPA, but a revocable trust should not, barring something else, impact the home office deduction.
@@rouletlawfirmp.a.4922 Thanks a lot for your answer.
My state allows Transfer on Death deeds which is a much lower cost option that transfers ownership upon death. Also, keep in mind any retirement accounts (IRA, 401K, etc.) cannot be put inside of a trust and must stay in individual's name. Naming beneficiaries solves this problem with no added cost.
Thanks for your comment. You may want to check out this article on my website where I discuss the hidden dangers of transfer on death deeds (which I will be turning into a video soon). www.rouletlaw.com/blog/the-dangers-of-transfer-on-death-deeds-what-you-must-know.cfm Yes, you are correct that you don't want to change the ownership of qualified retirement accounts to a trust as that would be a taxable event and naming beneficiaries on them avoids probate. However, a properly drafted trust can be the beneficiary and still get the "stretch". This can be a benefit when you have minor children and/or you do not want to leave them outright to a beneficiary for some reason such as poor money management skills, a divorce, substance abuse issues, creditors or if they are receiving certain types of government benefits.
What about property taxes? Not having a homestead exemption can be costly over time. Can a Trust have tax advantages in this scenario?
Hi, I answer your question in this video: ruclips.net/video/3Lwq88VuxJk/видео.html
I’m really hoping you can reply in hypothetical terms. Question is re: Mortgage Co-Rev trust split equally amongst siblings. When a trustee sells trust real property to a beneficiary well below FMV, with the knowledge that another beneficiary disagrees (but states “all beneficiaries agree to convey property”) on deed transfer is the mortgage lender concerned? Should they be notified of the misrepresentation?
In Florida, do you loose your Homestead Exemption if you transfer ownership to a Trust from an Individual?
Thank you
When you transfer real estate into a trust, do you lose homestead and agriculture exemption . Please give me answer. Thks.
There is no one answer as it depends on your state, the properties you have and the language of your trust. I can say that I routinely help clients that own agricultural property in MN put it into trust without issues. I also help clients in FL transfer their homes into trusts while preserving homestead. I would suggest working with an experienced estate planning attorney near you to discuss the best approach for you.
@@rouletlawfirmp.a.4922 i am in Flotida. How could i get in touch with you. Thank you. I need your office number.
My wife and I live in Florida. Our estate legal team said we didn't need trusts or wills, just a properly executed lady bird agreement. How do those fit into an estate plan?
There are pros and cons to every option and that includes ladybird deeds. A ladybird deed can avoid probate and can be less expensive than a trust. Those are pros. However, there are also some cons to them such as the beneficiaries and their spouses needing to sign off on transfers after the fact. I'll be doing a video on ladybird deeds in the future.
My parents didn't see a need for a trust...they had the lawyer make up a TOD (transfer on death) for the home deeds and the banks designate beneficiarys for the bank accounts and investments..easy peasy.
I'm glad to hear that everything worked out for your family. TODDs and beneficiary designations can be a less expensive alternative to a trust. That being said, there are downsides to them as well. For example, not all states have TODDs, spouses have an interest in the property which can sometimes lead to disputes, and a recent 8th Circuit Court of Appeals decision held that homeowner's insurance coverage does not extend to beneficiaries of a TODD. That is why I always suggest meeting with a qualified professional to discuss your planning goals, the options as well as the pros and cons of the options so you can make an informed decision. I will actually be doing an upcoming video on TODDs to discuss this further. There are definitely pros and cons to all of the options.
Can’t do that in NC.
Definitely we will do this too!!!
Yep......I don't own our home. My wife does, the deed is in her name. I am the beneficiary on a TOD deed. Easy Peasy. If we both die at the same time, the home goes to our three children equally according to our Will which has an attorney as the executor and in Colorado a probate for one home is easy peasy. No trust needed........
@@TM-li7bl TODDs have some disadvantages you should know about before doing one. ruclips.net/video/A_1BtK3L0Ug/видео.html I hope you find this helpful.
What is the 3% to 6% cost you referred to with probate for a trust? Who gets that percentage, and is there a way to eliminate it altogether?
A fully funded trust can avoid probate. The 3% to 6% is an estimate of what probate costs.
@@rouletlawfirmp.a.4922 Who gets the 3% to 6% in probate? If you're talking about some thieving attorney, NO WAY! I don't need thieving "help" like that.
We lived in Florida and had a will and trust completed in that state. We sold our home there and purchased a home in Illinois Can you tell me the proper steps to update our trust with our new address without having to incur all new costs.
I am not licensed in Illinois so I cannot comment on what you may need to change, if anything. You should contact an attorney in Illinois to discuss whether or not any changes are needed.
Is the trust manager responsible fot the home mortgage?
If you put your home into a revocable trust, you are usually the one creating the trust and the trustee of it. You would still pay the mortgage.
@@rouletlawfirmp.a.4922 thanks. that's something to consider before i put my parents home in a trust.
I am at California resident. I purchased it townhouse in Florida as an investment property, I am trying to put it under my California LLC does this work or do I need to make an LLC in the state of Florida first?
I would suggest just setting it up in FL. You could set it up in CA, however then you would need to register it to do business in FL. If you need help setting it up in FL, we'd be happy to help. You can reach my assistant at 941-909-4644 or through our website at Rouletlaw.com
THANKS FOR ALL THE INFORMATION 😊
I'm glad you found it helpful.
How does putting the home in a trust affect homestead property tax exemptions?
I can't comment on all states and all types of trusts. However, in MN you do not lose homestead for transfers into a revocable trust. In FL you do not lost homestead as long as both the trust and the deed transferring the property into it contain the required language.
I have my home in a living trust in California. 500K can be excluded from the capital gains if married and file jointly. The question is: if the house in a living trust, can I still get this capital gains exclusion?
Trust doesn’t change income taxes.
A “ living trust” does not change the income tax result. Other trusts may well affect income tax.
How do I order the book Save our home
You can download it at this link www.rouletlaw.com/reports/how-to-protect-your-home-from-nursing-home-costs.cfm
How do I look up the answer to my question in your comment?
Does trust supersede guardianship?
A guardianship is when a court appoints a third party to help take care of someone. A conservatorship is when a court appoints a third party to help manage someone's financial affairs. These are completely separate from a trust and one does not supersede the other.
thanks for yours information
I'm glad you found it helpful.
Any additional information on TOD or application thank you
I have additional videos coming.
Higher property taxes, no exemptions, and more difficult to contest property taxes.
Hi, as mentioned in response to other questions, a properly prepared trust should not impact your property taxes or exemptions and I'm not sure what you are referring to when you write "difficult to contest property insurance." Who is "contesting" property insurance?
@@rouletlawfirmp.a.4922 NYS for example gives credits to people, and various exemptions. You'd be paying more if the land were owned by a trust, and not an individual. And they access higher. What a coincidence. And they cannot contest their taxes easily.
@@normbograham3 As I am not licensed in NY, I wasn't aware of their obviously odd rules. Thanks for sharing.
@@rouletlawfirmp.a.4922 NY is a big state, but outside of the NYC area, and cities, it seems a bit of the wild west out there. They seem to have a contempt for businesses and even trusts.
@@normbograham3 Unfortunately, not surprising.
No breakdown between revocable or irrevocable trust.
Check out my video here ruclips.net/video/pzUfS5jwKRM/видео.html
If you put your home in a trust do you loose your homestead exemption?????
I can't comment on all states and all types of trusts. However, in MN you do not lose homestead for transfers into a revocable trust. In FL you do not lost homestead as long as both the trust and the deed transferring the property into it contain the required language.
I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 53 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 56 yo and have put $9,000 in an IRA and $40,000 in my portfolio with CFA, Evelyn Infurna. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, I was able to scale this quickly to $150,000. If I can do this in a year, anyone can.
I know this lady you just mentioned. Evelyn Infurna Services is a portfolio manager and investment advisor. She gained recognition as a former employee at Goldman Sachs; a renowned investor she is. Evelyn Infurna has demonstrated expertise in investment strategies n has been involved in managing portfolios and providing guidance to clients.
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As a newbie, what do I need to do? How can I invest, on which platform? If you know, please share. I'm new to this, please how can I contact her?
Use her name to quickly conduct an internet search.
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Anyone that has been involved with a probate knows to avoid that at all cost. This is just about a home right? So why does a trust cost more than a will, for just a home? If anything its very little difference.
@@robertmccully2792 not only to avoid probate when homestead property or stock portfolio is name in a trust but when beneficiary sell property they will inherited the cost value of the property on the day the trustee died which help them paying less capital gain to IRS. For instance a single person brought a home in 2000 cost $250,000 placed the house into the trust. This person died today the market value for this house is $500,000 and if the beneficiary selling for $500,000 tomorrow . The beneficiary will pay $0 capital gains tax ($500K -$500K). On the other hand, if the house is not in the trust, the beneficiary will pay ($500K - $250K) $250K capital gains to IRS. Stock portfolio treats the same way for brokerage account not name in the trust.
Thanks for your question. The reason a trust-based estate plan usually costs more than a will-based one is that when doing a trust, a will should be included as a backup. It is known as a pour-over will so that in the event any assets requiring probate are missed, you have a will providing instructions to the court. Here is a link to a video I did explaining pour-over wills ruclips.net/video/jeZTCZW-kbA/видео.html
@@rouletlawfirmp.a.4922 Yea i understand that, but the title was house in trust. i guess you expended past that. Or perhaps your talking about contents. The reason any fees are high is people do not come prepared knowing exactly what they want.
Can I sell a house I have in a trust?
Yes you can.
How would a Trust affect my 3 Homeowner exemptions in Florida?
@@FauxQue-yk8dt how do you qualify homestead exemption on 3 homes? Huh…I smell fishy. Here is Florida law:
Section 12D-7.012 - Homestead Exemptions - Joint Ownership (1) No residential unit shall be entitled to more than one homestead tax exemption. (2) No family unit shall be entitled to more than one homestead tax exemption. (3) No individual shall be entitled to more than one homestead tax exemption.
Hope you don’t get audit by property county appraisal cause when they get their hands on your property, you’ll pay a hefty taxes especially at property value increased during these past three years.
@@Fluffy-x7v Interesting point. I have no clue why it's set up like the way it is. Primary residence qualifies for a $25,000. Homestead exemption. Then your Primary residence qualifies for an additional exemption of $25,000. And the 3rd one is for limited income seniors who make less than $20,000. a yesr. That exemption is another 5k off of the taxable value of your home.
I get the Senior discount being separate. The two $25,000. Exemptions is beyond me. If you're eligible for one, you're eligible for the additional as well.
By Florida Statute you will maintain your Homestead Exemption as long as your are the beneficiary of the Trust with an interest of at least 50%.
@@Fluffy-x7v sounds like he’s referring to exemptions other that the statutory Homestead
@@FauxQue-yk8dt usually a primary is your homestead exemption where you have assessment value deduction $25,000 + $25,000 for non disable, low income senior, military, teacher, EMT. Then if you are disabled, low income senior, military, etc then you get additional deduction from the assessment value. In your situation look like you only have 1 property not 3 properties.
We live in FL and had our home deed transferred to the trust in Jan 2024 and our homestead exemption is still there $50,000. It’s how the attorney wording in the trust and on the deed. I can only advised you to contact several estate lawyers for a better advices because cost is from $1200 to $5000+ depends how extended and assets you have. Wishing you best of luck.
I don’t think any of those listed objections are a reason to avoid a trust. In addition the trust can be passed per stirpes and is a more recognized.
Thanks for your comment.
If I put my primary home in Texas in a living trust, my name is no longer on the deed. So will I lose the Homestead Exemption tax?
No, but you will have to reapply after the transfer.
I am not licensed in TX so you'll want to check with an experienced estate planning attorney near you.
How do trusts affect property taxes and insurance?
It should not affect your property taxes. You should add your trust as an additional insured on your homeowner's policy.
So I recently heard that if you have a trust and also have over 100k in assets that are not owned by the trust, then you will still go to probate. I heard this from an Illinois bank’s trust dept. Can anyone clarify this?
All states have a specific amount of money/assets that if you own them in your own name without a surviving joint owner or beneficiary or that you did not have in your trust, then probate is required for those assets. So yes, if there were assets not owned by the trust and without a surviving joint owner or beneficiary that total over the amount specified by state law in IL, probate would be required.
Probate?
No step up basis!
You still get the step up in basis for assets in a revocable trust. You can also get it for assets in an irrevocable trust. Only when the trust is designed to move the property out of your estate for estate tax purposes do you not get the basis step up.
With deed fraud on the rise, does placing a home inside a trust make it more secure from this sort of crime?
Thanks for your question. Yes, it can make it a bit more secure since if they want to transfer a property out of a trust, in most instances they would also need to prepare and record a certificate of trust and/or affidavits of trustee in addition to a trustee's deed which examples of may not be as readily available and easy to create for a layperson as a quitclaim or warranty deed.
Good information but more information would have been better.
What else would you like to know? Post it and I may answer it in another video.
We don't have TOD in Kentucky , we do have POD , I just went through all this in the last couple months when my lifetime partner of 36 years passed away and since we never got married we both knew we had to protect each others and all assets in case something happens to either of us , we did and did everything correct and by Kentucky's laws and bypassed probate it went smoothly and saved thousands of dollars in lawyers fees it was the best thing we ever did it was hassle free transferring all assets to my name solely , I don't wish death on anyone but if you don't have your assets in order to bypass probatethat you can have more headaches than you can imagine .
I'm sorry about the loss of your partner. I'm also glad you planned ahead of time which made managing the legal aspects easier.
So, we’re f in any which way to further complicated this system
As I tell my clients multiple times a week, "I don't make the law. I just tell you what it is, how to make it work for you to accomplish your goals, and yes, it is often nonsensical to me as an attorney as well."
What kind of person asks you to hit the like button BEFORE you've seen any of the content? Am I missing something?
it's so you don't forget. If you watch it and don't like it, you can click it off...
Pretty much all of them.
What about the reset of the basis?
It's not too economical to pay taxes on $480,000 when you have to sell grandma's $10,000 house.
You still receive the basis step-up when in a revocable trust. An irrevocable trust can also be drafted to receive the basis step-up..
All the cons are “too much paper work and cost, and then there’s so much paper work”
I will now hit the “do not recommend this channel” option under the three dot menu
I, like millions more, am interested in protecting (hiding) my wealth so taxpayers (neighbors) can pay my bills as I age , sounds great. I found one needs to hide the money at least 5 years ahead of the high bills of old age and several legal maneuvers can help me avoid paying my own bills. I know I use honest words (truth and honesty is taboo in these things) but this is what is actually the goal.
If you already have a Revocable Trust there are no drawbacks in putting your home in the trust. Don’t believe me? Find any nice neighborhood in your area and look up the title to see the owners, 80% will be revocable trusts.
Thanks for your comment, and yes, that is often the case.
3 disadvantages compared to 5 advantages. You don’t need to be a mathematician to see why a trust is the winner.
While it isn't always the case, for many people it is the best option. I explain to all of my clients that it I don't think it is my job to tell them what to do. Rather, it is my job to help them understand all of the options and the pros and cons of the options so they can make an informed decision.
incomplete list. a BIG con is property tax renewed at much higher rate when title transfers
No disadvantages in my opinion...
The "Free guide" is not free. You are required to provide personal information, including you phone number. Who will your name and phone number be sold to? Personal information has value, and we're already getting endless phone calls from spam callers, who needs more?
We don't sell your information.
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.
Well as you know bigger risk, bigger results, but such impeccable high-value trades are often carried out by pros.
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My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.
Can't i just add someone to my Deed ?
Anyone that owns a home and doesn’t have it in a trust is just a clueless person.
Do you know what step up in basis is?
You still get the step up in basis for assets in a revocable trust. You can also get it for assets in an irrevocable trust. Only when the trust is designed to move the property out of your estate for estate tax purposes do you not get the basis step up. And if you are doing that, it is because it makes sense to do it for tax planning.
@@rouletlawfirmp.a.4922 Ok thanks. Seems others on you tube say no step allowed if home is in a irrevocable trust.